Client started in business by setting up a "company" - no company was registered at Companies House. They have traded for over a year and throughout that time have paid themselves a salary and operated PAYE & NIC on the salary payments (along with other employees). They have now approached us to do their first set of accounts. The business commenced in January 2016 and there appears to be no registration for the self employment as they thought they were running a company. Though they did register as an employer (which we thought would have triggered a business record). No problem with preparing accounts etc and registering them as self employed etc.
However I am struggling to figure out how to unravel the salary payments and reclaim the overpaid PAYE NIC & Employers NIC.
Has anyone ever had any experience of this?
On a side note we have now set up a limited company which will opearte the business and the old "company" will cease trading in due course.
I feel a rather long letter explaining this sutuation to HMRC is coming across my desk.