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Does an employer need to register as one?

Does an employer need to register as one?

I am preparing a small SA return, and found out my client has taken on a part-time employee @ £50 per week, he's a student.  She's been paying him since last April and hasn't registered with HMRC, I have only found out now.  My question is, does she need to inform HMRC? I'm asking as I remember speaking with an HMRC technician a couple of years back when I took on a client with a late PAYE return, he had 1 employee paid £75 per week. The technician told me they did not need to know about him, and he didn't need to register as an employer because his employee's wage was below thresholds.  I found this a bit off as in theory, it could have been a second job subject to BR income tax (it wasn't, but you get my meaning). Could any of you smart people clarify this? I know it is a hectic time of year, but if you could take a minute it would be much appreciated, I'd rather not create any more paperwork than I have to.


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24th Jan 2013 21:17

Link to HMRC

This explains when an employer has to register

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24th Jan 2013 22:23

 I hope Shirley M's reply

 I hope Shirley M's reply answered your question to your satisfaction.  The link to the  "When you need to register" paragraph should resolve your query.  The second bullet point will hopefully answer your point ( very well made by you) about another ,since it is indeed ANY ONE ( or more) of the five bullet points which would force the employer to register.    The Lower Earnings Limit ( LEL) for 2012/13 is £107 per week, so your client is NOT required to register  (   UNLESS of course the student has other employment, as per the second bullet point). 

Feel free to post again if you are not clear, but I feel you will now be able to rest easy.

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25th Jan 2013 06:54

Here's another link of relevance

It is perhaps worth adding that the employer cannot know whether the employee has another job unless the latter certifies as such to the former.  The onus is on the employer to maintain records confirming that this has been positively confirmed, without which he is obliged to assume, whatever the facts of the matter, that the employee has another job that makes full use of personal allowances, and so deduct tax from all pay, which would in turn require a scheme.

Check out form P46.

With kind regards

Clint Westwood

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25th Jan 2013 09:15

Not retrospective but surely

with Real Time coming in employers will have to register everybody?

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25th Jan 2013 09:16


Will these rules change once RTI comes in, surely the revenue will need to know all amounts paid to individuals whether or not they reach the lower earnings limit, so that this information can be used for the universal tax credit assesssment

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By gg
25th Jan 2013 10:14

RTI doesn't change this

RTI is not changing the criteria for when a PAYE scheme should be registered, but once a scheme exists then every employee in that scheme must be included in the RTI submissions if they receive payments that are liable to PAYE and/or NIC, regardless of the amount.

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25th Jan 2013 11:51

@ Richard Willis

Agreed with gg. Have a look at:

If you print preview at 100% scale you will find the answer at the bottom of page 4.

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26th Jan 2013 16:33

Thanks for the advice, all looks okay.  Good points about RTI -  funny I was approached by a new client today who has his dad on his books @ £150 per month. He was in a hurry for payslips for his parents to apply for pension credit, so I just stuck in the basics to produce some but my payroll software would not let me process after January 2013. It kept throwing up the message "DOB is required to file with HMRC". I'm using QuickBooks payroll, and from what I gather it is RTI ready but there doesn't seem to be an option to turn online filing off...I'm changing software this year anyway, but just thought I'd mention it, seems like HMRC will be getting a lot of useless info from people who are not registered employers. 

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