Payroll question

This is purely hypothetical!

So I have a person, I pay them £10 a month for the 1 hour's work they do me.  I would assume no PAYE scheme is needed as, frankly, no tax, no NIC.  But if I up their hours, at what point do I need a PAYE scheme?  When they hit the first NIC threshold?

As a side query, I up their pay to £30 a month, but I find out they have a large recurring taxable but untaxed source of income (a state pension say, for some reason it is £20,000) which makes their total income over the PA (but their pay under all the thresholds).  Is a PAYE scheme needed given tax should be being deducted from the employment?

I hope I haven't strayed too far from reality that my question is too complex, all I really want to know is, what triggers the need for a payroll?  HMRC seem intent on bombarding me with how to do it online, but not whether it needs doing in the first place.

Comments
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when you have staff

Tonykelly |
Tonykelly's picture

PAYE scheme

Euan MacLennan |
Euan MacLennan's picture

Hi dim

SteveOH |
SteveOH's picture

is it wise though?

carnmores |
carnmores's picture

you need to bear in mind tax credits

Tonykelly |
Tonykelly's picture

Second bite

Euan MacLennan |
Euan MacLennan's picture

third bite

Tonykelly |
Tonykelly's picture

Ta!

Constantly Confused |
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There you go

Tonykelly |
Tonykelly's picture

Euan has it exactly right.

nigelburge |
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p46 box c

Tonykelly |
Tonykelly's picture

Ummmmm......

nigelburge |
nigelburge's picture

I don't think you need to be a PAYE expert in this case

Tonykelly |
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Might be a moot point

Constantly Confused |
Constantly Confused's picture

P46 (Pen)

Tonykelly |
Tonykelly's picture

P45

martin.jackson |

How can you issue a P45 when there is no PAYE scheme?

cfield |
cfield's picture

Euan's the man!

lh3f9764bg1g |

PAYE

Timtaylor.tas |

RTI

Vince54 |