My client employs 4 people, all of which are under the limit for PAYE. At the moment, she doesn't need to file anything with the revenue, but will she now have to register for PAYE because of the introduction of RTI? If so, she already submits VAT online how does she go about registering for PAYE on the HMRC website? Thank you in advance
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registering PAYE online
if your client has a hmrc dashboard set up thorugh the government gateway, you can register there, or on the hmrc website.
What do you mean by the limit for PAYE?
If you mean that no employees are paid more than the NI Lower Earnings Limit (£5,668 in 2013/14) and none of them has another job or pension (so that no tax is payable), then the client will not have to register for PAYE. If you are not registered for PAYE, RTI does not concern you. RTI is just a different method of reporting PAYE details to HMRC - it does not affect the underlying requirements.
paye online
She should already be registered for PAYE, even though none of her staff are over the limit. Has she checked with them that they have no other similar jobs, and submitted either a P45 or P46? With part time staff, I advise my clients to ask them fairly regularly if the have got another part time job since starting with her. This can be dropped casually into the conversation if you feel embarrassed about asking outright, but it will save you trouble if she has another job (and often not declaring it). If it turns out that any of her staff have another job, she as first employer of the week, is liable to pay any contributions due and reclaim a proportion from the other employer.
As the registration dates are being staggered, she may not need to fill online as yet, though she can do so if she wishes. Go to the HMRC website and follow the instructions. As her tax agent, you will require to be authorised to do her PAYE on her behalf.
No need to keep checking employee status
With part time staff, I advise my clients to ask them fairly regularly if the have got another part time job since starting with her. This can be dropped casually into the conversation if you feel embarrassed about asking outright, but it will save you trouble if she has another job (and often not declaring it). If it turns out that any of her staff have another job, she as first employer of the week, is liable to pay any contributions due and reclaim a proportion from the other employer.
I am not aware that this is a requirement. If you're holding a paper P46 from every employee with box A or B ticked then you are covered.
The italicised text is complete nonsense, I'm afraid. As was the first sentence in Hugh's original reply saying that the employer should already be registered for PAYE.
I agree with Tom
... and he is absolutely right about the NI LEL applying to each separate pay period.
Nor do I understand Hugh's final paragraph:
As the registration dates are being staggered, she may not need to fill online as yet, though she can do so if she wishes. Go to the HMRC website and follow the instructions. As her tax agent, you will require to be authorised to do her PAYE on her behalf.
Everyone has had to file online for the last year or two and all small employers must file under RTI from 6th April 2013. There are no staggered dates.
Euan is right
No-one has to register for PAYE just because of the introduction of RTI. If they fell outside the PAYE requirements before RTI then they still fall outside them after RTI.
Please be aware that it is not just annual limits for NI that apply. Any employee who earns more than the weekly LEL in any week would force a PAYE scheme to be created even if their annual income remains below the threshold. Likewise monthly paid employees need to remain below monthly LEL every payment.