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• # 83614
• Sun 01 Jul 2012 06:51 PM

Hello,

My client who runs a Ltd company has just taken on an employee who will be working part time and will be paid £408.00 per month. I have not studied payroll and I intend to use 12Pay Payroll software which seems very straight forward and user friendly.

 Do I need to inform HMRC straight way about my client taking on a new employee given that the employee will be earning less than £107.00 per week?

Your replies will be very much appreciated.

Rez 

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• # 83616
• Sun 01 Jul 2012 08:16 PM

Hi,
Is client registered as an employer? Normally the directors of Ltd companies are on payroll.
If client is registered as an employer then the answer is yes and you would have to get either a P45 from employee or have them complete a P46. All these have to be filed online now.
If client is not registered as an employer then providing the wages are kept below the current threshold they would not have to be told but you would still have to keep records of payments made and employee details in the event of an inspection. You would also have to issue a payslip.  In this instance payroll software would not be required.
However, if employee has another job as well then Ltd company would have to register as an employer because the employee would be liable for tax at code BR regardless of amount being paid.
Hope this helps!
Marilyn
 

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  A wise person avoids it.

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• # 83656
• Mon 02 Jul 2012 08:52 PM

MM Bookkeepingsaid:

“Hi,
Is client registered as an employer? Normally the directors of Ltd companies are on payroll.
If client is registered as an employer then the answer is yes and you would have to get either a P45 from employee or have them complete a P46. All these have to be filed online now.
If client is not registered as an employer then providing the wages are kept below the current threshold they would not have to be told but you would still have to keep records of payments made and employee details in the event of an inspection. You would also have to issue a payslip.  In this instance payroll software would not be required.
However, if employee has another job as well then Ltd company would have to register as an employer because the employee would be liable for tax at code BR regardless of amount being paid.
Hope this helps!
Marilyn
 ”

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