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!
- Proposal to strike off...... 493 10
- Is cloud accounting software all just pie in the sky 715 22
- SA316s 104 2
- How can i allow my clients to digitally sign? 506 10
- Can I recharge Car loan interest 360 11
- Start-up cost recognition 88 1
- Lunches 169 3
- Mortgage Adviser's request 373 8
- VAT on non-denominated postage 120 3
- Generic notification message 251 6
- Property Expenses 215 7
- Where do Balance Sheet Gains get recognised in CT600? 811 39
- Auto Enrolment (sorry) 112 1
- Tax relief for networking day out? 499 13
- Swiching tax 500 14
- Accrued salary unpaid 255 4
- P60 from HMRC Basic Paye Tools 4,191 18
- Basis periods 95 1
- P&L Treatment of property assets 111 2
- CGT on spouse's death 309 11
- Construction CIS LLP Company 598
- Services via intermediaries and new HMRC reporting requirements 589
- LIVE: Budget aftermath webinar 385
- Pensions Regulator 350
- NIC contribution on unremitted income 288
- Using the correct forms 264
- SA penalty proposals 255
- RTI - duplicate employee record 249
- Accelerated payment notices 234
- How hard is it to reduce a code? 225