Company and PAYE

rob290482

Hi could someone please advise on the following? I'll try to keep it simple. I would get an accountant but only expect income to be in the region of £4,000.00 this financial year and relatively short lived work.

* I have a Ltd Company with myself and my wife as Directors.

* We started trading this August and only expect the work to be 3 months long at most.

* My wife is also employed as a Carer via DWP and gets £59.75 per week.

* I am employed for an other company.

* As my wife has a lot more spare time than me she is to do all the admin work and be paid £100.00 per week for it as an employee. I will not be paid anything via PAYE other than a Dividend if we declare the same.

Questions:

1. Do i need to register for PAYE as my wife is employed for under the NI threshold but with her DWP payment it exceeds the same?

2. Does the DWP payment get taken into account for NI (i would assume so). And on that basis the Company and she would pay NI contributions via PAYE.

3. Would we need to register anyway as we are Directors? I wouldnt assume so as there is no PAYE other than my wifes. The rest would be Dividend.


Thanks

Rob

AbbieCadabra

i can't answer your NI query but my understanding is that any wages paid to an employee must be reported in advance to HMRC under RTI rules, info here, obviously this means you should be registered for PAYE as an employer.
edit - as per HMRC guidance:
When you need to register as an Employer - As soon as you first employ someone, you will need to register as an employer with HMRC if any of the following is true:
you're paying them at or above the PAYE threshold
you're paying them at or above the National Insurance Lower Earnings Limit
the employee already has another job
they are receiving a state, company or occupational pension
you're providing them with employee benefits
You might need to register as an employer even if you're the only person working in your business (perhaps because you're the only director of your limited company). If any of the conditions above apply to you as an employee, you'll need to register - you'll be both the employer and employee.

RTI came in this financial year but i believe they are being lenient with penalties until October to enable employers to get 'used to' the new rules/reporting required (this is what HMRC told me a couple of months ago when i had queried something else with them). i think it can take a short while for your PAYE info to come through & you can file online, so i would do this asap.

our Ltd. Co. is a similar set up with 2 directors - both on the basic tax code, minimum amount in wages per month (£640 currently, NI credit applies at this level but no additional NI to pay) then the balance in dividend (if profit available).

i know i wouldn't entertain the thought of filing Ltd Co. accounts, is this something that you've done before?

LittleVoice

r!!!90482 wrote: »

Hi could someone please advise on the following? I'll try to keep it simple. I would get an accountant but only expect income to be in the region of £4,000.00 this financial year and relatively short lived work.

* I have a Ltd Company with myself and my wife as Directors.

* We started trading this August and only expect the work to be 3 months long at most.

* My wife is also employed as a Carer via DWP and gets £59.75 per week.

* I am employed for an other company.

* As my wife has a lot more spare time than me she is to do all the admin work and be paid £100.00 per week for it as an employee. I will not be paid anything via PAYE other than a Dividend if we declare the same.

Questions:

1. Do i need to register for PAYE as my wife is employed for under the NI threshold but with her DWP payment it exceeds the same? See 3

2. Does the DWP payment get taken into account for NI (i would assume so). And on that basis the Company and she would pay NI contributions via PAYE. Unlike Income Tax where eventually all your income is added together for the year, NI is paid per payment, separately for each employer. So for £100/week no NI is due.

3. Would we need to register anyway as we are Directors? I wouldnt assume so as there is no PAYE other than my wifes. The rest would be Dividend. The company needs to register with HMRC as an employer because though not paying above weekly thresholds for NI and tax, its one employee has another job.


Thanks

Rob

.................

rob290482

Hi,

Thanks for the info. I'll get registered with HMRC for PAYE.

On another note. I ideally wanted to make the first wage this 31st but assume i may not get the PAYE reference numbers etc by then. Would i need to wait or pay now and sort out the PAYE stuff at a later date?

As for the Accountant. I am have to get someone in for filing the annual return. Thats not due until 31st Dec (made up to date that is) though

Rob

AbbieCadabra

if you've not paid any wages yet, then ignore what i said about penalties under RTI as obviously this won't apply. i'm pretty sure you'll need to wait until you get your registration details etc but a call to HMRC would clarify this.

our accountant doesn't file our Annual Return, i do that as it's straight forward & doesn't really change each year. i do all our book-keeping/PAYE/VAT & our accountant does our annual accounts, corporation tax return & personal tax returns. we use an online service which i would recommend & it costs a lot less than what we used to pay our old local accountant (& it's a much better service too).

Wywth

r!!!90482 wrote: »

Hi could someone please advise on the following? I'll try to keep it simple. I would get an accountant but only expect income to be in the region of £4,000.00 this financial year and relatively short lived work.

* I have a Ltd Company with myself and my wife as Directors.

* We started trading this August and only expect the work to be 3 months long at most.

* My wife is also employed as a Carer via DWP and gets £59.75 per week.

* I am employed for an other company.

* As my wife has a lot more spare time than me she is to do all the admin work and be paid £100.00 per week for it as an employee. I will not be paid anything via PAYE other than a Dividend if we declare the same.

Questions:

1. Do i need to register for PAYE as my wife is employed for under the NI threshold but with her DWP payment it exceeds the same?

2. Does the DWP payment get taken into account for NI (i would assume so). And on that basis the Company and she would pay NI contributions via PAYE.

3. Would we need to register anyway as we are Directors? I wouldnt assume so as there is no PAYE other than my wifes. The rest would be Dividend.


Thanks

Rob

1. Yes
2. No
3. N/A - (see 1)

Wywth

r!!!90482 wrote: »

Hi,

Thanks for the info. I'll get registered with HMRC for PAYE.

On another note. I ideally wanted to make the first wage this 31st but assume i may not get the PAYE reference numbers etc by then. Would i need to wait or pay now and sort out the PAYE stuff at a later date?

As for the Accountant. I am have to get someone in for filing the annual return. Thats not due until 31st Dec (made up to date that is) though

Rob

You should contact HMRC immediately if you are employing people. Normally HMRC conatct any new start limited company to find out what your plans are, and if you are employing people they will set up PAYE for you.
Did you tell them you were not employing people when you were?

You won't really need an accountant to file an annual return (but they will do it for you if that is what you want.)
The annual return just asks simple questions about the company, e.g. confirm directors, shareholders, registered office, etc. Also annual payment to companies house which I think is £13 if done online currently.
You may need an accountant to prepare your annual accounts.

rob290482

Hi again. Thanks all for the info. I rang HMRC and let them know about it. They are sendingout the detials i need. Forgot to ask about actually making payment the end of the month but as its the other Director and i am sure there will be no issue for late payment of wages

How much would an accountan be for just sorting the end of year stuff? I have already done the annual return (£13 fee one) that was very straight forward. My account reference date of 31st Dec 2013 so got some time to sort out the rest.

Rob