Tax Free Allowances and PAYE

If you a company director and are currently claiming your personal tax allowance through your company as salary, you will need to ensure that the company is registered for payroll and is meeting with HMRC's real time payroll regulations.

Your personal allowance for the 2014/15 tax year is £10,000. If this amount is claimed through your company as salary, you will save £2,000 in corporation tax.

To continue to receive NI credits towards your state pension, the tax-free salary must be declared through the company’s payroll. Your company therefore must be registered for PAYE with HMRC in order for you to take advantage of the tax free allowance.

In addition to registering your company for PAYE, Bambridge Accountants can handle all of your company’s payroll needs, including: 

  • Processing monthly payroll for your employees
  • Calculating holiday pay, maternity pay and paternity pay, pension deductions, benefits etc
  • Providing electronic and/or paper payslips for your employees
  • Processing end of year payroll

If you would like us to handle your monthly payroll or register your company for PAYE with HMRC, contact our Payroll Administrator Veronica Owusu at veronica@bambridgeaccountants.co.uk