If organisation has only employee working for 16 hours now and in the future is going to b the sameDo we have to register for PAYE in above case. Is it mandatory to do so
Employee is not working anywhre and this is the only employment and is paid say minimum wage of £7.50 per hour from 1st April 2017 and employeed is aged 30 years old
Weekly wage is £120 per week for 52 weeks a year
Please help
Replies (5)
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Probably. But you don't give enough information.
What is the hourly rate of this employee?
Will they have employment elsewhere?
Probably. But you don't give enough information.
What is the hourly rate of this employee?
Will they have employment elsewhere?
... and presumably, you mean 16 hours a week for every week in future. Or just tell us the weekly or monthly gross pay.
Over LEL for both this year and next so I would say the answer is definitely yes if paying them £120 per week.
Just to confirm - Yes, you do need to register for a PAYE scheme and file an RTI return every week on or before the payday (unless you actually pay him once a month, in which case you need to submit a return only once a month) because his pay is over the NI Lower Earnings Limit (of £113 a week in 2017/18), even though no tax or NI contributions will be payable.
Just a thought - if you were to pay him for only 15 hours a week (15 @ £7.50 = £112.50), you would not have to bother with PAYE and RTI.
You really need to get set up with a PAYE scheme. if you pay any addition as well such as holiday pay then it will take you well over. Better to get it in place at the outset.