I am currently doing the payroll for a small business and have been asked for a p60 for some one that takes £5000 per year from the business but is not on the payroll , also i had a tax code notice of BR for this person but i have not paid any tax for her through out the year as she was not on the payroll . What forms etc should i be filing for her with the employer end of year returns .
Clearly such a person does not yet qualify for a P60, as they haven't had P11s prepared for them.
At the moment, so far as you are aware, they aren't an employee. Their payments must have some other status!
The business may wish to clarify what has been going on, and there may be £1250 of retrospective PAYE to declare if the person is in reality an employee with net pay of £5000pa. (6250-20%=5000)
Following on from what Tom has said, has the company complied with the national minimum wage legislation. HMRc pursue breaches of this legislation with a lot more vigour than others.
If the coding notice showing BR was addressed to the business then HMRC think that person is employed by said business and they should be on the payroll and the £5000 grossed up and tax declared and paid - by 19 May on the P35. If the coding notice was addressed to the individual then there are other possible scenarios: they could be acting in a s/e capacity whilst working as an employee elsewhere - are there invoices from said individual ?
