I understand RTI completely but am STILL slightly confused about directors - for example I have one that I produce a payslip for £624 a month (in 2012/13) with all the other staff payslips but he doesn't actually take it - so presumably this doesn't need to be reported under RTI?
I also have companies with JUST a director who does take the £624 a month - presumably this then IS recorded under RTI - as a director working 40 hours a week?
I would really appreciate if someone could clarify finally for me as I am slightly concerned!
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Two answers
Why would you produce payslips for someone who takes no pay? This is not an RTI problem, but a practical matter for you to resolve with the director. For RTI purposes, if you continue to prepare payslips for him, he will be included along with the other staff on the FPS. If he doesn't take any pay, remove him from the payroll.Yes - as an employee working 30+ hours a week. You will need to submit an FPS each month.
@Euan MacLennan
Why would you produce payslips for someone who takes no pay? This is not an RTI problem, but a practical matter for you to resolve with the director. For RTI purposes, if you continue to prepare payslips for him, he will be included along with the other staff on the FPS. If he doesn't take any pay, remove him from the payroll.Yes - as an employee working 30+ hours a week. You will need to submit an FPS each month.
... maybe I didn't phrase it correctly, what I meant was he doesn't actually specifically take the £624 that is run through the payroll, it is credited to his loan account?
For a full run down of director-related RTI issues
See Rebecca Benneyworth's RTI troublespots article from last week.
Euan has been a very helpful commentator on a lot of RTI issues and his summary should suffice in this instnce.
But if you have time there are several sub-discussions around the issue of dividends and directors' loan accounts at the end of Rebecca's article.
I asked the same question at a training event
last week jaybee.
I asked if we could carry on crediting the £624 (or whatever going forward) to the DLA and he/she then draws down as they want. After all, we have always counted the date that money is credited to DLA as being the date of payment.
Paul Soper confirmed that we could carry on crediting to the DLA and would report each credit to the DLA as a payroll payment. When the cash is actually taken it would not then be reported.