New Ltd Company registered now but been paid since summer - am I going to pay a penalty to HMRC?

MayaBee

Hi there!

I am the only director and employee in my company as I am a contractor getting paid from agencies.
Am I going to face a penalty due to HMRC for late PAYE if I've been getting paid since July but I set up a company just now and I will report previous salaries now? I've been paying myself below the national threshold to avoid high Corporation Tax.
Going forward, I will submit FPS, etc. on time. I was just not aware of the whole process before.

Thank you for your help!

Maya

burg

Firstly I'm confused!

When was the company formed?
A - July or prior?
B - Now?

If A then fine just register and file the RTI required to get up to date. Unlikely to receive a penalty.

If B then you are rather stuck. If the company has only just been formed then it cannot have earned any money prior to its formation date as it did not exist. The money earned prior will need to be declared in a different format such as self-employed income.

TreadStone

Secondly, I'm also confused.

I simply don't understand why a company director would want to register on an AAT forum, particularly for Licensed Members, and post a question such as this.

Why not engage an Accountant in the first place ??

MayaBee

TreadStone said:

Secondly, I'm also confused.

I simply don't understand why a company director would want to register on an AAT forum, particularly for Licensed Members, and post a question such as this.

Why not engage an Accountant in the first place ??

Hi TreadStone,

I'm studying towards my Level 2 atm as well as I am a company director - I hope this is fine. I want to be my own accountant.

MayaBee

TreadStone said:

Secondly, I'm also confused.

I simply don't understand why a company director would want to register on an AAT forum, particularly for Licensed Members, and post a question such as this.

Why not engage an Accountant in the first place ??

burg said:

Firstly I'm confused!

When was the company formed?
A - July or prior?
B - Now?

If A then fine just register and file the RTI required to get up to date. Unlikely to receive a penalty.

If B then you are rather stuck. If the company has only just been formed then it cannot have earned any money prior to its formation date as it did not exist. The money earned prior will need to be declared in a different format such as self-employed income.

Hi Burg,

Thank you for your comment!
Yes it is option A, I put a date for the start of the company as July but nothing was recorded since then hence why I am afraid of the penalty. The PAYE HMRC tools software asks to tick to state that it is a late submission which might incur a penalty.
I'm about to pay myself wages for this month so as you advised I will just submit all the details under this submission to get up to date.

Thanks a lot!

TreadStone

MayaBee said:

TreadStone said:

Hi TreadStone,

I'm studying towards my Level 2 atm as well as I am a company director - I hope this is fine. I want to be my own accountant.

That's fair enough , maybe worth pointing that out in the opening post ?

burg

MayaBee said:

Yes it is option A, I put a date for the start of the company as July but nothing was recorded since then hence why I am afraid of the penalty. The PAYE HMRC tools software asks to tick to state that it is a late submission which might incur a penalty.

I personally would not use Basic PAYE tools. I'd look at the likes of Brightpay, Moneysoft and others. You will find it much easier and the costs are not that high at all. In fact Brightpay may even be free depending on the number of employees.