I have a client with a number of part time employees paid below the LEL (under £112 pw).
All his employees have completed New Starter Checklists (previously P46) to indicate no other employment, taxable state benefits or pensions.
As a result, he does not have a PAYE scheme.
I have two questions as follows:
1) Is there any official guidance regarding how frequently the employees should be asked the questions on the New Starter Checklist? So an employee could sign statement A or B accurately and in good faith at the commencement of the employment but then start another job as well or receive pension income at a later date. My client would most probably then have an obligation to register as an employer and operate a PAYE scheme for all his employees- a huge additional burden for a very small business. Would a signed New Starter Checklist, dated over 12 months ago provide him with protection if challenged by HMRC in these circumstances?
2) Am I correct in thinking that my client has no requirement to take any action in relation to Auto enrolment? Clearly all his employees earn below £10,000. However, is this one of those situations where you have to register and then prove it doesn't apply? Presumably registration would be impossible however without a PAYE reference......
I would be most grateful for any guidance readers can offer.