Client with one employee under LEL has taken on another, over LEL. I've registered them for PAYE but what to do with previous pay for the existing employee, when entering on Moneysoft.
Im tempted to just put the individual amounts in from April but I'm worried that this will create a penalty situation for the employer. An alternative is to complete an employee joining statement box B but then HMRC will have missing information and give an incorrect starting date.
Any thoughts?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi John
Good one - not thought of that as Ive not had the scenario crop up! I would think you would need to use the 'mid year start' routine in Moneysoft as you would if you were transferring payroll - so effectively importing the YTD data for the existing staff as if you had a P11 for them (which in your case will just be your excel/back of a fag packet data). There are a couple of guides on the help files - Starting as an existing employer and mid year start data. I believe that this method will prevent a request to submit 'previous period' RTI reports. Might be worth a quick check with the helpdesk.
Let me know when you find out for sure please.
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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 suspect the penalty systems will not levy fines prior to the beginning date of the PAYE scheme. Even so, completing Statement B would muddy the field in the event of an Appeal.
I would complete the software as you've suggested, from April - without a starter form, because none of the Statements are true.
As a side note, I wonder whether it is always a good idea to comply with RTI even when you don't have to. This way, you hand HMRC the responsibility for coding employees correctly - for instance, when an employee takes on another job without informing your client.
As a side note, I wonder whether it is always a good idea to comply with RTI even when you don't have to. This way, you hand HMRC the responsibility for coding employees correctly - for instance, when an employee takes on another job without informing your client.
Kind regards, Tim
I wonder how many run a payroll without realising they dont need to in such circumstances. Although Ive noticed a few who seem to think they can run a payroll without informing HMRC - now thats an interesting conversation to have when we have to fix it!
__________________
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
Hi John Good one - not thought of that as Ive not had the scenario crop up! I would think you would need to use the 'mid year start' routine in Moneysoft as you would if you were transferring payroll - so effectively importing the YTD data for the existing staff as if you had a P11 for them (which in your case will just be your excel/back of a fag packet data). There are a couple of guides on the help files - Starting as an existing employer and mid year start data. I believe that this method will prevent a request to submit 'previous period' RTI reports. Might be worth a quick check with the helpdesk.
Hi John Good one - not thought of that as Ive not had the scenario crop up! I would think you would need to use the 'mid year start' routine in Moneysoft as you would if you were transferring payroll - so effectively importing the YTD data for the existing staff as if you had a P11 for them (which in your case will just be your excel/back of a fag packet data). There are a couple of guides on the help files - Starting as an existing employer and mid year start data. I believe that this method will prevent a request to submit 'previous period' RTI reports. Might be worth a quick check with the helpdesk.
Let me know when you find out for sure please.
Joanne, you are a star! I know it wasn't your favoured suggestion but adding an existing employee works. I created a dummy new employer from 1st June and then added existing employee, and did weekly payroll from April. Wants me to submit RTI only for this week and shows total accumulated from 6th May to 5th June, so I'm assuming on the RTI it will have the P11 details from April. I will ring the helpdesk on Monday just to be sure and let you know.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I suspect the penalty systems will not levy fines prior to the beginning date of the PAYE scheme. Even so, completing Statement B would muddy the field in the event of an Appeal.
I would complete the software as you've suggested, from April - without a starter form, because none of the Statements are true.
As a side note, I wonder whether it is always a good idea to comply with RTI even when you don't have to. This way, you hand HMRC the responsibility for coding employees correctly - for instance, when an employee takes on another job without informing your client.
Kind regards, Tim
Cheers Tim, looks like adding existing employee bypasses the starter form and allows you to input data from April, then you only have to do RTI from the start of the PAYE scheme, so I'm happy with that if it's correct.
Yes, running a paye scheme even when not required is good because, as you say, what happens if your employee gets another part time job and doesn't tell you.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
