PAYE Limited company is it compulsary?

It is my understanding that the company must be registered for PAYE as the directors are still employees whether or not they take a salary.

I would suggest requesting the PAYE scheme to be on an annual basis explaining that no they are non salaried directors and no other employees and then submit a nil P35 at year end.

PAMDILL wrote: »

I have several limited companies which have directors and trade but no wages paid. I checked with HMRC a few years ago and they stated did not have to register as an employer.

Totally agree - We have a number of limited companies on the books however only a few of them are reg for salary reasons not all of them have to be :001_smile:

Paul makes a very good point. It is highly likely that close company directors are, if nothing else, reimbursing expenses that are P11D reportable. Obviously a dispensation would cover most of them but you cannot submit a dispensation application without a PAYE scheme in place.

That said, if there is no salary and only s.336able(?) expenses are reimbursed and the directors do not want a PAYE scheme set up then I would be inclined not to do so.