I've looked online but can't find out whether a private limited company with 3 directors (and no other employees) is legally obliged to provide each of them with a printed payslip each month. If not, is it sufficient to maintain a spreasheet record showing just the Tax and NIC paymable, and paid, each month.
I'm not a payroller, so any practical advice would be welcome. My chief aim to to avoid a new client getting into trouble/paying penalties if HMRC were to examine his present, rathre relaxed, system.
I'm pretty sure it is a legal requirement to provide all employees with a payslip showing certain items, i.e. tax, ni etc. Yep, just checked the Employment Rights Act says you have to have one. Read here...
Are you asking do you have to give them a printed payslip whether they want one or not? There may be a situation when the directors themselves do not actually want the hassle of payslips.
EDIT : Grammar rubbish (probably still is but better than before)
-- Edited by Peasie on Wednesday 22nd of June 2011 02:51:27 PM
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Never buy black socks from a normal shop. They shaft you every time.
To put it another way, yes - do the Directors have to have payslips?
I know the company is obliged to provide them to "ordinary" employees, but directors are employees too, so must the company - which they control - do for them what it is obliged to do for mere mortals? (I'm really intending to protect the company from censure, not the directors, though where one ends and the others begin is a moot point).
If the directors take a monthly salary from the company according to HMRC they have to be provided with payslips. What they or you do with them is a moot point!
Hi there, just chiming in with everyone else to say yes. If you're paying salary/wages which is assessed for tax & NI under paye regulations then a payslip must be given to the employee. Wages Act 1986. Amanda
Coming in from left field here but to my mind whilst it is good practice for directors to receieve a payslip I didn't think that there was any legal requirement for such.
Isn't it that employee's have the RIGHT to receive a payslip? It is not that the company has an obligation to produce one.
Sure that doesn't read how I intended it to. Think of it this way. Where the employee is the person in control of producing it then surely if they're not bothered about receieving it then there is no requirement to produce it.
The only legal requirement surely is that they get a P60 and, where applicable P11D at the end of the period. (They don't actually legally have to get a P11D but they do have to be informed in writing whats on it).
If it's no biggy then produce the payslips. But if the directors don't actually want payslips then what's the point in producing them for the sake of it.
Now if that doesn't kick off a debate nothing will.
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I just had a quick read through the Wages Act (1986) and can find no obligation to supply payslips (or indeed any mention of Payslips at all) in the act.
The closest that I found was section 19 (obligation to keep records) but that's aimed at the company keeping records rather than informing the employee's of their deductions.
Looking at the Employment Rights Act (1996) paragraph 8.1 states :
(1) An employee has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemised pay statement.
Which goes back to my point that about right to receieve as opposed to obligation to produce.
If the directors do not want a payslip I see nothing in either act to enforce the production of such payslip upon them.
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I now see that is definintely is an obligation on the company to produce and provide payslips, not least because these are supporting documents in the conversation between employee and the Revenue about income tax and NI etc, later on.
If the Revenue considers that their deaings with the employee are compromised because the company didn't give the employee all the information that they considered necessary, then they'd rightly be somewhat annoyed at this failure. And what is that likely to mean whever the Revenue are annoyed? Penalties is probably what it means.
So, the employee can do what he likes with the piece of paper, but the company has done what was required of it and, so, is fireproof.
Next question: is there an officially-required format for payslips, or only officially-required data that the slip must contain?
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
What about sending an emailed version? Its easier to press the delete button, than undo the envelope, screw up the payslip and bin it (or should that be shred it?)
I just figure that people only acquire knowledge by argueing about things.
If we all agreed with each other then where would be the fun in that.
Must admit though to thinking that I was a bit sad when I went off and scan read through the Wages Act.
As for this subject though, I'm a director and I've not had a payslip from my company for the last twenty years.... Think I should take myself to industrial tribuneral!
The only legal requirement here as far as I can see is the P60.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Talking of sad - I've still kept payslips (handwritten) from 1982 onwards. Come to think of it, the details were written on the envelope in those early years.
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Never buy black socks from a normal shop. They shaft you every time.
Must be something about this profession Peasie. Still got every payslip I've ever receieved right back to August 1979.... Non of them were hand written though.
Also still got every bank and credit card statements... I do eventually get rid of personal receipts but my companies are all filed away right back to 1990.
Now if only I could be this dilligent about keeping wives!!!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
AICB - going by your user name I presume you are an Associate of the ICB. Is your practice licence issued by the ICB? If it is and it, as you say, you are not a payroll person (one assumes no payroll diploma) you are in breach of your license if you are processing payroll.
AICB - going by your user name I presume you are an Associate of the ICB. Is your practice licence issued by the ICB? If it is and it, as you say, you are not a payroll person (one assumes no payroll diploma) you are in breach of your license if you are processing payroll.
Where is ths stated? Genuine question, not a sarcastic remark.
I had been doing payroll for the family business for 25 years before joining the ICB. I was not about to stop because I hadn't passed the payroll exam (I have now). The ICB say you can't do work you are not competent to do. Now if I had made a mistake and my brothers decided to sue me then my PI insurance would be invalid as I had not passed the exam (at that time). But I can't find anywhere where it says I cannot do this work. There are some that argue I shouldn't be doing payroll work because I haven't paid the upgrade fee to have PM Dip after my name.
-- Edited by Peasie on Friday 24th of June 2011 10:30:48 AM
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Never buy black socks from a normal shop. They shaft you every time.
If your PI insurance had been issued by another provider, say, and it had been written to cover payroll activities, then you'd be fireproof anyway. There are more brokers providing PI for bookkeepers than just Trafalgar.
I always thought that restraint of trade was an ugly concept, don't you agree?
Andy
-- Edited by AICB on Friday 24th of June 2011 11:02:24 AM
-- Edited by AICB on Friday 24th of June 2011 11:20:29 AM
