I own a ltd company and I am the director and sole 'employee'. For the previous financial year ending the 31st January, I accounted for a director's salary of £8400 when completing the corporate accounts however I had no PAYE scheme in place. I realise this was not right now but I'm sorting it out and looking at my options which I believe are...
1. Set up a PAYE scheme now with an earlier date and complete an EYU earlier year update. My concern here though is that I'll be fined at the amounts mentioned on the HMRC site which can be £100 per month! This seems a bit over the top if I am honest when the only payments due would have been about £40 national insurance. So my main question is... Has anyone in this situation *actually* been fined this amount?
2. I can update my corporate accounts for the year to pay myself less salary but more dividends so that the salary is not at that level where a paye scheme needs to be in place. I realise they'll be more to pay here at CT level and SA.
3. Is it definitely necessary for me to put a PAYE scheme in place or is it just a rigmarole? I actually had another job this tax year so my ni contributions for the year are complete!!
Ideally, I want to follow option 1. I did have some personal issues during the year which really stalled me so maybe if I'm fined, an appeal would be successful?
Hoping to employ people in the new year too so I'll be more diligent in this regard in future.