Question: How can a one man company in Guildford keep its payroll costs down after 6 April 2013?
Answer: If its just a payroll for directors, it could pay them their annual salary in April, and submit an “inactive report” to HMRC under the new RTI payroll scheme in April for the remainder of the year, leaving the inactive date end blank. As yet, not many accountants are aware of this short cut yet.
This way, payroll costs can be minimised. Whoever is doing the payroll though will need to ensure that the director is on the “annual scheme” for national insurance purposes, so that his annual limit is applied to this one off payment, not the normal weekly/monthly thresholds.
If you need a payroll expert to do this for you, please contact us. We are chartered accountants in Guildford.