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!
- Dispensing with accounting periods, with nested ledgers. 247 7
- cancellation of Engagement 239 4
- Foreign branch in SME 113 1
- How much did you pay for your website 1,252 21
- Fastest Software 680 11
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 138 1
- Where did it go? 307 2
- Seed Enterprise Investment Scheme Charges 97 1
- Feuding directors 304 8
- VAT Registration for Building Company 121 2
- FILING COMPANY ACCOUNTS 516 12
- Vat threshold issues 1,915 14
- Company Accounts - Limited company 615 5
- Use of Home for Sole Trader 256 4
- Vodaphone Share Scheme 119 1
- Benefit fraud 3,438 49
- SA Tax Returns 180 3
- Agent Change of Postal Address 174 2
- Consolidated accounts 145 2
- On line petition re HMRC grabbing money from taxpayer bank accounts 1,034 24
- CTA study material 653
- Anyone have clients that use Pay4Later to offer customers credit? 396
- Employment related securities question 249
- ATED Penalties 222
- AIM Stocks and IHT 204
- Tax Relief for overseas employees 174
- Trust for Employee 159
- Expat pension contributions? 152
- Staff accommodation without a rental value or RV 136
- Capital allowances 128