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!
- Filing Dormant LLPs with Companies House 116 2
- monthly payments 25 1
- Fixed Assets 292 6
- Tick & Bash Bristol 350 6
- Preference shares redeemed at less than par 243 12
- Client Death 218 2
- Coding notices post P11d 1,848 12
- Tax position re this lease? 190 3
- Normal trading company or property management company for CT600? 142 1
- What are options for non CA firm 1,689 26
- Do I need to pay Capital Gain Tax 578 24
- Real names 1,179 35
- Hive up - accounting and notes to financial statements 94 1
- What do "Former Contracted Out" rebates mean 158 2
- Director salary from company limited by guarantee 265 8
- Dividends with an annual profit but retained losses 193 1
- Anyone come across this shower before? 1,949 35
- What are the tax implications of employer paying my tuition fees? 227 1
- Company Secretarial Software 1,391 30
- Do I need to report this to SOCA 721 9
- Proposed Amendments to IAS 1 586
- Property exchange - 8-year legal delay following fall-out 456
- Accounting for Insurance Premium Financing 355
- IFA incorporation 340
- Sorry ignore me 329
- Moving into own BTL property - allowable costs 282
- Will Ni be payable on the salary I receive abroad ? 277
- SAGE Payroll Data for Import to MS Dynamics AX 266
- Cancelled 209
- property ownership between husband wife three taxpayers 179