Is PAYE registration needed?

Is PAYE registration needed?

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A company has two directors who are both to be paid no more than £7696 a year. Dividends will be paid if there are profits and there will be no other employees. Does the company need to register a PAYE scheme (and deal with RTI etc etc)?  What about expenses reimbursed? Would they make a difference? What about auto-enrolment? Will it need to establish a pension scheme?

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Euan's picture
By Euan MacLennan
11th Sep 2013 18:19

Yes

As the directors will be paid more than £5,668, the NI Lower Earnings Limit, the company will require a PAYE scheme and will have to file RTI reports in order to obtain a qualifying year for the state pension for the directors.

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By Carl London
12th Sep 2013 08:41

Also may be PAYE tax payable if directors have other jobs....

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By stgreg
12th Sep 2013 17:00

Thank you both

Does that mean that if they were paid £5668 the PAYE registration would not be needed? One is over pension age already so that is not an issue. The tax payable point is noted.  Many thanks.

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