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PAYE scheme recorded as ceased 6 April 2021

How do we reactivate the scheme? and implications for IR35

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Hi all

I am hoping someone can point me in the right direction.  Client had one person on payroll who left 31 March 2021, so the scheme was recorded as ceased, effective 6 April 2021 (director has other income streams so does not draw a salary).  NB I use Moneysoft.

However, roll on a couple of months and the Director has taken on an Non-exec role with a company based in Malta.  This company does not run a payroll, so it has requested that the UK Ltd invoices gross and the UK Ltd to process through the UK payroll.

Does this create a problem, in that the client should be making the deductions? (as in need to apply the off-payrolling/IR35)  If this is ok, is it possible to reactivate an existing PAYE scheme or do we need to register for a new scheme?

Thoughts and advise would be appreciated.

Many thanks

Replies (5)

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By NYB
13th Jul 2021 19:04

Your IR issue I havent a clue but you can just re start the payroll up to 2 years I think it is from ceasing. So same PAYE reference. Sopart of your question has been answered.

Thanks (1)
By SteveHa
14th Jul 2021 10:51

For the IR35 issue, where the client is overseas, the old rules apply and it is your client who will have to determine whether or not they are caught.

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Replying to SteveHa:
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By lja20
14th Jul 2021 11:09

Thanks - IR35 will apply due to the nature of the role, client accepts this, I just need to sort the processing.

Haven't processed any IR35 before (can you tell!) can I just run through payroll each month or is it a mop up at the year end? Not sure if I need to report the IR35 nature of the contract separately. Deductions (Tax and NIC) will be sorted, just not sure of the mechanics (yes, I will read up on it but pointers would be very helpful!)

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Replying to lja20:
By SteveHa
14th Jul 2021 12:18

Start at https://www.gov.uk/guidance/understanding-off-payroll-working-ir35 and work through the detailed guidance links (right hand side)

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By Susan56
14th Jul 2021 12:45

You can reactivate a payroll simply by sending in an RTI submission. HMRC confirmed this to me.

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