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AAT Comment: The bookkeeper and PAYE queries

AAT_TeamAAT_Team Administrator Posts: 544
In this the second article on payroll matters the focus will be on income tax and national insurance (NI) queries.

Income tax and NI calculations may be simple enough, but an employee’s situation may not be. So, in an attempt to save the busy bookkeeper or agent the stress of researching the answers, below are some typical queries that can arise.

Full article.


  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    edited March 2018
    "If a question like this is asked the bookkeeper needs to find out if the business is incorporated, if it is then, the owner is a director and both PAYE and corporation tax is due on company profits."

    I think this sentence is wrong.

    The owner doesn't necessarily have to be a director, and PAYE is not necessarily due. Moreover, PAYE is not a tax it is a tax collection method.

    The owner could pay themselves dividends & pay income tax via self assessment (rather than via PAYE).
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    Apart from the above error (an error IMHO) the article is a good whistle stop tour of everyday payroll.
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,432
    edited March 2018
    "The above may seem obvious, but don’t expect the client to know the difference. They are seeking an expert to handle all their tax and statutory obligations, and because they do not have specialist knowledge the terminology they use will be often be inaccurate or muddled."

    you are correct but I think you have to read the article in its context. Funnily enough It reminds me of a thread on here not long ago...
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    I wonder how much AAT paid Julia Hodgskin for this article.
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