The question relates to a private company limited by shares with two directors (who are also 50% shareholders). Only one of the directors takes a salary/fees from the company and as this is below the LEL for NIC purposes, the company is not registered for PAYE. Unfortunately the last two payments were missed before the tax year ended on 5/4/15. Is it acceptable to now make a payment retrospectively in respect of the 2014/15 tax year and thereby fully utilise the LEL for the 2014/15 tax year as originally planned (and without risking an encroachment on the LEL limits for 2015/16)?
I would really appreciate any guidance you can give me.
Many thanks.
Replies (2)
Please login or register to join the discussion.
Intention
If there is a track record of paying a regular sum to the director and it was intended that he should receive payments for February and March, I'd treat the amounts as accrued at 31 March.
If a PAYE scheme had been in place it would have been more difficult as far as RTI returns were concerned but I guess the oversight would not then have occurred.