I am established as an Ltd in England where I am the only employee receiving 800 pounds/month wage. I am hoping the Ltd will be able to have a positive balance someday next year and I will finally receive my salary in a retroactive basis. Despite not receiving my salary for now I believe this arrangement allows me contributing to my pension, etc without paying much NICs/tax until I reach the time to generate some profit. Regarding my 2014-15 accountability I have not reported the RTI PAYE since August 2014 (I thought I could do it at the end of the 2014-15 tax year) and I have submitted only one EPS in October 2014. I just realised the Gov is applying penalties for late reporting since late 2014 and I have missed other reporting documents like the FPS. How would you recommend reporting from August 2014 up to now to minimise the penalties that would apply for late reporting? Thank you for your time.
You should have been filing monthly FPS's, not EPS's.
You say that you are paying yourself but not taking the money. That means that your money goes to the Directors Loan Account effectively saying that you are loaning the company that money.
Your self assessment will show £9600 received but at the moment there are no PAYE filing to match that against.
Regardless of whether any money physically moves (rather than simply being put to the DLA) the penalties for non filing are the same.
You should have signed up with HMRC for the Annual scheme which requires only one annual filing.
At the moment it seems that you owe £500 in penalties for five missed payments (penalties were not charged until April 2015 for companies with fewer than 50 employee's).
I beleive that HMRC have little scope for negotiation on this sort of automatic penalty, only scope to cancel if issued in error.
My personal approach would be to talk with HMRC, be open and honest about your genuine mistake and request to be moved to the annual scheme. I still think that you will be hit with a penalty though.
I would wait until others have answered before acting on that though as I'm no payroll expert.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
