Hi Doug

Can't say I have Doug, other than if no payroll in place and below LEL.

Someone somewhere seems to be playing loose and fast with the word Salary whch implies a PAYE arrangement where I am reading this that the director of the company charges a fee for their services implying to me that the director is self employed charging a fee for his services to his own limited company. If that is the case then should not his self assessments have been completed on the basis that he is self employed and a director.

OR... a more likely scenario if the above is not the case is that company B (the one you are looking after) is charging a fee to company A for his services in which case that is further income for the company that you are dealing with that needs to be accounted for.... But that fee is not salary!

Fee is such a little word with such big connetations! You need to know the full story here and it sounds as though your director client is clueless as to what the accountants have been doing so you may need to get his permission to go directly to his accountant with the larger firm.

Good luck Doug,

Shamus.

 

Thanks for the replies

Similar thoughts to my own regarding is he Invoicing as self-employed to the Company (which he says he is not) and then that means submitting on his SA also the question of class 2 N/I, have asked him to phone and clarify but he was told they would get back to him which they had not as of yesterday, so hopefully will find out more today, as you say it is the word 'fee' that needs explaining

Cheers

Cheshire wrote:

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Artois wrote:

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 Only trouble with that, potentially Doug, is the chance of Chinese whispers or more likely further mis-interpretation. Will he allow you to speak to them - I wouldnt be afraid of pulling them up if they are wrong (in the nicest way of course).  Ive just had to pull another firm up about an opt to tax.

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 I have not heard anything back yet, they were meant to be having a telephone call back yesterday for which they were charging him the lovely fee of £100, so I do not think I will be asking to speak to them, and I nearly choked when told what they charged monthly.

Will let you know when I hear any more

Cheers

Hi Doug
We are all assuming of course that this is above the LEL.

Never mind playing fast and loose with the term fee as Shaun suggested, I think they are playing fast and loose with this poor guys NI record and future pension, as Im of the same view as you.

Its long been the rule that you can pay payroll without a PAYE scheme in certain set conditions. Interestingly, for those who missed it, HMRC got rid of one of those requirements, but certainly still state that if at least one employee earns at or above LEL (or has another job) then it has to be reported via PAYE (on or before, subject to the other usual exemptions).

Apart from the annual pay period option, Director's are treated no differently to other employees.

I think he should check his NI record to match missing years v years completed by the firm (and earlier).

Lets just hope he doesnt want to furlough - because they will have prevented that. (All those firms that suggest an annual payroll, ight be kicking themselves as well now!)

Loving the way this firm are blaming the previous firm. Just because they inherited it doesnt mean they shouldnt have sorted it out - ridiculous!!! But then thats just like someone on Aweb this week - blaming the *** (her words) bookkeeper for not setting up a payroll scheme 2 years ago, for why they cannot claim furlough now....despite the Accountant being fully aware at the end of year one and doing ZERO about it. I challenged her on that one, fed up of the bookkeeper bashing when there was clear blame to be apportioned on the said Accountant as well.