UK I may have paid myself by mistake

[BinaryBoy77]

Hi,

I started a small business in March and now have a revenue of £1500. I have put %20 for corporation tax into a savings account to pay at the end of the year and transferred the remainder to my personal account as profit.

I am the only person in the LTD company. Should I have set myself up as an employee for PAYE beforehand?

I'm new to this and learning as I go.

Thanks

Paul

 

[Fidget]

You don't have to. It's your business so you could pay yourself a salary, or extract profits in the form of paying yourself a dividend. So it sounds like you've basically paid yourself a dividend of the profit remaining after tax (assuming you mean that you have £1,500 profit rather than revenue). There's a nil rate band for dividends up to £2k at the moment for the recipient, so you won't have any tax to pay on this occasion. Just be mindful that you can't pay yourself a dividend if there aren't any after tax profits and it's your year end profits/losses that count (it's illegal for a LTD to pay dividends if there's no distributable profits to pay them from).

Oh, and don't forget that the dividend payment needs to go through your accounts.