Knowledge Centre Category: P

Payroll

Payroll is the process of calculating and paying directors' remunertion and employees' wages and salaries, deducting income tax and National Insurance through the PAYE system, and reporting these to HMRC. Green Accountancy provides a fully managed payroll processing service for companies, charities and other organisations.

Personal Allowance

The personal allowance is the amount of income an individual can earn each year before paying income tax, currently £12,570 (2026/27). For owner-managers, taking a salary up to the personal allowance and topping up with dividends is typically the most tax-efficient approach to profit extraction.