A client company started trading in October and the sole director (no other income) has been paid £500 a month salary since then. As she has been under the limit, no PAYE scheme has so far been set up. She is now increasing her salary so I am applying for a PAYE scheme to be set up.
The first question when applying is when was the first pay day. Should I answer October when the first £500 was paid or January when the first payment over the limit is paid?
Also, when I deal with the submission for the January payment (I will be using Basic PAYE Tools), do I need to account for the October to December salary payments, or just enter the January payment? If I enter the October to December payments on the dates when they were made, will HMRC penalise the company for a late submission?
Many thanks for any help.