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Payroll Submission

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Dear Group,

A have a client, sole director/owner of a limited company. The client attempted to set him-self up on PAYE and pay himself a salary of 6,500 a year.

Client has not filed PAYE submissions for months 11, 12, 1, and 2 (Different tax years. One that has just passed and this one.). I appeared nothing was paid out in terms of salary for months 11, 12, and 1. However, in the bank statements I see a bulk payment of 2,166 with the refer FEB - JUN. 

Director set himself up on monthly payroll. I am assuming that the individual submissions would need to be made accordingly, or would it be OK to zero-out the previous period and treat this as a payment for one period.? Penalties seem to have accrued due to late filing.

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By Paul Crowley
24th Jun 2021 21:00

Tell your client that it is cheaper to pay someone to get it right that to pay for someone to fix it.

Hairdressers love people who try to cut their own hair.

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Replying to Paul Crowley:
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By Andy556
25th Jun 2021 12:50

I had to cut my own hair during lockdown, when I went back to the hairdresser's they didn't even notice.

I was so proud :)

Or they might have been secretly laughing and didn't mention it

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By Leywood
24th Jun 2021 21:06

Why anon?

Not sensitive info.

Pass this on to someone who knows what they are doing with payroll.

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By AdamMurphy
24th Jun 2021 21:30

The anon system really needs abolishing, it is grossly over-used. There is not one iota of commercially sensitive info in your post.

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By Hugo Fair
24th Jun 2021 23:10

It seems that OP possibly knows less about processing/reporting/paying Payroll than his client ... an impressive achievement given the low bar evidenced in the story.

Trying to correct the fundamental misconceptions set out would require a lengthy exposition starting with an explanation of Tax years, months, etc ... but, I don't have the energy to attempt that amount of tuition here - and it will cost a small fortune if OP wants to be trained in Payroll from that starting position.

So, long story short, put your client in touch with a Payroll professional (and quickly).

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RLI
By lionofludesch
25th Jun 2021 07:29

Check those numbers. Feb to June is five months. £2166 is 4/12 of £6500.

He's late with his filings as you say. There's not much you can do about that now, other than appeal on the grounds of gormlessness. Even if there was no pay in any particular month, he needed to submit a nil return.

The up side is that it may prove to be a hint to the client that running a company isn't as easy as he thinks.

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Replying to lionofludesch:
ALISK
By atleastisoundknowledgable...
25th Jun 2021 08:41

Quote:

… appeal on the grounds of gormlessness. … running a company isn't as easy as he thinks.

[chortle]

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Replying to atleastisoundknowledgable...:
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By lionofludesch
25th Jun 2021 09:16

You chortle but that's always been a winner for me.

Partly because it's instantly believable.

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Replying to lionofludesch:
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By Paul Crowley
25th Jun 2021 09:38

Are you really saying that you have used 'gormless' as the reason for being late or as the basis of an appeal

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RLI
By lionofludesch
25th Jun 2021 09:43

Quote:

Are you really saying that you have used 'gormless' as the reason for being late or as the basis of an appeal

Maybe a synonym but that was the general thrust of the argument.

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Replying to lionofludesch:
RLI
By lionofludesch
25th Jun 2021 12:50

Quote:

Maybe a synonym but that was the general thrust of the argument.

I do remember using the expression "... made a complete pig's ear of ...." in a letter to HMRC.

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Replying to lionofludesch:
By SteveHa
25th Jun 2021 13:34

Could be an annual director's payroll. Below the NI threshold.

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Replying to SteveHa:
RLI
By lionofludesch
25th Jun 2021 13:44

Quote:

Could be an annual director's payroll. Below the NI threshold.

OP specifies monthly. Even if it's annual, the April 2021 filing is late.

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Replying to lionofludesch:
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By Hugo Fair
25th Jun 2021 14:48

Not just monthly, but actually submitted monthly until fell into some black hole (and therefore without 'nothing to file' EPSs being submitted ... or an EoY (EPS) submission ... or the replacement EYU (aka in-year corrective FPS) ... or a P60 for the employee ... or indeed a P11D if needed, and so on and so on).
The list of omissions is lengthy as will be the number of Penalties eventually issued.

And all that's before client realises he's messed up a year's worth of NI contribs (which he/she may not care about) - and no doubt many other things related to DLA, divs, etc.

FWIW what wound me up was the cavalier throwaway remark at the end of OP: "Penalties seem to have accrued due to late filing" ... 'seem to'?!?

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