Closing PAYE Schemes

 

Can someone tell me where I am going wrong?

 

Company directors pay themselves a salary of £624.00 per month by standing order. The amount puts them just below the point at which their company has to pay Class 1 employers contributions. There must be tens of thousands of such cases.

 

No payments are due to HMRC and we do a P60/P35 each year.

 

This is not a question about RTI.

 

We have been receiving letters from HMRC saying that there is no indication that we are operating PAYE and therefore they are going to close the scheme.

Further enquiry shows that they send this letter if no money is being received by Accounts office.

 

But we ARE operating PAYE, it’s just there are no deductions.

 

We have an annual payments flag set by Accounts office. Had this flag not been set, we would have been receiving reminders for payments.

The lady at HMRC this morning said that annual payment schemes are rare these days. Why is this?

 

Of course, when you phone, they have their stock answers and do not understand how things work in practice. No-one at HMRC seems able or willing to flag up the fact that potentially something is going wrong which is so frustrating.

 

I've had 11 of these this week.

 

Has anyone else experienced this and how have you deal with it?

 

Or is it me!

Comments
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One so far

should_be_working |
should_be_working's picture

Hundreds.

liam@adplus |

Thanks Liam

appacc |

We complete these

occca |