if a sole director of a company has a payroll scheme in place but has not run the payroll for the last 18 months because he didn't want to pay anyone to do it but hasn't taken a salary from the company anyway would I have to submit nil PAYE reports?
if a sole director of a company has a payroll scheme in place but has not run the payroll for the last 18 months because he didn't want to pay anyone to do it but hasn't taken a salary from the company anyway would I have to submit nil PAYE reports?
Georgie
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Not sure whats happened here Joanne your name has appeared under my question.
I will try and rephrase my question and hopefully someone can answer it for me.: If a Director has a payroll scheme in place but has not submitted anything or paid themselves a salary for 18 months and now wants to close the payroll down, what is it I need to do? I know that an EPS should have been submitted but don't know what it is I should be doing now after the event so to speak. I did wonder as there has been no activity for over 3 months that HMRC have closed the payroll scheme down anyway?
This next bit sounds like a daft question but the client also wants a P45.....I am wondering how that's possible if they haven't been paid??
If there have never been any employees on the payroll earning over the NI threshold then there is no need to send in a FPS. You don't need to send in an EPS either. It may be a good idea to phone HMRC to find out about closing down the payroll scheme, although unless you are his Agent it might be best to get the Director to do it. Is he sure that he will not need this in the future though? Is he just going to be drawing dividends?
Not sure why he'd want a P45 if he hasn't been paid at all. I suppose the payroll software will produce a P45 with 0.00 figures, never tried it
If he has never been processed on payroll the software will not produce a P45, if he has been processed as zero pay then an EPS should have been submitted each pay period and the software would issue a P45
Usually you close a payroll down at tax year end when you submit the year end reports unless the company is closing and you are submitting it early
Very odd about my signature Georgie. I typed a response of about 3 lines the other day and then my PC froze. I typed it all out again and sent it! Anyway the ladies have answered you better than I did.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
