Question regarding PAYE

[youngguy]

Hi All

I thought I had the basics of ltd companies and accounting down, but I recently made an enquiry to my accountant in relation to RTI and his response concerned me. I've called for an urgent meeting to sit down and discuss with him and I want to make sure I am fully prepared, hence seeking views from those more knowledgeable than myself.

Quick background: been contracting quite a few years and have an accountant who I meet email with questions fairly regularly. Recently I raised the question of RTI in terms of monthly returns to HMRC and whether he would do these and the response was that my salary was below the PAYE threshold and as there is no scheme, my company is not within RTI. I was under the impression that all companies need to file returns under RTI? This has made me question whether I have been a little too trusting...

Additionally, I am now concerned that as a company Director I have not been meeting my responsibilities in relation to PAYE as his response suggests. I'm also not sure if there is a knock on effect for NI, state pension etc?

The thing is....I THOUGHT I was (or rather my accountant was) meeting PAYE requirements. I have checked my records and the initial company startup letter from my accountant which included my certificate of incorporation VAT registration details etc, he said that once the CT41G was submitted I may receive a PAYE reminder and if I did to put nil and send to him (along with PAYE return) each year.

I hold my hands up here - I clearly don't understand this aspect of accounting and running a Ltd as well as I thought I did.

Reading the HMRC guidance is around this is adding to my confusion so I'd appreciate a point in the right direction. The first time guides on here and PCG, mention registering for PAYE, but don't talk about the detail or specifics (ie what happens after registering) and the HMRC website areas I have read have only added to my confusion.

A point in the right direction, so I can better understand the subject before I meet my accountant would be much appreciated.

[Contreras]

Hi All

I thought I had the basics of ltd companies and accounting down, but I recently made an enquiry to my accountant in relation to RTI and his response concerned me. I've called for an urgent meeting to sit down and discuss with him and I want to make sure I am fully prepared, hence seeking views from those more knowledgeable than myself.

Quick background: been contracting quite a few years and have an accountant who I meet email with questions fairly regularly. Recently I raised the question of RTI in terms of monthly returns to HMRC and whether he would do these and the response was that my salary was below the PAYE threshold and as there is no scheme, my company is not within RTI. I was under the impression that all companies need to file returns under RTI?

If all employees are paid below Lower Earnings Limit then the company is 'outside' RTI, but also you won't get NI stamp towards state pension. Hopefully you are paying 'optimal' salary at the Secondary Threshold in which case yes RTI submissions will be required.

[Craig@Clarity]

Just to add to the headache (unintentionally; but rather to make you consider and be aware) if you don't have a PAYE scheme you won't be able to file a P11D.

If you've been advised to file a NIL PAYE payment each month or quarter by your accountant and you've been doing that, then you have a scheme set up which means you have the ability to file under RTI.

[youngguy]

If all employees are paid below Lower Earnings Limit then the company is 'outside' RTI, but also you won't get NI stamp towards state pension. Hopefully you are paying 'optimal' salary at the Secondary Threshold in which case yes RTI submissions will be required.

This is the concern for me. I'm going to go through my accounts this evening and double check the salary (which should be at least £5564 for 12/13, £5304 for 11/12 etc) as my initial meetings and correspondence covered the point of making sure I qualified for state pension etc.

Just to add to the headache (unintentionally; but rather to make you consider and be aware) if you don't have a PAYE scheme you won't be able to file a P11D.

I'm checking with the accountant on the status of filing these.

If you've been advised to file a NIL PAYE payment each month or quarter by your accountant and you've been doing that, then you have a scheme set up which means you have the ability to file under RTI

I was advised to send all paperwork, including anything to do with PAYE to him. I certainly don't get PAYE documents at all.

Looks like it may be time to change my accountant! Craig, might PM you to understand a little bit more about how monthly and yearly operations would work for me if I moved to intouch if that is ok.

[Craig@Clarity]

Give me a tinkle

[captainham]

‹Shameless plug for InTouch›...moving to them mid-year was very easy and incurred me no extra fees over the standard monthly payment. First year-end done in a very timely manner so I have nothing but praise.

I just uploaded my historical txns via their portal and job done.

‹Shameless plug ends›

[youngguy]

‹Shameless plug for InTouch›...moving to them mid-year was very easy and incurred me no extra fees over the standard monthly payment. First year-end done in a very timely manner so I have nothing but praise.

I just uploaded my historical txns via their portal and job done.

‹Shameless plug ends›

Thanks, I'm certainly looking at them (and one or two others) very closely. Have fired off a couple of emails to various ones asking about the monthly operations, but would welcome your view in terms of your own experience.

Currently I do monthly invoices and expenses spreadsheets (everything is filed electronically and paper copies kept) and then every quarter send all these details along with bank statements to my accountant for VAT. At the end of year there is a reconciliation and meeting to discuss the finer details via draft accounts. I always get an answer from my accountant when I ask a question, but what I don't think I am getting is him raising anything I may need to consider/be aware of (which I can't ask him as I don't know that I don't know it.....if that makes sense!)