I am a book keeper (record keeper) for my husband and he has taken on a young helper part time paying him £100 a week. I looked on HMRC back in July and it said that due to the low level of his earnings, you do not have to register as an employer. I called HMRC and was told that as well. Apparently we just need to show the wages on the accounts as an expense to the business. He is looking at giving him more hours which will mean he will need to register as an employer.
I'm a bit confused though as for the last 22 weeks he has been receiving wages. If I start using payroll software from December to report the earnings to HMRC, what about the £2200 he has already earned in the current tax year? Im also confused in respect of what would have happened at the end of tax year when it comes to a P60 if her had earned £3200 for instance?
I am a book keeper (record keeper) for my husband and he has taken on a young helper part time paying him £100 a week. I looked on HMRC back in July and it said that due to the low level of his earnings, you do not have to register as an employer. I called HMRC and was told that as well. Apparently we just need to show the wages on the accounts as an expense to the business. He is looking at giving him more hours which will mean he will need to register as an employer.
I'm a bit confused though as for the last 22 weeks he has been receiving wages. If I start using payroll software from December to report the earnings to HMRC, what about the £2200 he has already earned in the current tax year? Im also confused in respect of what would have happened at the end of tax year when it comes to a P60 if her had earned £3200 for instance?
Hi Karen
I do not deal to much with payroll but I would have thought you would have to input the previous payments into your software when you set up the employee as this is going to affect how much tax they pay, you also need to make sure that they did not have any other employment when you were previously paying them.
Hopefully someone a bit more knowledgeable in payroll will be along to give you some advice, what payroll software are you using?
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
I was thinking along those lines as well but HMRC have said that from the date of registration as an employer, the pay from then on will be what goes on the P60 and to just enter the monies paid out prior to that, as an expense of wages in the accounts.
Now that makes more sense!!! Thank you so much. To be honest, the person I spoke to at HMRC didn't really fill me with much confidence. I've still got to get my head around the HMRC payroll software so that will be interesting. I kept saying to him, but the P60 will be incorrect if it's just earnings from November.
