Here at Rothmans Salisbury we often have people wondering when they run their own company but have no employees and only pay themselves a small salary once a year and take dividends the rest of the time, what will happen when the Revenue’s new Real Time Information starts. They wonder whether they will have to start to pay themselves monthly. The answer is-
No, you won’t. You won’t have to pay yourself monthly or make monthly submissions provided you inform the Revenue in advance of your “period of inactivity”.
The Revenue will not then expect any return or payment for the period you specify.
Once RTI starts you will need to make your first submission which will include all your personal details i.e. full name, date of birth, NI number etc. this is for “payroll alignment”.
You can then submit a further submission to advise the Revenue that you will have no paid employees or directors for one or more complete months.
You will still be able to continue taking you monthly dividends and make an RTI submission for the tax month in which you pay yourself your salary.
Remember your tax and NIC are not calculated on a monthly basis if you are director but on an annual basis. So bear this in mind when doing the calculations as you may end up overpaying your NIC.
There is a lot of information on HMRC’s website regarding RTI but if you need help or advice on this or your remuneration strategy please contact us.