Payroll/PAYE Question

T.C.

I have a new client who is in a bit of a muddle with an ex-employee. She took on this person, who was not previously working, and paid her £91.68 per week for 3 months, then let her go. She did not register as an employee so did not take any tax or NI from her. The ex-employee has found another job and is demanding a P45. I suggested that she offer a statement of pay, but the ex-employee is demanding a P45. Obviously she can't have one. What do you suggest, bearing in mind the amount paid to her. :confused1:

T.C.

She as not registered as an employer, so no reference number!
I have told her to give a statement of pay and leave it at that, afterall she was below the PET so it should be ok, shouldn't it!?!

groundy

Sorry just realised so deleted post. All I would suggest is for your client to explain that as she earned so little she is not entitled to a P45 and that a statement of earnings is all she would get.

Would also explain that it is not that important given the closeness to end of tax year.

A-Vic

T.C. wrote: »

I have a new client who is in a bit of a muddle with an ex-employee. She took on this person, who was not previously working, and paid her £91.68 per week for 3 months, then let her go. She did not register as an employee so did not take any tax or NI from her. The ex-employee has found another job and is demanding a P45. I suggested that she offer a statement of pay, but the ex-employee is demanding a P45. Obviously she can't have one. What do you suggest, bearing in mind the amount paid to her. :confused1:

If they really dont want to register as employers tell them to get the employee to complete a P46 and send it to the tax office as they hadnt paid and tax or national insurance it wouldn't make a difference.

T.C.

Well I guess that is what the new employer will do anyway. Thanks.

A-Vic

:thumbup1:

T.C. wrote: »

Well I guess that is what the new employer will do anyway. Thanks.