What to report under RTI

What to report under RTI for new payroll scheme

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Situation: 

Limited company with 1 Director.

Within this tax year, the company has been formed and the Director took salary of under £120/week for a few months therefore no payroll scheme was registered.  Payroll records were kept on Excel.

Company has now registered as an employer (the company is considering taking on an additional employee, therefore wants the payroll scheme ready. Also Director will be upping their salary next tax year).

No reports have been made/required under RTI so far. 

A new employee hasn't been taken on yet and the director is being paid nothing for the rest of this tax year, so no payments to report.

I understand that the new scheme will be closed if no filings are made under RTI within 120 days.

I'm wondering if anything at all needs submitting under RTI for this tax year or if it can just start fresh next year (which will be within the 120 days). No tax/NI is due to HMRC in any case.

Thoughts?

Replies (10)

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By Paul Crowley
12th Feb 2021 14:52

File zeros each month is normal

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By SXGuy
12th Feb 2021 14:53

I'd guess that as the company has registered for paye then hmrc will expect an eps or fps submission of some sort.

Even if that's to say no one has been paid for each period up to April.

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By Debittomycredit
12th Feb 2021 15:05

Thanks for the replies so far. I'm very new to payroll so practical guidance is appreciated whilst trying to navigate written guidance on HMRC's website.

Presumably to file an EPS I will need to put to-date info in for the employee into the payroll software. Will HMRC not raise a discrepancy about this, with there having been previous payments made 'off-payroll' (albeit under the limit of having to register)?

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Replying to Debittomycredit:
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By SXGuy
12th Feb 2021 15:23

No they shouldn't have an issue with it. Just make sure you only file from after the date of registration.

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By Hugo Fair
12th Feb 2021 16:09

From the latest HMRC Employer Bulletin (published two days ago):

* You normally need to register as an employer with HMRC when you start employing staff or using subcontractors for construction work. You must register before the first payday.
* Once HMRC has processed your request, it takes 5 working days to get your new Employer PAYE reference. You cannot register more than 2 months before you start paying people.
* If you want to register a business that will start on or after 6 April and you tell us in the previous tax year, HMRC will not be able to start processing your request until after 6 April. This may mean a delay before you receive your registration details.
* If HMRC does not receive any submissions or information within 120 days following the issue of your new PAYE reference, then your PAYE scheme may be cancelled. If this happens HMRC will write to you to let you know.
* If you do not pay anyone for a period longer than one month, but still require your PAYE scheme to remain open, you can tell HMRC by completing the ‘Period of Inactivity’ fields on your Employer Payment Summary.
* Failure to do this may result in your PAYE scheme being incorrectly stopped. You will not always receive written notification from HMRC when this happens.

So, with hindsight, it would've been easier if you'd delayed setting up the PAYE scheme until there was something to report (preferably in the new tax year)! But, as SXGuy says, you'll now need to file an EPS (that has nothing to do with individual employees or their pay). Welcome to Payroll!

Thanks (2)
Replying to Hugo Fair:
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By Debittomycredit
12th Feb 2021 16:15

Thanks, the client registered as an employer of their own accord before I took them on (as they do!) ;)

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Replying to Debittomycredit:
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By SXGuy
12th Feb 2021 16:53

BTW to make life easier, just file eps for each month upto and including March. Nothing stopping you doing them early.

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By frankfx
12th Feb 2021 17:48

Why not up the salary this tax year and obtain national insurance credits?

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Replying to frankfx:
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By Debittomycredit
12th Feb 2021 17:51

Thanks for this - NI credits already obtained via previous employment earlier in the tax year

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Replying to Debittomycredit:
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By Not Anonymous
12th Feb 2021 20:09

Debittomycredit wrote:

Thanks for this - NI credits already obtained via previous employment earlier in the tax year

If tax was paid on the previous employment earlier in the tax year what has happened to the (possible) tax refunds that have been due for some or all of the weeks earning £120?

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