PAYE Help please

mastrypuncher

A friend of mine has asked me to help him out. He incorporated his company via companies made simple at end Aug 2010, knowing very little of what is involved. He is the only director, one man band company. To his knowledge he has never registered for PAYE. He has this week given me correspondence from HMRC dated January this year. The first is a letter detailing new employer registration and reference numbers dated 27th Jan. The next is a penalty notice dated 30th Jan for non filing of PAYE end of year returns from tax year 2010-2011, for £800.00.

So I am wondering, why are HMRC imposing a retrospective penalty for tax year 2010-2011 when he has only registered in January this year? His income tax for tax year 2010-2011 was filed by self assessment.

pirate

It is possible that the letter dated January 27th detailing new employer registration details is a duplicate.
Perhaps if he requested these details again or tried to register as an employer again.

He must have registered as an employer to get the new employer registration in the first place. I think. He could have paid for this service through companies made simple.

Has he taken a salary? Either before April 2011 or between April 6th 2011 -5th April 2012.
I am assuming end of year was filed for this year, otherwise there will be another penalty.

mastrypuncher

No, he hasn't taken a salary, just basically taken out what he has put into the business but does not have an overdrawn DLA. Problem is tho, he is in the territorial army which is classed as having another job, so should have registered for PAYE and submitted a P35.

Late submitting this years P35 too as I have only just received his PAYE ref no's :-(

Rozzi Rainbow

pirate wrote: »

He must have registered as an employer to get the new employer registration in the first place. I think. He could have paid for this service through companies made simple.

This has just cleared up something that had been puzzling me! We took on a new client earlier this year, who had set up his own Ltd. I asked him if he'd registered for PAYE, which he said he hadn't, so I registered him. A few weeks later he brings me in a whole pile of paperwork including the New Employer Details sheet - which was different to the scheme I'd set up for him, which I'd had sent straight to our address. I believe he used Companies Made Simple to originally incorporate, so it looks as though they also registered him for PAYE automatically without him realising.

What then puzzled me further, is that you have to give your Company Registration number when you register for PAYE, so surely when I applied for him to register, HMRC should have realised that Company was already registered! Anyway it all got sorted, a very helpful person at the Employer Helpline cancelled the first scheme (as I had already used the scheme I set up, before I realised there was two) and made a note that it had been a duplicate.

Sorry to highjack this thread, I'm just pleased one of my puzzling situations has been clarified.