My taxi driver client employs a lady as a school escort and pays her when he receives the payment from the County Council.
This month they have paid him earlier than usual so he's paid the employee today. He also paid her on 13th March. I've combined the two payments and will redo the RTI but I'm unsure whether to leave the date or change it to 2nd April
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Payments are taxable on the contractual payment date but in this case I'd say the contractual payment date is an open one according to when they actually pay.
I'd be inclined to use the later date but this is 2 payments so strictly speaking they should be taxed and NI'd today and 13th March. If that is not possible with the software, then what can you do except use the later date in case the 13th March becomes counted as a late filing.
Right, so if he has no other employees, does he need a PAYE scheme.
I was just thinking hypothetically of the same question. I've got one that pays about twice a year and Moneysoft has received some criticism for not being flexible as regards pay intervals. I'd be loathe to enter bi-annual if this becomes inflexible. Just going to trial Brightpay.
Right, so if he has no other employees, does he need a PAYE scheme.
I was just thinking hypothetically of the same question. I've got one that pays about twice a year and Moneysoft has received some criticism for not being flexible as regards pay intervals. I'd be loathe to enter bi-annual if this becomes inflexible. Just going to trial Brightpay.
Probably not, thinking about it. However as the employee is in receipt of some in-work benefits, it's probably best to run it through payroll so that the RTI is utilised for it's intended purpose
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Direct from HMRCs website John......Youre exempt from PAYE if none of the employees is paid £111 or more a week, gets expenses and benefits, has another job or gets a pension.
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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
Thanks Jo. It rather defeats the true purpose of RTI though don't you think, which was to assist those in receipt of benefit for a smooth transition between benefits and work, giving DWP real time info on income received.
Actually I've just had a thought (dangerous I know!) What happens if you have an employee, who's under LEL and you're not running a payroll. The employee gets another part time job, that the employer is unaware of, and from then on should be operating a paye scheme?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Absolutely defeats the object, that's why HMRC are a bunch of numpties!! Defeats the object too when one company sends a P45 / leaver information in yet six weeks later the employees new company are still taking tax off at BR rate....this happened to my son and we have proof of who did what when so it's HMRCs fault. Although the second company he was working for I think bear some of the responsibility as how the hell could someone be on a BR code ie have another job, when they are working 80 hour weeks for you! Unless they NeVER sleep of course. But I do understand it's not their responsibility to determine what someone is or should be on code wise, before someone jumps on my case. Just saying!!
I agree on your thought process about other jobs as well.......they are the people most likely to have more than one job I would've thought.RTI = just another chance for HMRC to charge fees!!
Far too dangerous to be thinking John....need to lie down in a darkened room now!!
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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
I agree entirely with your sentiments btw, but are we not bound by the tax code provided by HMRC?
I had a case a 2-3 months ago when I was issued a tax code (1) of 550 or there abouts. I realised it would have an impact on the employee concerned so let my client know. That tax code was renewed for the 2015-16 year and last week my client rang me to because the employee had done quite a few extra hours and couldn't understand why she was being taxed. Turns out this employee gave up her other part time job at Christmas!!!!! All I could suggest was to ring the tax office.
(1) How do I get the tax codes emailed or being able to download them via Moneysoft? I receive notifications by post if a tax code changes but reading a thread on here a couple of weeks ago suggests you can get them by email or moneysoft too. I was in the middle of moving the agent stuff to Leger at the time so never raised the question.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I agree entirely with your sentiments btw, but are we not bound by the tax code provided by HMRC?
I had a case a 2-3 months ago when I was issued a tax code (1) of 550 or there abouts. I realised it would have an impact on the employee concerned so let my client know. That tax code was renewed for the 2015-16 year and last week my client rang me to because the employee had done quite a few extra hours and couldn't understand why she was being taxed. Turns out this employee gave up her other part time job at Christmas!!!!! All I could suggest was to ring the tax office.
Yes we are bound by the tax code we are given, but I work on the basis that if something looks SO BADLY wrong then why not challenge it or as you did - let your client know/suggest the staff member ring HMRC, but at least you suggested it! The one with my son clearly was annoying cos the Payroll Manager knew he was doing 80 hours and Im talking EVERY week and all he had to say was as you did. Mind you I said it and because he was working 80 hours the poor lad didnt have time to ring the tax office.
Ive had two appear for a Director which they do wrong EVERY year and then re-send the correct ones after I contact HMRC. Every bloomin year!
Re downloading tax codes via Moneysoft - I only learnt that on here thanks to Frauke recently (thank you Frauke) ......click on Tools, then download tax codes and you have the option of this/next year and archive. I dont know if you have to be listed as an agent or not.
Re emails - when you list as an agent you can set up your email address for notices under your HMRC agent login. Or your client can set up your email address for notices under their HMRC login....this can be for VAT too (they will then email you a reminder to do the VAT return!). Its in the 'your account' section after login in if I recall correctly. Much better than relying on paper based ones!
-- Edited by Cheshire on Friday 3rd of April 2015 11:56:48 AM
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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
Re downloading tax codes via Moneysoft - I only learnt that on here thanks to Frauke recently (thank you Frauke) ......click on Tools, then download tax codes and you have the option of this/next year and archive. I dont know if you have to be listed as an agent or not.
Re emails - when you list as an agent you can set up your email address for notices under your HMRC agent login. Or your client can set up your email address for notices under their HMRC login....this can be for VAT too (they will then email you a reminder to do the VAT return!). Its in the 'your account' section after login in if I recall correctly. Much better than relying on paper based ones!
Valid points re your son. Sounds like we both would have picked up on it had we been doing the payroll (and as a mum you did anyway)
I dd check the moneysoft option when I saw it suggested, and got nothing. I've just been online and although my email is set up on the main screen (I get one everytime I submit an RTI) you also have to set one up specifically for paye notices, which I didn't realise.
I should imagine that once their systems have been updated, I will be able to receive them through moneysoft as well.
You've been really helpful Jo, thankyou.
Credit though where it's due, as you know, I recently changed my business name (and address on their system) so I was expecting a right palaver in getting agent details switched over. It took two weeks and the whole lot was done enbloc.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Have to say - I got nothing for one of my clients for which I am listed as agent but when Ive just checked it today they popped up! Must check the email status of the rest, although I do get them through my normal email inbox. The only one I didnt get online nor via Moneysoft was for my own employee - how odd is that!
What - HMRC did something right! Must be a quiet time - must send my withholding tax forms off to get sorted as theyve been lurking long enough!
No problemo John - I can but try.
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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
Have to say - I got nothing for one of my clients for which I am listed as agent but when Ive just checked it today they popped up! Must check the email status of the rest, although I do get them through my normal email inbox. The only one I didnt get online nor via Moneysoft was for my own employee - how odd is that!
What - HMRC did something right! Must be a quiet time - must send my withholding tax forms off to get sorted as theyve been lurking long enough!
No problemo John - I can but try.
Think I can answer your employee question. I'm assuming you're not the agent for your own company, so you won't get notifications as an agent.. As there will be no agent registered, you will be sent the notifications direct.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
