I have a client who is a Director, he paid himself this month but without notifying me. I was in the process of taking over payroll so hadn't confirmed pay dates and amounts. He is one of those clients who needs lots of chasing etc. His payroll was being done by his accountant and as I have agent status I know he has had previous late filing notices, all in the last tax year.
What is the best course of action? I think my options are:
file late,as its the first late filing in the year there is no penalty. I won't be filing late, unlike his previous payroll.
as he is a director file saying he wasn't paid this month, put it to DLA and then pay him more in month 12
Has he actually taken a wage, or just repaid some of his loans? If the latter, do the payroll on the normal day and tell him if he does it again he will have to pay the fines for later RTI?
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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
He has taken a wage - he has overdrawn Dir loan. His Payroll date is 11th of the month, he says he will need to take more than the min (for tax/NI) but I can't get him to understand the RTI and tax implications. What do you suggest?
I would put it very firmly in writing, don't pull your punches, advise him that fines have been waived up to now but no longer. Send him an extract of the relevant part from HMRC, not on a link, actual copy. Plus that you are not responsible for any fines if you don't have the info in time. I had the same with a client, so I introduced a cut off date a week prior to pay day. He didn't get it for a few months and used to contact me on payday, but one month I emailed him and told him I would be around so if he didn't get me the payroll info by cob the day after cut off it wouldn't be done and he would be fined. Sometimes you just have to be blunt if they don't get the message. It worked for mine....in the end!!! Maybe show how much he would've paid he fines been levied.....that usually does the trick!
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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
Up to you. Depends on your client, probably DLA and file, but absolutely on his understanding and agreement that's it's on a non precedent basis and if there is an inspection it's his problem. Are there profits to clear the DLA with a divi or is it loss making? I tend to take a pragmatic view, but it goes to knowing your client. I have one who would try to get me to do it every time, so I won't bend the rules for him even as a one off.
-- Edited by Cheshire on Monday 20th of April 2015 08:13:54 AM
__________________
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
