PAYE confusion when going back to permie while Ltd is still ticking for a while

[Chart Accountancy]

My "cloud" accountants said, I can't be a director and not be PAYE registered. So I assume I would need to start liquidation proceedings if I wanted to deregister and get a P45? I'm not ready for that yet.

Sounds like I will just wait for the first pay slip and phone up HMRC for more suitable tax codes. As people say, I will still need to do SA anyway as I owe HMRC dividend tax.

Thanks for clarifying so quickly , guys

This used to be true when all reimbursment of expenses needed to be declared on a P11D or covered by dispensation and as in most cases as a director you incur out of pocket expenses, a payroll is required for the P11D submission. However, from the 2016-17 tax year the reporting of the reimbursment of business expenses has been removed. Therefore, you will only need the payroll open if you have taxble benefits to report. Even if this is the case, you can still be issued a P45 should you stopped receiving a salary from your company. If you give the P45 to your new employer, they will update your tax code on the next month payment run. This is cleaner than trying to explain this to HMRC over the phone as all that HMRC could do is to transfer your jobs so your permanent employment is your primary job against which you apply the personal allowance but it is likely they will issue a W1M1 tax code so it is best to get a P45 from your company.

[Michael at BI Accountancy]

When I went through this last year, HMRC wouldn't deal with the issue until the first RTI submission was received from the new employer.

Ah yes sorry, HMRC will require the first RTI submission as without it they don't know who your new employer is (and where to issue the new tax code to)!

[fidot]

As for waiting, really you should get onto HMRC ASAP. They will then issue the updated tax code to your employer for them to use on the next RTI submission. No point waiting if the code is wrong.

When I went through this last year, HMRC wouldn't deal with the issue until the first RTI submission was received from the new employer.

[cojak]

Deregistering from PAYE is not the same as closing down your company. You're simply telling HMRC that you have no employees. You can still have a director, who draws dividend income (which is not PAYE income)

Absolutely agree with both Michael and SE.

Go back and explain this to your idiot accountant.

[ladymuck]

Deregistering from PAYE is not the same as closing down your company. You're simply telling HMRC that you have no employees. You can still have a director, who draws dividend income (which is not PAYE income)

[Michael at BI Accountancy]

My "cloud" accountants said, I can't be a director and not be PAYE registered. So I assume I would need to start liquidation proceedings if I wanted to deregister and get a P45? I'm not ready for that yet.

Sounds like I will just wait for the first pay slip and phone up HMRC for more suitable tax codes. As people say, I will still need to do SA anyway as I owe HMRC dividend tax.

First part is a load of rubbish.

As for waiting, really you should get onto HMRC ASAP. They will then issue the updated tax code to your employer for them to use on the next RTI submission. No point waiting if the code is wrong.

[Ned]

My "cloud" accountants said, I can't be a director and not be PAYE registered. So I assume I would need to start liquidation proceedings if I wanted to deregister and get a P45? I'm not ready for that yet.

Sounds like I will just wait for the first pay slip and phone up HMRC for more suitable tax codes. As people say, I will still need to do SA anyway as I owe HMRC dividend tax.

Thanks for clarifying so quickly , guys

[Michael at BI Accountancy]

As Ladymuck says - If you want to make things nice and easy, end your employment with your Ltd company and issue yourself a P45 which your new employer can use.

HMRC gets confused to say the least when there is effectively two employments going on. Potentially you could get them to allocate all your allowance to your perm tax code and BR your limited company employment.

Or sort it all out on the end of year SATR.

[fidot]

You don't need to wait until doing your self assessment.

Once you have had your first payslip from your new employer, you can phone HMRC up and apportion your tax code across the 2 jobs in whatever amount you want.

They will ask a few questions about expected income from each of the employers and then send new tax notices to them both.

[SueEllen]

You do self assessment anyway so you can do it on your self assessment return

[ladymuck]

As you're still a Co Director, you can sort the tax out at the end of the year via your SAR.

BR code is what gets applied in the absence of a P45. So, you could deregister YourCo from PAYE and issue yourself a P45. IANAA so double check with your accountant.

[Ned]

Hey

I've taken a permanent role after contracting for 3 years. Same net revenue, so made sense to me. I want to have my ltd still ticking, so I'm still a director doing zero PAYE submissions. I'm basically doing zero submissions, because there isn't any to take out.

When I joined the company earlier this month , I didn't have a P45, so I filled in the new starter questionnaire and ticked:

C) As well as my new job , I have another job or receive a State or Occupational Pension

The company I'm working for now, is saying they until I quit that job, they will put me on BR tax code 20% and I will be responsible for paying what I really owe to HMRC.

This seems wrong. I just want to pay what I owe as I earn , and forget about it, you know PAYE? Anyone else have experience with this?