PAYE Reference

Directors' remuneration below Primary Threshold

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Where a company has not registered a payroll for 2015/16 but the directors wish to include having received a salary below the Primary Threshold of £8,060 in their Self Assessment Return can that be done without the Employer's Reference field being completed.

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RLI
By lionofludesch
22nd Jan 2017 17:55

Depends how far below and whether they have other jobs.

If they're wanting it to cover their NI qualification, no. You'll need RTI, so you'll need an employer's reference.

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Euan's picture
By Euan MacLennan
22nd Jan 2017 18:36

The simple answer is Yes, you can - either by quoting a made-up PAYE reference like 000/unknown or by including it as Other Income. This is what you would do if the salary is no more than the NI Lower Earnings Limit of £5,824 and the directors had no other jobs or pensions.

If the salary was £5,824 or more or if either director had another job or pension, the company would have been required to register for PAYE, so you would be opening a can of worms if you include any salary.

I assume that by "having received a salary", you mean that the directors were actually paid by the company (or at least, the salary was credited to their loan accounts before 5th April 2016) and that you are not seeking to rewrite history.

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Replying to Euan MacLennan:
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By ckeegan
23rd Jan 2017 15:15

Thanks for that. The software does not check the validity of the reference, just insists that the field is completed so that will allow an entry for the LEL.

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