First of all it annoys me how you try to ring HMRC and just because they are busy with other calls (I might wish to hold!) they just cut you off and say ring up another time rrrrrrrr! I know its year end but give everyone a fighting chance to get through instead of cutting them off.
My problem is, I rang HMRC a few weeks ago regarding a client who's staff work from 4 - 15 per week, paid in cash and all below the LEL. HMRC told me that they did not need to run a PAYE scheme and can just carry on as they are. I questioned this and said to them well what if their employee works for lots of companies in the same way and altogether were earning a hefty wage all in cash. HMRC said that this would be the responsibility of the employer to have the employee sign a P46 showing their statement.
Anyhoo, today I have noticed on the HMRC website:
Lower paid, temporary, irregular and casual staff You'll need to report payments to all staff no matter how much you pay them, even those earning below the Lower Earnings Limit or those paid just once a year. So you'll have to enter details of these employees onto your payroll system. Be sure to get their employment status right.
If appropriate, set the irregular payment indicator so HMRC doesn't assume that they've left your employment just because they haven't worked for a while.
Is it me going mad or not understanding things properly or are HMRC contradicting themselves?
I am self employed (as well as working for a comapny who I have just posted about) and employ one girl - a student on a Friday night/Saturday mornign who earns under the LEL.
The above applies only if you already run a PAYE so if you have anyone earning above the LEL then you have to report everyone even those earning below.
However if everyone earns under the LEL then you don't have to run PAYE and report anyone.
It is so confusing and not helpful when you find out the HMRC helplines are £1.50 per minute!
The text you've highlighted only applies if a PAYE scheme is running. If all employees earn below LEL and a P46 with A or B ticked is held for all employees then no PAYE scheme is required.
Incidentally at one point I did have someone who althought she earnt under the LEL altogether had two jobs (me and a waitressing job). In order that I didn;t have to run PAYE and deduct BR tax she wrote to the IR and got permission in writing for her tax code to be split.
