Is it Ok to close a Director only PAYE scheme if there will be no pay ?

Is it Ok to close a Director only PAYE scheme...

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Hello,

I have a couple of genuine contractor clients who also have employed roles covering well in excess of the personal allowance.

They currently have PAYE schemes including just them and there are no expenses or benefits in kind to report. RTI submissions have been filed for 2013/14 showing no payroll being paid for the entire year and I intend to close the schemes 5th April 2014 in order to avoid unnecessary admin. HMRC have indicated that they need to be processed a leavers before the scheme can be closed which I understand.

I appreciate that a scheme was not required for these in the first place but now the schemes are up and running are there any potentially unforeseen consequences of processing the directors as leavers when they are still involved in the business and will continue to trade (taking dividends only)?

Many thanks

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By JCresswellTax
03rd Apr 2014 09:21

wouldn't have thought so

However, you really need to watch the benefits and expenses position as overdrawn DLA's and travel expenses will come up often for contractor clients.

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