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Employees under 16

  • 14 posts
  • # 81405

Hi

I am about to start doing the payroll for a company that employs a few 14/15 year olds.  They have not previously been on the payroll as they only work a few hours each week and don't earn enough to be liable for tax or NI - the employers have just kept their original P46 that they completed and keep a note of how much cash they are paid.  I just want to check that this is correct?

Thanks

Tan

 
  • Member PM.Dip
  • Practice Licence
  • 107 posts
  • # 81472

Hi Tan

I'm no expert but would think that HMRC still need to be informed  and P46 submitted.

Found this on another forum, ( ignore the figures as it's 2010/2011) hope it helps:

"If it is the person's only job (which needs to be confirmed by them completing a form P46) and their pay is less than the NI Earnings Threshold of £110 a week (£476 a month), there is no need to run a payroll because there will be no tax or NI deductions and there will be no need to have a PAYE scheme or file end of year forms P35 and P14.

If their pay is more than the NI Lower Earnings Limit of £97 a week (£421 a month), but less than the ET, there will still be no NI deductions, so you do not need to run a payroll, but you will need a PAYE scheme and will have to file forms P35 and P14 because it is that which establishes the person's entitlement to be credited with the free NI contributions that earns them the state pension entitlement."
  • 14 posts
  • # 81479

Hi Linx

That sounds pretty much as I thought especially as under 16s don't pay national insurance anyway. The only thing I remember from years ago was that HMRC said don't bother submitting a P46 for an employee if there is not going to be any tax or NI paid - but you don't always know at the time if this will be the case1

Thanks for the help

Tan
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