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Sole ee prev under NIC threshold, but now PAYE scheme set up - what start date?

Sole ee prev under NIC threshold, but now PAYE...

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During 2013-14 client previously employed spouse at £300 per month to help with admin.  As she was the only employee with no other income, then no PAYE scheme was set up.

In May 2014 client employed an apprentice and a PAYE scheme was set up.  Spouse has not actually been paid since the scheme was set up in May so we have not included her in the scheme to date.  Client now wants to pay her backdated £300 per month to cover April onwards for her admin support. (She does actually help with the business).  Obviously I have advised to pay it over couple of months but my question is what date should we put in the PAYE system as a start date?

The £3,600 for 13-14 has been declared by her to the tax credits people so we don't want them to think it is a new job starting now but also we want to highlight that she is new to the RTI returns.

We use moneysoft if it is relevant.

Thank you

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Euan's picture
By Euan MacLennan
11th Sep 2014 13:59

What does it matter?

Enter the beginning of the month in which she was first paid by your client - 1st April 2013?  As that was before the beginning of the 2014/15 tax year, her PAYE code will be 1000L cumulative, rather than Month 1.

What matters is the date of payment and the monthly amount.  Pay her more than £663 in a month and there will be NI contributions to be paid, so pay her £600 a month from September to January, then £300 a month in February and March 2015.  She will get £3,600 by the end of 2014/15 with no tax deducted or NIC due.

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By Luke
11th Sep 2014 15:01

Thanks Euan

Moneysoft will not flag her up as a new starter if the date is before the last RTI was filed, hence why I was wondering.  I assume the fact that she will be paid will be noted by HMRC and their records updated.

Typically he is a sole trader who is soon moving to trading through a limited so we need to get her paid in the next couple of months.  There will be a small amount of employees NIC to pay but less than £100.

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