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director on payroll & p45

director on payroll & issuing p45

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hi,

one of our director stop working for 1 year and expected to be back by then and she doesn't has any intention to get other employement.

its 100% sure she will be back, we stop her payroll, and when she is back we start her payroll again.

my question is that right wway or we have to issue p45 and record new joining date for her.

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By bernard michael
20th Feb 2021 09:13

I she still a director and performing statutory or other admin for the company ??

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By rajbulbul
20th Feb 2021 09:58

no but still directorship responsibilities, also any commission or bonus will be give for her past work if there is any in future.

i think keeping her in nil payroll will be wise to declare any payments later.

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By Truthsayer
20th Feb 2021 09:32

You don't have to list her as a leaver and issue a P45. If you think it's simpler, keep her on the payroll at £Nil salary, and mark her as having an irregular payment pattern. Don't just stop her payroll, as HMRC will automatically treat her as a leaver.

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By rajbulbul
20th Feb 2021 09:51

Thanks we already on nil. if HMRC automatically treat her as a leaver do we have to change restarting date once she is back or just start paying as normal.

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By Truthsayer
20th Feb 2021 17:12

You have to start her on the payroll again like a new employee.

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By Hugo Fair
20th Feb 2021 18:10

But you won't know for certain "if HMRC automatically treat her as a leaver" as they don't send you anything to that effect ... which is how the discrepancy can arise between your and their 'employment records'.
Which is why its better to remain in control ... either by terminating her and then re-starting her when you want to pay her again, or (much better) retain her employment but tell HMRC that she only receives 'irregular payment' - as per earlier posts.

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By Wanderer
20th Feb 2021 09:41

Better leaving her on the payroll, at nil pay.
Too much chance of getting the NIC calculations wrong if you do the inputs incorrectly on leaving & rejoining.

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By rajbulbul
20th Feb 2021 09:57

Thanks, if its £nil does the director consider in employment or unemployed?

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By Hugo Fair
20th Feb 2021 11:23

As truthsayer has already told you "mark her as having an irregular payment pattern".
In other words, if you're keeping her on the payroll (which sounds sensible) then you still have to include her in your regular FPS filings - not only with zero 'this period' figures, but with the 'irregular pay' flag checked.
If you don't do both these things then HMRC will automatically mark her record as a 'leaver' (after 90 days I seem to recall) ... which will lead to chaos if you then include her on a later FPS (with pay but without a new 'starting date').

Oh and, although I don't see the relevance, the answer to your latest question is that HMRC will treat her employment as ongoing (if you follow the suggested actions). Whether her 'status' is employed or unemployed may depend on which govt dept you ask!

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