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Annual directors payroll

Annual directors payroll

Didn't find your answer?

Afternoon,

For a Ltd company with only one director can the PAYE be completed only once a year, i.e March 2015?

I think the answer is year but I would like to double check with the long servicing accountants.

Thank you for your help.

Replies (6)

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By JCresswellTax
08th Apr 2014 13:55

I'm a 'long servicing accountant'

And the answer is yes - look at annual payroll schemes.

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Euan's picture
By Euan MacLennan
08th Apr 2014 14:10

What is the question?

"Can PAYE be completed once a month for directors" as in the question summary, or

"can the PAYE be completed only once a year" as in the body of the question above?

I assume that it is the latter, in which case I agree with JCresswell - here is a link to Annual Schemes - but beware.  If the salary is actually paid monthly, RTI reports must be submitted every month on or before the date of payment.  Annual schemes only apply where there really is only one payment a year to the director.  A credit entry to his loan account counts as payment, so you could credit one payment a year to his loan account and the director could then draw it down monthly.  In this case, you might wish to make the payment in April 2014, rather than March 2015, to avoid an overdrawn DLA, with its s.455 and BIK tax connotations.

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By lizmoss
08th Apr 2014 15:27

That link doesn't tell you how to set the scheme as annual.  Do you write in to HMRC or submit an RTI return of some kind?

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Replying to lavalamp:
Euan's picture
By Euan MacLennan
08th Apr 2014 15:50

The link does tell you

lizmoss wrote:

That link doesn't tell you how to set the scheme as annual.  Do you write in to HMRC or submit an RTI return of some kind?

"If you satisfy the requirements and think that an annual scheme might apply to you, contact HMRC's Payment enquiry helpline and have your Accounts Office reference number to hand."

The number is 0300 200 3401.

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Replying to Tax Dragon:
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By awdeek123
08th Apr 2014 17:21

Registering a payroll as annual

Called the "Payment Enquiry" helpline today and registered my scheme as annual. Relatively straightforward - only need to stipulate which month the annual payment is to be made so that HMRC know not to expect FPS's in the other months.  Advice is to mark the annual FPS as the final submission for the year and no other FPS/EPS submissions will be required for the other months (or so I was advised!) 

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Replying to Trethi Teg:
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By awdeek123
13th Apr 2014 19:55

  

Oops - had a follow up question but have deleted it and post it in "Any Answers"

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