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Do we need to set up a PAYE scheme ?

Do we need to set up a PAYE scheme ?

My client is a small flat management company.

In the past they have paid one of the residents/shareholders an annual fee of £1,800 for dealing with the day to day administration of gettting quotes for repair work, liasing with builders, paying insurance, the gardner etc.

This year the person undertaking the work also happens to be the company secretary.

I have heard that from 2013 new measures are going to be introduced to require "office holders" to have PAYE deducted at source. As company secretary she is an office holder but the fee is in respect of day to day general administration duties and not related to the fact she is company secretary. In this case do you think we need to set up a PAYE scheme ?


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30th Apr 2012 08:38

Clarification on office holders

There has always been a requirement to deduct PAYE and Class 1 NI on Office Holders. The changes that are going to come in are around making legislation and HMRC guidance far clearer so that there can be no ambiguity, especially where the Office Holder operates via a personal service company.

It will be difficult to pay these fees to the Co Sec outside of PAYE. Is the role of Co Sec not normally around admin anyway ?

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