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!
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- SA302's anyone?? 621 18
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- High value residential property - SDLT 15% 148 1
- 2013/14 failure to submit end of year submission 358 12
- Busines software 179 5
- Goods Purchased for Rental 210 6
- Converting a barn for business use 190 2
- Sale of house with planning permission - tax free? 320 4
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 327 12
- HMRC overreaching its powers -again against a small surveying firm? 496 10
- Going to need a tax, insolvency and legal specialist I think 335 3
- Bookkeping software 739 7
- Clogged Losses 290 5
- Letting relief on property transferred to a spouse 285 9
- ideas for a bonus scheme for accountants 671 10
- New Built in oven - allowable as repair? 282 4
- Accounting for Bank Loyalty Rewards? 138 1
- Nil Rate Band Trust - index linked debt by way of charge over property 910
- International interest certificate 523
- NOVA 375
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 336
- Management expenses for investment company 278
- Bonus Bonds 276
- Entertainer withholding tax in Australia 187
- Insolvency and whistle blowing 171
- EXACT ONLINE 169
- P11D benefit received by widow 167