Director Payroll

Managing directors' payroll is an essential part of running a company successfully. The annual payroll process ensures directors receive accurate compensation while complying with tax regulations. As a director, you can choose to receive payments monthly or annually, and submissions made to HMRC need to reflect this. At Affotax, we understand the importance of timely and accurate payroll management, which is why we offer our services to businesses of all sizes. Our team will manage your director payroll, making sure that the correct submissions are made to HMRC throughout the year if a director is paid intermittently. This will give you the flexibility you need as your business grows.

At times, directors might wonder if they need to register for PAYE. PAYE registration is required if you make a salary or receive other income as a director of a limited company. It's because you yourself are an employee of the company. At Affotax, we can help you register for PAYE, and our team can manage the process for you. By availing of our service, you can focus on growing your business while we handle your payroll needs. Get a quote now!

Director Payroll Monthly

The monthly director payroll package covers the essentials for smooth director payroll processing, ensuring accurate calculations and compliance. This service cost £15 a month per employee.

Package includes:

  • Calculation of director's salary, benefits, and allowances
  • Tax and National Insurance deduction calculations
  • Preparation and issuance of annual pay slips
  • RTI/FPS monthly submission to HMRC


Director Payroll Annual

The annual director payroll package covers the essentials for smooth annual director payroll processing, ensuring accurate calculations and compliance.

Package includes:

  • Calculation of director's annual salary, benefits, and allowances
  • Tax and National Insurance deduction calculations
  • Preparation of annual pay slips
  • RTI/FPS annual submission to HMRC


Benefits of our Directors Payroll service:

 Effortless Management: You can manage your director payroll easily, ensuring accurate and compliant compensation.

 Data Security: Your payroll information is handled securely and remains confidential, so trust Affotax!

 Legal Compliance: Expertly manage your director payroll requirements, ensuring adherence to tax and legal obligations.

 Amount Confirmation: Receive confirmation of the amount to be paid to HMRC each month, and a reminder of the due date.

 Electronic Payslip: You can choose to receive your payslips in an electronic format, making the process easier for you.

 P60 Processing: The year-end process, including P60, will also be emailed to you, making sure you have everything you need.

 Processing P45: Your year-end tax returns are handled by Affotax with HMRC, and the P45 will be emailed to you directly.

 Personalised Support: You get one hour of phone or admin support during each financial year, so you can get help when you need it.

 Resource Optimisation: You can focus your time and resources on strategic decisions by entrusting Affotax with your director's payroll.

You can ensure accurate pay and payroll compliance with our Director Payroll services. Get a quote now! 🚀💼


1. What is a directors payroll?  

Director payroll is the process of calculating and managing annual salary payments, tax deductions, and National Insurance contributions. This is for their employment with the company.

2. Why is annual director payroll important?

To ensure that directors receive accurate compensation and comply with tax regulations, it promotes financial transparency and legal compliance on the part of directors.

3. How does director payroll work?  

Usually, directors' compensation is determined either monthly or annually as a percentage of the company's profits. The director receives this sum in addition to their regular income and perks when it is added to the payroll. There are also bonuses and other rewards that can be earned by directors.

4. Do I need to register for PAYE as a director?  

If you receive salaries, bonuses, etc as a director of a limited company, you are required to register for PAYE. To register for PAYE, you must also provide HMRC with information about any benefits you may be eligible for.

5. Can a director be on the payroll?  

Yes, directors can be paid and get the same benefits as regular employees. However, they are not required to perform the same duties as regular employees. Directors have to be paid through the company's PAYE scheme, and they should also be compensated differently from ordinary employees.

6. Are directors employees if not on payroll?  

It is also possible for directors to be employed by the company through a contract or by holding shares in the company. The payments can also be made through a bank account for the company, or through another method not covered by PAYE.

7. What does the Basic Director Payroll Package include?  

Our basic package includes:

  • Calculation of director's salary, benefits, and allowances
  • Tax and National Insurance deduction calculations
  • Preparation and issuance of annual payslips
  • RTI/FPS monthly submission with HMRC

8. How does the Comprehensive Director Payroll Management Package differ? 

The Comprehensive Package offers detailed consultation, thorough calculations, ongoing advisory support, and a comprehensive approach to director compensation.

9. Is the annual director payroll process time-sensitive?  

Yes, directors' compensation must be paid on time and accurately, to comply with the law.

10. Can I handle director payroll on my own?  

It is possible, but it is not recommended to do so. Our packages offer expert assistance to ensure that accurate calculations, deductions, and compliance are met during the process.

11. How do I start with your Director Payroll services?  

You can choose the package that suits your needs, follow the instructions to purchase, and our team will be more than happy to assist you with the whole directors' payroll process.

You can contact us if you need additional information or assistance with Director Payroll. Keeping your director compensation process compliant is our goal. Get a quote now!

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