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The Book-keepers Forum -> VAT, Payroll & Tax -> Payroll
Post Info TOPIC: Payroll
kjmcculloch83


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Date: Thu Feb 16 15:18 2012
Payroll
 

Ok, I said I wouldn't do payroll, but now I am.  I have a client who wants to employ his son.  The boy is 22, and has no other employment.  He will be employed for 20hrs a week at NMW.  

From my calculations that takes him over the LEL and therefore my client needs to register as an employer.  But the boy doesn't make enough for either to need to pay anything.

I assume all the normal returns will still be submitted to HMRC but they just don't take any cash, am I right?

Kris



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Tom McClelland


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Date: Thu Feb 16 15:22 2012
 

20 hours @NMW comes to more than LEL, so the employer would need to register as such and file P35/P14 with HMRC at year end.

But there would be no PAYE or NI to pay, with the facts as stated.

 

MY 100th POST!



-- Edited by Tom McClelland on Thursday 16th of February 2012 03:56:55 PM

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kjmcculloch83


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Date: Thu Feb 16 15:25 2012
 

Thanks Tom,

So nothing required on a monthly basis then?

I think I'll be downloading a copy of your software for this one.

Kris

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Tom McClelland


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Date: Thu Feb 16 15:50 2012
 

You need to file a "no payment due this quarter" 4 times a year (having arranged to pay quarterly). Otherwise they chase you for the money.

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kjmcculloch83


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Date: Thu Feb 16 15:56 2012
 

Thanks for your quick answers Tom.

Kris

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Shamus


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Date: Thu Feb 16 16:00 2012
 

Just to add to Tom's post.

You would need this page that they seem to have done their best to hide : http://www.hmrc.gov.uk/tools/payinghmrc/no-quarter-payment.htm

(or the monthly version of it).

However, assuming that the father still comes under PAYE then the company would still be making payments so you would just use the normal payment methods with no need to file a no payment due notification.

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kjmcculloch83


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Date: Thu Feb 16 16:06 2012
 

Cheers Shaun,

Strangely when I googled Toms "no payment due this quarter" thats the first page that appeared.

The son will be the only employee, the dad is a sole trader.

Kris

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Spamkebab


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Date: Thu Feb 16 16:18 2012
 

I'm sure that's not what the son calls him, Kris lol

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