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Payroll

Do I need a payroll scheme if I am the only director?

Answered by the TAG Accountancy team · Norwich, Norfolk

Quick Answer

If you draw a salary, yes. You need a PAYE scheme and RTI submissions even where the salary is below the threshold at which tax and National Insurance…

If you draw a salary, yes. You need a PAYE scheme and RTI submissions even where the salary is below the threshold at which tax and National Insurance become payable, because it is the reporting that is required rather than the payment.

Most director-only companies pay a salary set around the National Insurance thresholds because it is deductible against corporation tax and preserves a qualifying year for the State Pension. That still needs reporting properly.

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