My payroll has just run - should I now pay myself the Net amount?

Tempo will run your PAYE payroll once per month and automatically create a payslip for you.  However this does not necessarily dictate the amount you should pay yourself.

Usually a director will pay themselves more than the Net amount on the payslip as each payment will usually comprise of three elements:

• PAYE salary (the Net amount on the payslip)
• Expense reimbursement (any amounts owed to the director by the company for expenses)
• Dividend payment (what ever is left will later be marked as a dividend payment)

It is not necessary to calculate the above on a monthly basis as Tempo will keep track of what each payment is covered by in the background.

So how much should I pay yourself?

We advise leaving enough funds in the bank account to cover any taxes your company may owe.  After this, any additional amount you leave in the company is down to the Director's preference.

Please see this section for further advice.