Share this content
6

Payroll for Limited Company

Register as an employer

Didn't find your answer?

I'm currently aware you don't have to register your limited company if your not paying over the Lower earnings limited.

My question is that I would like to pay someone which falls under the lower-earning limited, however, what records do I need to keep when I pay this person? 

Replies (6)

Please login or register to join the discussion.

RLI
By lionofludesch
29th Sep 2019 18:03

If you're paying £117.99* or less every week, keep a record of what you pay.

You'll also need the employee to complete a starter form to confirm that they have no other job.

The snags start coming when the employee starts working enough hours to push above the £118 threshold. Because then you need to know not only what you've paid in that week but in the weeks earlier in the tax year as well.

I'd keep a record on software - BPT will do - just in case. No need to submit to HMRC obviously.

*Or monthly equivalent. 2019/20 rates

Thanks (1)
avatar
By paul.benny
30th Sep 2019 08:59

Remember, too that the employee should be given a payslip showing rate and hours worked.

Thanks (1)
avatar
By timothyvogel
30th Sep 2019 11:42

It is not just the earnings limit that needs to be considered, so if anyone has another job or there are any expenses paid you need to register.

Thanks (1)
avatar
By legerman
30th Sep 2019 12:23

I'm all for payroll being compulsory regardless. It's all too easy to fall foul of the regs for the reasons Lion gives.

Thanks (4)
Replying to legerman:
avatar
By paul.benny
30th Sep 2019 13:52

Good point.

HMRC basic PAYE tools is a bit clunky but it is free and it does do your RTI reporting - although not payslips.

Thanks (1)
Replying to legerman:
RLI
By lionofludesch
30th Sep 2019 14:32

legerman wrote:

I'm all for payroll being compulsory regardless.

I agree.

Not sure why it isn't.

Thanks (1)
Share this content