PAYE scheme for one low paid employee

PAYE scheme for one low paid employee

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Client - sole trader - wants to employ a part time receptionist to cover for lunches etc - will work about 5 hours per week.

If no employees who are tax payers then no need to open PAYE scheme.  But new employee also has another employment where she works 15 hours per week.

So even though both employments added together will still be covered by her personal allowances, she will have to tick box C on the new starter checklist - which will give her a code of 0T- making her a taxpayer, so PAYE scheme/RTI kicks in.

If employee then asks HMRC to split her PA she will revert to non taxpayer status - and PAYE scheme/RTI runs and costs client time/money for no reason.

Can there really be no other way to do this?

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Euan's picture
By Euan MacLennan
07th Oct 2014 14:45

Not unless ...

... he does what most other self-employed people do and not take a one hour lunch break every day!

Oh! and it's PAYE code BR if the employee ticks box C - it is only 0T if no box is ticked.

Also, it would not be possible to split her personal allowance without a PAYE scheme to which to allocate part of the allowances.

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