This guide is specifically for Limited Companies. Due to the unique business structure of a limited company, take-home payments must be handled differently than they are for sole traders. Joy Pilot helps streamline this process by supporting the correct way to record these payments. In this guide, we’ll walk you through how to record take-home payments properly—an essential part of managing your company’s finances accurately and compliantly.
💡 If you're a Sole Trader:
These guides are designed specifically for you:
These will walk you through how to record personal payments, set up bank accounts, and keep your records clean and compliant.
Take Home Payments: An Overview
In Joy Pilot, the 'Take Home Payment' feature is designed to facilitate the various ways you can pay yourself from your Limited Company.
Limited Companies operate as separate legal entities, meaning business funds are distinct from personal finances.
Understanding the payment options ensures you manage your payments accurately and in compliance with local business regulations.
Step-by-Step Guide to Recording Take Home Payments
Follow these steps to record a take home payment in Joy Pilot:
Navigate to Take Home Payments:
Click on the ‘Business’ dropdown menu located on the grey top navigation bar.
Select ‘Take Home Payments’ from the list.
Adding a New Payment:
Navigate down to the ‘Add New Payment’ panel.
Fill in the required details:
Bank Account: Choose the bank account from which the funds will be paid.
Date: Specify the date of the payment.
Recipient: Enter the name of the person or entity receiving the payment.
Payment Type: Select the type of payment (for further clarification see section "Types of Take-Home Payments" below).
Amount: Enter the payment amount.
Click ‘Save’ to record this payment.
Managing Take Home Payments:
The payment you've just added will appear in the ‘Take Home Payments’ list which is below the section where you add a new payment. Here you can:
Sort: Organize the list by date, recipient, type of payment, or amount by clicking on the respective column headers.
Edit: If you need to amend any details, click the ‘Edit’ button next to the payment, make the necessary changes, and then click ‘Save’ to update.
Delete: To remove a payment, click the ‘Delete’ button next to the relevant record.
Use the ‘Find’ button to search for specific payments based on date, recipient, payment type, or amount.
Exporting Payment Data: Easily export your take-home payment data from Joy Pilot for record-keeping or reporting purposes. Simply click the blue 'Export Tools' button located on the right-hand side of the payment list area to download your data in various formats.
Types of Take-Home Payments
Take-home payments can be categorized in different ways depending on your company's structure and location. The table below outlines the various payment types and their applicability in different countries.
Payment Type | UK | NZ |
Net Salary | Yes | Yes (with PAYE) |
Dividends | Yes | Yes |
Expense Reimbursement | Yes | Yes |
Director’s Loan | Yes | Yes |
Drawings | No | Yes |
Net Salary: If you pay yourself a salary, it should be recorded appropriately. (In NZ, PAYE applies to salaries.)
Dividends: Available when the company has sufficient profits.
Expense Reimbursement: Used when reimbursing yourself for company-related expenses.
Director’s Loan: When a director takes or repays a loan from the company.
Drawings (NZ only): Personal withdrawals from company profits, different from a salary.
In Summary
Recording take-home payments in Joy Pilot helps Limited Companies efficiently manage personal withdrawals and payments. By following these steps, you can ensure your records remain accurate and up-to-date. Whether you're paying yourself a salary, handling dividends, or managing expense reimbursements, Joy Pilot makes the process seamless.
Explore Further
Interested in learning more about managing your business finances with Joy Pilot?
For more details on related topics such as managing payroll, expense reimbursements, and invoicing, visit our Day-to-Day Accounting section here."