Directors Wages

How do I Input Directors Wages into my Accounts?

 

As a Director and 100% Shareholder you can take drawings out of the business, either as Dividends (which attract capital gains tax) or as a Salary (which is PAYE).

The dividends are a drawing on profits (or reserves) by shareholders. This is separate from the director's remuneration.

An entry is made in the company secretary file for the dividend amount agreed for the year and the actual payment (or payments) are recorded in currentaccounts.xls.

Your tax liability will be a personal tax liability you pay when sending your accounts in to HMRC. 

If you pay yourself a Salary and are a Director of the business these costs are part of the administration cost for the company and appear as "director's remuneration" in the Profit and Loss.

You can use HMRC's Payroll to enter the monthly Salary into the system and then direct into the package using the Wages Interface sheet.

 

 

 

 

All Articles