Like most small to medium practices we have a lot of limited companies where the directors take minimal salaries.
One of the new bits of information now required on payrolls is the contracted/usual hours for each employee / directors.
The dilemma I have (based on trying to second guess what HMRC will be looking at) is;
1. Do we record the directors contracted/normal hours (how many directors have contracts as such??) meaning that they are receiving lower than the minimum wage - I would think the answer is a definite NO here
2. Do we put say 15 hours per week? But this would mean that most would still receive an hourly rate well below a commercial level. Also what if the directors working hours could be proved, say they are a private doctor?
3. Do we say the hours are not known and just put a 0 in the relevant box.
Are HMRC bothered about this? If they are which of the above options are more likely to cause 'issues'?
I would appreciate your thoughts on this
PS. I'm sure most of you are sufficiently client focused, but please no answers like 'they should already be paid the commercial rate'.