Calling PAYE experts -Is a nil return acceptable despite a small salary being earned.

pirate Registered Posts: 469
Sort of related to an earlier post. but I am going around in circles a bit with this.

It is my understanding that you should file end of year returns even if the salary taken is below the LEL. Is this correct?

I have a client who deregistered from PAYE in March as he was no longer needing to pay himself.
After this he filed a nil return using the HMRC web site link. Its a Limited company no employees.

He did however take a small salary of £3000.
Upon speaking to HMRC they say that since he only earn’t £3000 in the whole year filing a nil return is acceptable. (it was technically slightly over the LEL at the time of taking). As its nil and he owes nothing then this is acceptable.

As he has deregistered his scheme is no longer open so to file annual returns would mean reopening it and so much less painful this way.

Just wanted to double check this before May 19th deadline.


  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    It is my understanding that a salary under the LEL means no P35 needs filing. That's how I've always operated in the past.
  • pirate
    pirate Registered Posts: 469

    thanks so much...this is what I was hoping for.

    I can finally finish off my work for this client
Privacy Policy