Newly formed ltd needing to pay salaries

UTR not received yet, PAYE not active

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A business registered earlier this month needs to pay its director and employee (headcount of 2) a salary by month end. UTR has not been received yet and we are unlikely to register for PAYE by due date.

What is the best way to proceed? 

Replies (3)

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RLI
By lionofludesch
26th Jan 2024 09:53

Just pay it.

There'll be no penalties as HMRC tardiness is a reasonable excuse.

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By NYB
26th Jan 2024 11:00

Just pay. I remember not long ago someone from HMRC said it was illegal to pay staff unless you can send your FPS. Dream on. So your poor employees have to wait until HMRC can sort themeselves out.
You cant submit an FPS but just do that when you are able. Ive done it before with no comeback

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By FactChecker
26th Jan 2024 13:52

FWIW I'm unclear as to why you say the "business registered earlier this month NEEDS to pay its director and employee a salary by month end".

Presumably this is the same musician from your previous post who (for reasons that may or may not have been sensible) decided to move from being self-employed to setting up a limited company - and now wishes to pay partner for admin work?
If so, then this was all their choice and entirely within their control to plan properly ... so *need* seems a tad overblown.

However, if the UTR is on the way and so long as the request to register a PAYE scheme is made without delay, then there's no great problem other than that initial RTI filings won't be made by their deadlines.

As others have said, you can always appeal any late filing/payment penalties (which may not arise anyway) - BUT you really want to get your skates on, as it gets a whole lot messier if you end up trying to report after the tax year has closed!

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