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Corporation Deduction for late payroll filing

Is this possible

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I have a client limited company with year end 30th June 2018

No payroll has been setup as the sole director said his other employment income is above personal allowance.  Subsequently he told us its only 5K for the 2018/19 tax year.

We need to run the payroll so the company get the CT deduction.  Is it possible to accrue the payroll and then run the payroll in January /February 2019 as we do not want to backdate the payroll due to penalties

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16th Jan 2019 12:29

Is this another time travel thread ?

If it is, no you can't.

Blame the client. You relied on his lies.

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By jcace
16th Jan 2019 13:16

What is "only 5K for the 2018/19 tax year"? I'm guessing that's his prediction of his other employment income.
If that is the case, I see no reason why the company couldn't accrue a bonus (eg to utilise his PA and ensure NICs), to be paid at the end of January or in February 2019 as you have suggested. The company will need to ensure that a PAYE scheme is set up so that the pay can be reported via RTI.

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By Matrix
to jcace
16th Jan 2019 15:41

But not accrue a bonus at 30 June 2018 unless they have a time machine as Lion suggests.

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to Matrix
16th Jan 2019 16:04

Yes - certainly they can treat the bonus as paid in 2018/19 for the director.

But the Corporation Tax deduction is for this year, not June 2018.

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By Matrix
to lionofludesch
16th Jan 2019 16:20

So we are agreed that the answer to what the OP is suggesting is No.

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to Matrix
16th Jan 2019 16:33

Mmmm - sort of. He just speaks of a Corporation Tax deduction. It's we who are inferring he means for June 18. He may not. He may be concerned with using up the 2018/19 personal allowance - it's not clear.

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