PAYE legal requirement for Limited Company

pirate Registered Posts: 469

I have just been talking to HMRC regarding an issue on PAYE with a client.

The lady mentioned that a Limited Company has a legal requirement to register for PAYE.
I clarified this by saying even if the sole employee (director) takes no salary.
She said yes.

I wasnt aware of such legislation is there such a requirement.



  • groundy
    groundy Registered Posts: 495
    Not that I'm aware of. In fact HMRC had the opposite view when they were paying the incentive payments and were more than happy for dormant companies not to have a PAYE scheme
  • pirate
    pirate Registered Posts: 469
    this is what I thought re legislation
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    Agree with groundy. The woman you spoke to was wrong. Quel surprise.
  • Rachel
    Rachel FMAAT, AAT Licensed Accountant Posts: 349 Dedicated contributor ? ? ?
    The only problems I have are with PAYE, it takes at least 15 mins to get through to someone, drives me insane
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