PAYE scheme registration for director of new company?

GinnyBee
GinnyBee Registered, Tutor Posts: 131 Dedicated contributor 🦉
in General accounting discussion
Afternoon all, I might be having a Friday afternoon moment here.....

A new client of mine has just set up a company and has received a letter from HMRC telling him he might meed to set up a PAYE scheme. He and his wife are the only directors of the company and there are no employees. He will be paid at a level so he's under the limits but gets his NI credits etc. My query is this, does he need to register as a PAYE scheme? My brain is buzzing and I can't seem to extract the correct info!!

If it makes a difference he also has an LLP which makes no profit and pays no salary or anything to him. The thing which might mean he has to is that he might be being made redundant before the end of the current tax year from his old job, which he is currently on a sabbatical from.

Thought anyone? Think I should have started my weekend at lunchtime this week :-)

Comments

  • sloshed
    sloshed Registered Posts: 100 Dedicated contributor 🦉
    Hi

    You need to register for a PAYE scheme as the earnings are above the LEL (Lower earnings limit).

    You may want to also consider the special rules when an director is appointed during the year with regard to NIC.

    Hope this helps

    Brian
  • Newbie
    Newbie Registered Posts: 229 Dedicated contributor 🦉
    Yes I believe you need to register, I do this online (link) http://www.hmrc.gov.uk/paye/intro/register-email.htm
  • LynWest
    LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
    Hi there just to confirm what you have already been told above, you do have to register as the earnings are at the LEL level. but if they are just literally at the 0% rate and therefore nothing to pay to HMRC then you need to file a nil declaration once a quarter, to stop HMRC sending you any letters about overdue deductions. At year payroll year end you will also have to file a P35. Hope this helps :)

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