Hi
I've started with a new client a few months back and after many years of trading they've decided to go legit. Theyre now registered for VAT and got an accountant on board to sort out the last 2 years companies house returns.
The problem is their payroll, they've never registered and I'm going to register them, but the ltd company has only been going for 2 years but 1 of their employees has been with them for 4 years. Do you think I should register the older company do 2 years of returns then deregister or can you change the company name? Also, does the hmrc software allow you to go that far back? I would ask their accountant but he told me that he'd register the company when I spoke to him a few months ago but now he's saying he doesn't have anything to do with the payroll and hasn't registered them.
Thanks
sort out the last 2 years companies house returns - presume you mean accounts? Companies House are threatening to strike off if a comapny's annual return is a couple of months late.
Sounds like the accountant knows this is a can of worms and is ducking the issue. What you should do is come clean, work out the wages for the whole period which the employee worked for them, including the (sole trader?) period before the company was formed. Don't know about the HMRC software, but either way I would guess it's going to be painful.
"and after many years of trading they've decided to go legit" ha ha quality.
best to own up and maybe, just maybe...the HMRC will be a little forgiving and give the company a bit of space to make the back payments of the relevant tax and ni due. if you show a little proactive admittance of guilt they may be lenient.
If not, I know an ex inspector who may fight your corner!
