In my understanding of this the director would be required to file a personal tax return as in self assesment. The limited company would be required to complete a corporation tax return. The director would then have to declare any wages up to the £11,500 threshold and then declare any dividends taken and this would then calculate the entire tax return and how much precentage was due as tax.
The confusion come in when it is stated that a company should be registered on a paye scheme if it has any employees.
But as I am pretty damn sure the director would need to undertake a SA this must surely cancel out paye for him and only on any staff he employs.
Ps this is what it says on gov.uk
Directors are classed as employees and pay National Insurance on annual income from salary and bonuses over £8,164.
Contributions are worked out from their annual earnings rather than from what they earn in each pay period.
There are different rules for tax on dividends.
Companies also pay employer’s National Insurance on directors’ salaries. This applies even if you’re the director of your own company running payroll and the only employee.
So in my understanding of this, if you are earning over £8164 per year you would pay NI and employers NI so you would then need a PAYE scheme, but in the case of £500 per month NO.