Earn Under PAYE threshold - Do you need to register for PAYE??

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JamesB
JamesB Registered Posts: 51 Epic contributor 🐘
in General accounting discussion
Hi all, happy new year!!

One question that keeps bugging me is:

2 directors set up a limited company and will be paying themselves say £7,500 per annum.

Does the company need to register for PAYE?

If the answer is yes then under the new PAYE real time am I right in saying that from April 2013 the monthly salary payments will have to reported to HMRC each month, even if they are under the threshold?

Thanks as always for any responses.

James

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  • BIG WAL
    BIG WAL Registered Posts: 133 Dedicated contributor 🦉
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    Yes. Where pay is above the LEL - currently £5564pa for 2012/13 - they get NI credit but no
    deductions are made. To allow HMRC to credit their record with the notional NI, you need to register forPAYE and complete a P35 year end return.

    With RTI you have to record ALL payments, even where under the LEL, and even for casuals etc. So
    you may as well register now for PAYE anyway.

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