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
Replies (1)
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HMRC don't understand the payroll software
I have had 2 one man companies where I set up a PAYE scheme just so that I could register for P11D exemption and then I wanted to close the scheme as they both were drawing pensions. In both cases I had filed EPS's for as long as they were on the payroll.
HMRC told me some such nonsense as it should be possible to file a closing FPS. Of course you can't if you've never processed a payroll for that scheme. So in both cases I've written to HMRC asking for an acknowledgement that they've closed the scheme. And I've got the written replies that the schemes are now closed. So try that approach.
I don't think it's a good idea to process anyone as a leaver in such cases, but this would not work electronically if no payroll has been run anyway.