As a taxpayer you have a Personal Allowance. This is money you can earn each year without paying any tax.
You can take this allowance through your company’s PAYE scheme as a director’s salary.
Your ability to take the allowance will be reflected in your Crunch account and is based on previous earnings figures given to us when you first became a client. If you have used your full allowance already you will only be able to take dividends from your company.
If you started trading as a limited company before 6 April this year and have started using the Crunch software midway through your trading year, you will need to record any previous monthly director’s salary taken back to 6 April this year to bring your account up to date.
To take a director's salary firstly navigate to the "Pay Yourself" tab and then to "Payroll runs" tab in the sub-menu, before clicking on the "Add new: Payroll run" button:
Start by entering the date of your payroll run (the date of the salaries you are about to record).
Once you've entered a date, all of the company's directors (and any other employees) at that time will appear in the list. In our example below, we just have one director.
You'll notice that the "Gross salary" field is populated. This is the amount we recommend you take, on the given date, to be as tax-efficient as possible. To find out how that amount is calculated, simply click the blue information icon for further details:
You can change this value to be lower if you wish, but not higher, as you will start to pay tax on your salary. If you still wish to take a higher salary, please contact your Client Manager.
If you just want to record salary, you can click "Save payroll run" now. However, if you also wish to create a director withdrawal for this salary, tick the "Pay" checkbox for the relevant director:
You'll notice the "Payment details" section of the form is now available to fill in.
If you have more than one director in your company and wish to record that you have paid them in different ways, (e.g. one transfer from the company bank account and one cheque), select the "Enter payment details per employee" radio button and enter the various payment details for each employee.
Once you're done click "Save payroll run", and your salary and director withdrawals will be created.
If you need to download or email your director's salary payslips, navigate to the "Director's salary" list page and use the "Options" menu to download your payslips as a PDF.
Need more help?
Check out our video guide to paying yourself.