Just came upon this post in researching another issue, but have recently been told by HMRC that a DPNI scheme, which seems to be what you are describing here, would not be reported to TPR as a normal PAYE scheme would be, so the employee therefore falls outside of the usual auto-enrolment.
Better late than never, and might help someone else looking into a similar situation!
Thank you - I feel I am hijacking the thread a little, so will leave it at this. You are quite right that overall he's not really losing out as it's money in HMRC's pocket that he won't have to pay when he does his tax return, but cashflow-wise I'd rather have that much money in my pocket than in HMRC's.
I have a reverse issue - client (individual) entered a profit-share arrangement with a company. Signed a very briefly written document confirming the relevant profit shares. Company buys property, pays for renovations which client completes/oversees. Company has now registered for CIS and deducted tax from the payments of profit on the sale to the client.
Surely the arrangement should be a partnership so no CIS between the partners?
CIS deducted is substantial (£17k), so ideally would unravel this but I'm not overly hopeful of a result on this front. Any thoughts/ideas?
The guidance is the correct version. You never include a period of furlough in the calculation of the normal pay, because this would be an 80% value and you'd effectively be calculating 80% of 80% if you did.
Agreed, it's just a huge concern that the calculator is working it out differently to the guidance.
I don't think NMW applies to an office holder, so I think they're OK on that point. Also they're not employed by the Church.
Re. the tax returns, the special rules don't seem to give a practical answer, e.g. the regular income would be taxable but is well below the PA so there's no liability, they're not self-employed for tax so why need a TR?
Just to muddy the waters, the Minister of Religion pages ask for figures from the P60 - they don't have one, as they're not employees, but should they set up a DPNI scheme and produce one themselves? There wouldn't be any liability from the DPNI scheme so is it necessary? Everything I find about it seems to take me back round in a circle.
Thanks for your reply. There's not been a notice issued, but they've not registered for SA either. As they're from Nigeria I don't want them to miss doing something which could then invalidate their visa conditions in a worst-case scenario.
Agreed, it very much depends on what your payrolls are like. Just to add another name to the list, I'd recommend IRIS payroll professional (formerly Star). Not the cheapest by any means, but very comprehensive, with great support.
My answers
Just came upon this post in researching another issue, but have recently been told by HMRC that a DPNI scheme, which seems to be what you are describing here, would not be reported to TPR as a normal PAYE scheme would be, so the employee therefore falls outside of the usual auto-enrolment.
Better late than never, and might help someone else looking into a similar situation!
Seems to still be an issue, complete the form click on 'Preview' but then get directed to service issues page and can't print what's been done.
It's working now
Thank you - I feel I am hijacking the thread a little, so will leave it at this. You are quite right that overall he's not really losing out as it's money in HMRC's pocket that he won't have to pay when he does his tax return, but cashflow-wise I'd rather have that much money in my pocket than in HMRC's.
I have a reverse issue - client (individual) entered a profit-share arrangement with a company. Signed a very briefly written document confirming the relevant profit shares. Company buys property, pays for renovations which client completes/oversees. Company has now registered for CIS and deducted tax from the payments of profit on the sale to the client.
Surely the arrangement should be a partnership so no CIS between the partners?
CIS deducted is substantial (£17k), so ideally would unravel this but I'm not overly hopeful of a result on this front. Any thoughts/ideas?
Agreed, it's just a huge concern that the calculator is working it out differently to the guidance.
I don't think NMW applies to an office holder, so I think they're OK on that point. Also they're not employed by the Church.
Re. the tax returns, the special rules don't seem to give a practical answer, e.g. the regular income would be taxable but is well below the PA so there's no liability, they're not self-employed for tax so why need a TR?
Just to muddy the waters, the Minister of Religion pages ask for figures from the P60 - they don't have one, as they're not employees, but should they set up a DPNI scheme and produce one themselves? There wouldn't be any liability from the DPNI scheme so is it necessary? Everything I find about it seems to take me back round in a circle.
Thanks for your reply. There's not been a notice issued, but they've not registered for SA either. As they're from Nigeria I don't want them to miss doing something which could then invalidate their visa conditions in a worst-case scenario.
Agreed, it very much depends on what your payrolls are like. Just to add another name to the list, I'd recommend IRIS payroll professional (formerly Star). Not the cheapest by any means, but very comprehensive, with great support.
I'd assume he meant to say no OTHER directors or shareholders, than the one wanting to make the gift.