Worth registering my new Ltd Co for PAYE?

[Wanderer]

Extract 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 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!).

Wow, so you had an argument with the person on the Employer Helpline and got them to contradict what HMRC's written guidance says.

Good luck with that one but I can't help but think that it will come back and bite you.

[GazCol]

Wow, so you had an argument with the person on the Employer Helpline and got them to contradict what HMRC's written guidance says.

Good luck with that one but I can't help but think that it will come back and bite you.

To be fair, the written guidance Craig quoted is only true if a PAYE scheme is already in place.

If you're a new company and you have no employees earning above the LEL threshold, you do not have to be PAYE registered and as a result, do not have to do RTI submissions.

If you're an existing company, currently have no employees earning above the LEL threshold, but have previously, you need to deregister from PAYE otherwise you have to do RTI submissions.

The HMRC guidance quoted is in respect to companies that have employees paid above the LEL threshold and employees paid under the threshold. As these companies have to be PAYE registered submissions have to be done for all employees.

Further information here.

That's the biggest problem with HMRC's web
page. The guidance doesn't make sense if you look at one page in isolation. You would think, from Craig's link that it was black and white. However that is only advice for current PAYE scheme operators.

[Contreras]

Wow, so you had an argument with the person on the Employer Helpline and got them to contradict what HMRC's written guidance says.

Good luck with that one but I can't help but think that it will come back and bite you.

Not a contradiction - the helpline would have been agreeing that the co. did not need to register for PAYE and that page is on how to operate PAYE, so it doesn't apply.

Basically what GazCol and UKCA said (except the piece about paying family members to clean your office ).

[GazCol]

Not a contradiction - the helpline would have been agreeing that the co. did not need to register for PAYE and that page is on how to operate PAYE, so it doesn't apply.

Basically what GazCol and UKCA said (except the piece about paying family members to clean your office ).

I'd just like to distance myself from the family members comment... Haha. Although I think what UKCA meant was if you have employees that are paid above the LEL threshold in another job and are employed by you, you have to also run a PAYE scheme, even if all employees are paid below the LEL threshold. At least that's what I hope he meant...