Small Business Accounting

How do I pay myself a salary?

By

Chris Andreou

How do I pay myself a salary? guide

Contents

If you're the director of a limited company, you're also considered an employee. As such, you may pay yourself a salary through the PAYE scheme-which is similar to how other employees of the company receive their pay.

You'll need to register as an employer with HMRC (even if you're only employing yourself as the sole director of a limited company), set up and run payroll, report to HMRC and abide by HMRC's record keeping requirements.

<p>If you're the director of a <a href="https://goforma.com/limited-company" target="_blank">limited company</a>, you're also considered an employee. As such, you may pay yourself a salary through the PAYE scheme-which is similar to how other employees of the company receive their pay.<br></p><p>You'll need to register as an employer with HMRC (even if you're only employing yourself as the sole director of a limited company), <a href="https://www.gov.uk/paye-for-employers/setting-up-payroll" target="_blank">set up and run payroll</a>, report to HMRC and abide by HMRC's record keeping requirements.</p>

Read more of our Small Business Accounting guides:

Business accountant available for free consultation

Get a free accounting consultation

We'll walk through everything you need for starting or switching.