How do I pay myself and others a salary?

Once you are set up as a limited company, you may want to start paying yourself and any employees a salary. One thing to remember, is that your company is a separate legal entity from yourself and therefore, there are certain rules when it comes to extracting money.

The first thing that you must do, is to set your company up as an employer and then you can begin to pay yourself and employees through the PAYE scheme. PAYE (pay as you earn) allows you to decide the gross amount you would like to pay yourself before any taxes are deducted. The amount of tax you pay will be dependent on the tax code you receive from HMRC and you can use either HMRC calculators or an accounting software to calculate your National Insurance contributions.

There may also be further deductions including pension contributions and student loan contributions to account for.

At Shaw Gibbs we have a dedicated Payroll team. Our clients can take advantage of the payroll services that we offer, meaning you don’t need to worry about complex payroll obligations and can focus instead on making good business decisions.

To read more about our Payroll offering, visit our dedicated Payroll page.

For more information on how we can help please contact Katie Preston, Payroll Services Manager at katie.preston@shawgibbs.com or call 01865 292200 if you would like further advice.