Admin support -student paid under £400 per month -RTI?

Admin support -student paid under £400 per...

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I have a client who has been using her student daughter to help her with her admin and typing . She has been paying her £200-£400 per month some months depending on what hours she puts in and is only now disclosing this after I have been filing her RTI for the last 12 months .Should such payments been put on RTI reports or is it It possible that you do not use it for such payments but just use it for the director''s salary. Thanks

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By Kirkers
12th Dec 2014 12:53

If you have a PAYE scheme in place, then yes all payments must have been disclosed.

 

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Euan's picture
By Euan MacLennan
12th Dec 2014 13:52

Agreed

You are perhaps confusing this with the situation where all the employees are paid less than the NI LEL (£464 a month in 2013/14, £475 a month in 2014/15) and have no other jobs or pensions, in which case you don't need a PAYE scheme and hence, have no obligations under RTI.

However, there is no exemption from applying the PAYE procedures (including reporting under RTI) for employees paid under the LEL when there is a PAYE scheme in existence.

Strictly speaking, you should submit an Earlier Year Update for 2013/14 (using HMRC's Basic PAYE Tools if your own software does not have the facility), but as no deductions are involved (I assume that the daughter had no other job), I wouldn't bother.  Just enter her on this year's payroll and leave it to the next FPS to report her YTD figures.  Make sure that she completes a Starter Checklist and ticks Box A or B.

Incidentally, there is no longer any special PAYE treatment of students.  They are treated the same as any other employee.

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Replying to ireallyshouldknowthisbut:
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By DAKINS
12th Dec 2014 18:08

Great, many thanks -I had thought I had read somewhere that due to the PAYE scheme bring set up , it was compulsory to report . So are you saying although 13/14 already filed , I could still put through the payments in the accounts for 13/14 or just for 14/15 ?

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Euan's picture
By Euan MacLennan
12th Dec 2014 18:20

OFHS

Put the payments through the accounts when paid.

Only put the payments in 2014/15 through the 2014/15 payroll.  If you think it is worth the effort, put the payments in 2013/14 through an EYU for 2013/14.

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By chatman
12th Dec 2014 18:31

@Euan re LEL

@Euan - the gov.uk page says the 2014/15 NI LEL is £481/month. Is that different to the LEL you mentioned above?

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Replying to Tax Dragon:
Euan's picture
By Euan MacLennan
15th Dec 2014 14:29

Yes

chatman wrote:

@Euan - the gov.uk page says the 2014/15 NI LEL is £481/month. Is that different to the LEL you mentioned above?

Yes, it is different because I got it wrong!  I was a year adrift - £464 in 2012/13, £473 (which I mis-typed anyhow) in 2013/14 and £481 in 2014/15.

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By chatman
15th Dec 2014 16:29

Thanks Euan

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