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Earnings under LEL

  • Member PM.Dip
  • Practice Licence
  • 14 posts
  • # 122500



Can anyone help me with this?


A business with only one employee earning under the lower earning threshold does not have to register for PAYE.

What is the status of the employee. Does the employee need to self declare the income to HMRC, just like a self employed person would have to if earning more then 1,000? Or because there is no tax payable, it does not need to be reported.

  • Fellow PM.Dip
  • Practice Licence
  • 150 posts
  • # 122506

Hello Yisroel,

A business does not neet to register for PAYE if they pay their employees under the LEL and that all employees only work for them.  If an employee has another job or receives a pension then the business will need to gegister for PAYE.

More often that not it is just simplar to registar rather than worring what work your employees are doing for other employers.

The is a fairly simple questionair on HMRC that will help you decide if you need to register

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