Set up as Ltd company but now may have to go PAYE.....

[MrSkipsey]

Im wondering if you guys can help as the accountant is away on his merry holidays.
I started working a few years ago as a sub contractor and the company told me they could pay me one of 3 ways. So I set myself up as a Limited company and they paid me gross through that via a fortightly invoice.

Ive since been out of work and have been doing abit agency wise who also pay gross via the Limited company.

Theres a possibility that I may be ofered a job working days. So Ill be able to double up, days and and a few hours during the evening with the agency. However the copany that I would be working days for will only pay PAYE.

Obviously Ill be eanring both ways. PAYE and gross through my limited company. How does this work with the tax man?

Is it allowed?

 

[jimuk07]

Hi

That sounds like pretty easy stuff for an accountant to sort out for you, so should not be too much of a prob.

But just out of interest, when your ltd company receives a gross payment dont you have to pay yourself under PAYE ( as the company owns the money, not you) deducting your Tax & NI and also complete a tax return each year as you are director?
If this is the case you could have two PAYE entries in your return using the information from your P60's.

 

[ajelec10]

Hi, as far as i am aware and correct me if iam wrong but at the moment you should be employeed by your limited compay and be payed divedends to top up your wages its not a problem to be employed by two seperate companys you just have to watch what tax bracket you will end up in at the end of year to avoid having to pay more
Hope this helps
AJ

 

[stretchyboy]

You will be better off paying yourself basic rate tax via your own company and let the new firm that you'll work for pay you normally and have the tax-code and therefore the allowance, so that you down use your allowance twice. It's quite easy to do really.