Skip to main content
P
PaulC555
June 16, 2023
Question

Payroll PAYE

  • June 16, 2023
  • 1 reply
  • 0 views

Afternoon

 

Can anyone help please?

I am trying to run payroll to take a small salary out of my new business. 

I am currently still employed as a company director in another business, and all of my tax liabilities are covered via my salary in this position. 

Whilst the new business is growing, I had intended to "top up" my income by drawing a small salary from the new business. My tax code as advised by HMRC in the new company reflects the fact it is secondary employment. 

If I try to create a salary for £1000 per month which keeps it below the threshold in Scotland for taxable income it is still trying to take £210 deduction for PAYE. 

Can anyone advise if this is correct? I would like to have around £1000 take home as a top up to my other salary but didn't expect any tax liability at this rate of pay.

 

Thanks

Paul

 

1 reply

A
Ashleigh1
June 16, 2023

Hello PaulC555, thanks for posting on the Community page, what payroll is it you are using in QuickBooks is it advanced or standard? 

P
PaulC555Author
June 16, 2023

Ashleigh

 

I believe it is just standard....

 

thanks

Paul

 

C
ChristineJoieR
June 16, 2023

Hello there, @PaulC555. I'll drop some insights about this scenario in QuickBooks Online Payroll.

 

I'd like to share that in QuickBooks Online Payroll, calculate and deducts tax amount for compliance purposes. 

 

You pay Scottish Income Tax if you live in Scotland, and it is paid to the Scottish Government. Scottish Income Tax applies to your wages, pension, and other taxable income.

 

We highly advise you to contact your tax agency to confirm the amount deducted from your salary, whether this is taxable or non-taxable income.

 

I'm also adding this article for an overview and guide on what items are taxable or non-taxable. See this for more details: Income Tax is a tax you pay on your income.

 

Know that we are always here to support your growing business. Notify us if you need information with tax-related concerns.

Terms & ConditionsAccessibility statement