I have a client that did not have a PAYE scheme set up until April 12. He is now saying that he would like to go back to the previous year 11/12, and for a portion of monies taken to be categorised as payroll?!
I have told him that he did not have a payroll scheme and therefore did not pay himself through payroll. He has read on the internet that he does not need to register if he pays himself under the lower earnings limit.
Firstly, I am not happy to retrospectively go back and change records. Secondly, he was advised at the time to set up a payroll scheme, but did not wish to do this.
I do not see how he can go back and say £x amount was payroll when there will be no payroll year end reports to support this. This surely is for someone that only earns beneath the lower earnings limit. Not a company director who takes dividends from their limited company.
I am sorry if this seems like a silly question and appreciate any answers.