PAYE set up but not used

specified charges applied

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Hi all

I am looking for some guidance, a new client has recently commenced trading through previously dormant Ltds (x2)

These entities were incorporated last year and left dormant, but at the time, previous accountants also set up a PAYE scheme (x2) and no RTI filed.  HMRC have applied specified charges, which are now overdue.

I am waiting for agent authorisation to come through before I speak with HMRC.  Question - will HMRC simply cancel these charges?  Amounts involved are not significant, it is more the principle of getting them cancelled.  Client will be using PAYE but probably not until new tax year.

I'm just wondering what the options/how receptive HMRC could be.

Any thoughts would be much appreciated.

Many thanks in advance.

 

 

Replies (6)

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JCACE
By jcace
23rd Jan 2019 11:44

You or the client need to submit Employer Payment Summaries stating that no payments were made during the relevant periods. HMRC should then clear the Specified Charges.

Thanks (1)
RLI
By lionofludesch
23rd Jan 2019 11:54

Agree - generally I've found that HMRC will remove the charges without question where there's no activity.

Thanks (1)
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By lja20
23rd Jan 2019 12:06

Many thanks - I thought this might be the case but wasn't 100% sure.

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By Matrix
23rd Jan 2019 12:20

You could just close the scheme, they probably wouldn't do it over the phone and 45 mins on hold this week is not the best use of your time.

I would probably close it the first month and then just file one EPS if my system let me do that.

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Replying to Matrix:
JCACE
By jcace
23rd Jan 2019 13:08

Except you might have difficulty closing it while there are unpaid/uncleared specified charges in place.

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By lja20
23rd Jan 2019 13:57

Thanks, once the agent auth is in place, I will try and speak with HMRC, I don't want to close the schemes, as they will be used, its more just clearing the history (obviously nothing previously submitted, client wasn't aware previous firm had set up the schemes), so I am just picking through so we start fresh. Hopefully it should be straightforward....and won't involve too long waiting to speak to HMRC. I will follow up with my experience...!

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