I don't normally practise payroll but have told a friend that I would do theirs because they have one employee that they pay fortnightly. I have download 12pay because it,s free and has the ability to submit RTI to HMRC.
I have a problem though, I have entered his basic pay which is £250 fortnightly but every time I run the payroll it isn't calculating any tax or NI, this should really be added to the £250 that he has paid the employee. Could anyone advise what I am doing wrong, it's very clear but I have looked so hard I can't see for looking now :-/
The second problem is he has paid this bod three times already but hasn't let HMRC know, how do submit RTI for payments that have already been made over the previous 6 weeks?
Did the person produce a P45 or tick a P46. If they ticked a P46 which box did they tick?
Oh, wait a moment, hold that question.... Of the top of my head, £250/fortnight is too low a salary to attract any tax or NI assuming a normal table A 944L situation. So there's your answer.
In reply to the second question, just create a payroll backdated to the first period that the employee worked, calculate the pay, and advance the payroll to file it. Then the calculation and advance/file until the payroll has caught up with "now".
I have just realised that he won't pay any tax because he is below the PA threshold (sorry have a stinking cold at the mo and not thinking straight at all).
If anyone has any advice on what to do about the previous payments and RTI that would be great.
What to do about the previous payments is covered in my second answers. Just start the payroll operations from when the employment started and work forwards from there, filing as you go.
