HMRC Basic Tool, start date of Director

The director paid NIC threshold for 4 yrs. If register as E'er, is start date now or 4 years ago

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I am being thick.  The director has paid himself under the threshold for the last four years and therefore did not register as an employer. He is now registering as a employer and will be using PAYE basic tools to work out tax and NIC.  The software requires a start date. My advice to him is to record his employment date from the date he started his company (4 years ago), although I am uncertain if this will cause him further issues becuase he was not registered. The other alternative is to state he is a 'new starter' from 6th April 2017.

Am I correct in my advice and will HMRC raise a flag on him?

 

thanks

 

Replies (6)

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RLI
By lionofludesch
19th Apr 2017 13:15

Under which threshold was he paying himself?

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Euan's picture
By Euan MacLennan
19th Apr 2017 14:53

lionofludesch wrote:

Under which threshold was he paying himself?

Why does it matter whether it was the primary or secondary NIC threshold? ;¬)
Let us hope that it was under the NI Lower Earnings Level because if not, he has failed to file monthly RTI returns for the last 4 years.

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Replying to Euan MacLennan:
RLI
By lionofludesch
19th Apr 2017 15:02

To the question posed, it doesn't.

But, as you clearly full well know, there's a side issue.

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By AryaSoln
19th Apr 2017 17:04

Thanks, it was under the NIC threshold

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Replying to AryaSoln:
RLI
By lionofludesch
19th Apr 2017 17:15

So you said.

Primary or secondary ?

I'm sure you'll be aware why I'm asking.

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By Euan MacLennan
19th Apr 2017 17:32

OK - I will play ball.
If it was not more than the primary NIC threshold of £8,060 in 2015/16 and 2016/17, but was not under the NI Lower Earnings Level of £5,824, he would have had no NIC to pay (and assuming that it was his only job, no tax to pay), but he should have registered for a PAYE scheme and submitted monthly RTI returns because that is the law. It would also have been in his own interest to do so in order to report earnings above the LEL and thus, claim a qualifying year for the state pension.

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