New client has a small Limited Company which made a profit of 12,000 in its first 12 months to 31st July 2018. He drew money out of the business but has not set up a PAYE scheme.
He had no other income in personal tax years 17/18.
I dont think you have to set up a PAYE scheme if you only have one employee below the LEL of 5,876.
Would it be possible to put 5,876 as salary for 17/18 through the Limited Company for the year to July 31st 2018 which would also go on his SATR for 17/18?
The Company income was also subject to CIS deductions of 20%. Usually HMRC only seem to refund CIS (in excess of Corporation Tax due) if FPS/EPS have been submitted at year end. Is it possible to reclaim CIS if you don't have a PAYE scheme? Is there a way round this?