Originally posted by Craig at Nixon Williams
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Worth registering my new Ltd Co for PAYE?
Collapse
X
-
-
Originally posted by GazCol View PostThat's not right, an RTI submission only needs to be done if you're PAYE registered and you do not have to be PAYE registered if all employees earn below the LEL threshold.
"You need to report the payment details of all employees you pay, no matter how much you pay them - even those earning below the Lower Earnings Limit (LEL), or those paid just once a year."Comment
-
Originally posted by Craig at Nixon Williams View PostIt wouldn't cost him anything in NI - the NI threshold per employment not overall.
CraigComment
-
Thanks all, I'm trying to get as much info as I can being new to all this.
Originally posted by northernladuk View PostYou are going to get an accountant aren't you?
But other than doing a flat rate VAT return online (I think I can handle this myself), I don't know if I'll need an accountant at least until next year when I find out if my contract will be extended or if I start a new role. This was why I asked about PAYE as for that I think I'd need to get an accountant in from the start and with the money I'll be earning to begin with I'd prefer to avoid this if possible (no offence to any accountants reading this!)Last edited by rm55; 12 September 2013, 15:25.Comment
-
Originally posted by Craig at Nixon Williams View PostExtract from here: HM Revenue & Customs: What to report
"You need to report the payment details of all employees you pay, no matter how much you pay them - even those earning below the Lower Earnings Limit (LEL), or those paid just once a year."
I think GazCol's point was that in some situations you don't need to register for PAYE, in which case would the above even apply? HMRC's guidance is - as ever - as clear as mud on this.
Over here, it says this:
Before you pay your first employee for the first time, you must check whether you need to operate PAYE. The guide 'How to register as an employer' tells you when you need to register and how to register.
As soon as you first employ someone, you will need to register as an employer with HMRC if any of the following is true:
you're paying them at or above the PAYE threshold
you're paying them at or above the National Insurance Lower Earnings Limit
the employee already has another job
they are receiving a state, company or occupational pension
you're providing them with employee benefitsComment
-
Originally posted by Craig at Nixon Williams View PostExtract from here: HM Revenue & Customs: What to report
"You need to report the payment details of all employees you pay, no matter how much you pay them - even those earning below the Lower Earnings Limit (LEL), or those paid just once a year."
I'm posting from my phone at the moment but I will link to HMRC when on an easier device to post from.Comment
-
I see your point now.
One benefit of having a PAYE scheme allows you to sort out your tax during the tax year rather than waiting until the self-assessment is submitted. He will have paid tax on his prior earnings and will get a refund of this if staying below the personal allowance – this will come quicker if he uses a PAYE scheme.
If he is going to claim for certain expenses then these will need to be reported on a P11d and a PAYE scheme will need to be opened in order to complete this.
CraigComment
-
Originally posted by Craig at Nixon Williams View PostExtract from here: HM Revenue & Customs: What to report
"You need to report the payment details of all employees you pay, no matter how much you pay them - even those earning below the Lower Earnings Limit (LEL), or those paid just once a year."
It takes just 1 employee earning above the LEL to bring all the other employees under RTI including the £5 a week you pay to your son/daughter for cleaning your office (that's if you employ family members in your ltd co).Comment
-
Originally posted by UK Contractor Accountant View PostI have had this argument out with the Employer Helpline which confirmed that if all you employees are earning less than the LEL limit you do not need a PAYE scheme in place or report under RTI (assuming you hold signed P46's for all staff!).
It takes just 1 employee earning above the LEL to bring all the other employees under RTI including the £5 a week you pay to your son/daughter for cleaning your office (that's if you employ family members in your ltd co).'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by Craig at Nixon Williams View PostI see your point now.
One benefit of having a PAYE scheme allows you to sort out your tax during the tax year rather than waiting until the self-assessment is submitted. He will have paid tax on his prior earnings and will get a refund of this if staying below the personal allowance – this will come quicker if he uses a PAYE scheme.
If he is going to claim for certain expenses then these will need to be reported on a P11d and a PAYE scheme will need to be opened in order to complete this.
CraigComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment