PAYE Limited company is it compulsary?

Poodle

Hi

If you have a close company with directors having income elsewhere so not taking a salary, only dividends, but they are taking off business expenses that would not be reported on a P11d from the company, does the company still have to be registered for PAYE?

Poodle

groundy

It is my understanding that the company must be registered for PAYE as the directors are still employees whether or not they take a salary.

I would suggest requesting the PAYE scheme to be on an annual basis explaining that no they are non salaried directors and no other employees and then submit a nil P35 at year end.

PAMDILL

I have several limited companies which have directors and trade but no wages paid. I checked with HMRC a few years ago and they stated did not have to register as an employer.

A-Vic

PAMDILL wrote: »

I have several limited companies which have directors and trade but no wages paid. I checked with HMRC a few years ago and they stated did not have to register as an employer.

Totally agree - We have a number of limited companies on the books however only a few of them are reg for salary reasons not all of them have to be :001_smile:

PaulPSB

If there are any BIK requiring P11D then the company will need a PAYE Ref even if no salaries so there is a record to post the P11D against. :001_smile:

deanshepherd

Paul makes a very good point. It is highly likely that close company directors are, if nothing else, reimbursing expenses that are P11D reportable. Obviously a dispensation would cover most of them but you cannot submit a dispensation application without a PAYE scheme in place.

That said, if there is no salary and only s.336able(?) expenses are reimbursed and the directors do not want a PAYE scheme set up then I would be inclined not to do so.

Poodle

Thanks guys

I will leave as is for the mo and just wait until they want to pay for their personal tax returns through the company:001_smile:

Poodle