As part of exploring its options, a local Church is looking at appointing an Administrator, who would be the parish's sole employee. The PAYE manual at PAYE23030 indicates that if payments are below NICs threshold (which they would be) then RTI only need be operated if "the employee has another job or pension income". Presumably, by "job" HMRC mean "Employment subject to income tax in the UK", so if the administrator's only other income were genuine self-employed trading income there would be no need to set up the RTI scheme. However, there would then be a disclosure in the employee's own SA return of "employment income paid gross" - have any members come across such a situation, and what was HMRC's approach (and can the software actually cope)?
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What software are you referring to? If it the tax submission on hmrc site? If so then there should be no issue here. This person is not the only person who will submit a return with nil tax from an employment.
It's not employment income paid gross. It's employment income from which no tax has been deducted.
It would still form part of the taxable income on a return and, depending on other income, may affect the total tax bill.
Rather a common scenario, and not one that presents any challenge, even for HMRC's failing IT.