Expenses, PAYE and Dividends - Request for Help - Free Business ...

Hi! This is my first time here -- I hope you don't mind me dropping in a asking questions!

I started a Limited Company in January after leaving full-time employment. I didn?t register my new company for PAYE until April as I wanted to keep my finances as simple as possible.

I have yet to receive any expenses, pay or dividends from my company. I have been submitting zero ?No monthly payment due? to HMRC each month.

Mileage & Expenses
I believe I can claim 45p/mile for a business mileage without paying any additional tax (I?m doing well under 10,000/year limit); I?ve kept a log of all the business mileage I?ve done since January. I should also be able to claim 50% of my home broadband (as I use this approximately 50% of the time for business use) and 75% of my personal mobile phone bill (as I use this for business a lot).

Can I just transfer these expenses from my business account to my personal account? Do I declare I have received these expenses on my personal tax return and / or my company end-of-year P34 or P14?

Pay
I would like to start getting paid a small salary from my business each month. I would like to keep this below the National Insurance LEL because the business doesn?t have much money (yet?!) and I?d like to keep it as simple as possible. If I paid myself ?450/month over the year, then this should mean zero National Insurance and income tax would be due.

Again, does this mean I can transfer this money from my business account to my personal account each month? I would also provide myself a pay slip, and continue submitting ?No monthly payment due? to HMRC.

Dividends
If there are any profits at the end of my business tax year, I may take a dividend from the company. I would need to give myself a dividend slip and declare it on the business P34 / P14 and self-assessment tax return, and pay Corporation Tax on this. I know this is simplified, but is this basically the whole procedure?

Any pointers and advice on these issues would be greatly appreciated!

Thanks, Martin.

Source: http://www.freebusinessforums.co.uk/accounts-finance-tax-affairs/31043-expenses-paye-dividends-request-help.html

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