hello I am working a full-time in the company CUP for 5 years . Because I paying tax a nin so I must be register in PAYE system. In 2009 I set up a limited company with my partner and we are a 2 directors of this company. we don't have any employees. As a directors do we need to be register in PAYE system in our limited company ?
The question seems a little bit mixed up so I'll state what I think you are asking :
"must a company with two directors and no employee's be registered for PAYE?".
Yes.
even if there is only one person in the company you must be registered for PAYE.
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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.
we are 2 directors in Limited company which was set up recently in 2009 .profit from tthe company was paid as a devidend, no monthly salary. The important things we also have another jobs where we working for 5 years, and we paying tax and NIN!
What about PAYE system in limited company ? Do we need to be register if we already register in our jobs
Magdalena, I am sorry to say you could be in for a lot of late filing penalties, so I would seek real-life advice on this matter. Hopefully some clever accountant can minimise the fines.
Is it still £100 per month? The last case that came my way only got a £400 penalty even though he was 10 months late.
I'm slightly surprised at the unanimous answers I've noticed in this thread.
Not a subject I'm an expert in, so I could be wrong. We only get involved after people have decided that their company *is* an employer.
But I'll stick my neck out anyway, because perhaps I'll learn something.
I wasn't aware that there was any requirement for a LTD to register for PAYE unless it actually employs someone. ie pays them for work done. A director who draws no salary wouldn't require the company to register for PAYE, or every company would have to register! If the directors simply take dividends and there are no other employees then the company isn't an employer. The OP didn't actually mention that their company has paid them anything in the way of earnings for work, unless I've missed something or misunderstood.
Good point Tom, and I may learn something here too. Somehow, whenever I form a new company, a PAYE Scheme is set up and I receive the usual bumph. I'm pretty sure I've had this happen even when the company hasn't yet commenced trading.
I can see where HMRC are coming from. In a trading company, it is likely there will be reportable expenses if not benefits in kind.
Magdalena, if I've worried you I'm sorry, but the fines might arrive automatically even if they are cancelled on appeal.
----------------------------------------- ....... When you need to register You don't necessarily need to register as an employer once you take someone on. Check first that at least one of the following conditions applies to you. If any apply, then you need to register:
the employee already has another job they are receiving a state or occupational pension you're paying them at or above the PAYE threshold you're paying them at or above the National Insurance Lower Earnings Limit you're providing them with employee benefits If you need to register you can do so up to four weeks in advance of your first pay day.
Bear in mind that you might need to register as an employer even if you're the only person working in your business. If you run a one-person limited company, you'll be both an employer and an employee. So if any of the conditions above apply to you as an employee you'll need to register. ....... -----------------------------------------
-- Edited by dobbsd on Thursday 7th of July 2011 01:44:16 PM
