If you run your own LTD company, you may want to pay yourself a salary without registering for PAYE. This article will provide information that you need to know if you plan on taking that step.
Paying a salary without registering
If you aren't registered for PAYE but you want to pay yourself a salary through your LTD company it's important to note that you can only pay yourself up to the Lower Earnings Limit (LEL). This works out to £123 per week or £6,396 for the year.
Paying yourself at or below the Lower Earnings Limit for the full year means that year will not count as a qualifying state pension year. Remember you need 35 qualifying state pension years to qualify for the full state pension in the UK.
You must keep payroll records and cannot provide any benefits without being registered for PAYE.
Should I register for PAYE?
There are a lot of advantages to registering for PAYE if you plan to pay yourself a salary through your LTD company and Ember would advise that you do so.
We would be more than happy to assist you in the registration process so please reach out to our team via Intercom and we can get the process started!