Tax for Directors paid by dividends

Palms
Palms Registered Posts: 5 New contributor 🐸
in Tax
Help, having a really bad few days and not able to recall the things I'm sure I know...

I have a director on who is paid from dividends & wants to pay tax and NI on a monthly basis. I run sage payroll for his employees. Do I put him on as an employee (it is a ltd company) and put zero salary and calculate his tax & NI manually by book method?

Thanks in anticipation of someone saving my sanity!

Palms:confused1:

Comments

  • AK002
    AK002 Registered Posts: 2,492
    I may be wrong here, but do dividends not get put on a self assessment tax return and taxed that way?

    Hopefully someone else will confirm/disagree..
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    That's right

    The only way he could do it is manually calculate what tax is likely to be due and put it to one side.

    Why would you want to pay Inland Revenue before you have to?
  • Palms
    Palms Registered Posts: 5 New contributor 🐸
    duuhhh - I said I was having a bad few days.

    Thanks for bringing me back:thumbup:
  • sloshed
    sloshed Registered Posts: 100 🎆 🐘 🎆
    I know you more than likely realise this but there is no national insurance on dividends as it is classed as investment income :001_tt2:

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