So, the company I work from went from sole trader to Ltd company - PAYE was changed over and the sole trader all finished up, everyone given P45's etc. One of the staff who was leaving and never moved over to the new PAYE is owed money. I'm not sure how to do this, don't really want to add them to the new PAYE and if they are already working, tax etc..... so do I set up the old PAYE etc via the HMRC tool? but would mean I need to re-employ her etc..... Or do they pay her the hours and she pays the tax to HMRC herself?
Has the old scheme been closed yet? If not, simply re-add the employee and pay them. Remember you will have to do it on a week 1 basis as if it was weekly pay.
If it has, your other option is to add her to the new paye on a BR code to pay what she's owed, then make her a leaver. I would advise against paying her in full.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Oooh thanks for that Joanne, it's something I didn't know. I've had two sole traders that have changed to Ltd Co's, and I changed the flipping paye scheme on both. Not a biggie but it would have saved some mucking about at the time. I didn't issue P45's though, just a mid year change on Moneysoft and closed the old scheme.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
oohh thats a good link - thank you - odd that i was advised to do it too by an AAT person
Odd? On the basis there are not so good as well as good AAT bods then this wouldnt seen off to me. But also, worth mentioning - the AAT do not provide payroll training so strictly speaking, unless they have a good background/QE or have studied payroll then they wouldnt necessarily know. But I always say, never fully rely on what someone else is suggesting - take their information and then go and look up HMRC guidance (take with a healthy pinch of salt), statutue and case law - in everything you do. But be very careful when its employment law - so very easy to get this wrong.
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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
