How to calculate PAYE Arrears ?

[ryuma87]

I would to say thank you to the people who have helped me in my previous post.
Really, it is so much appreaciated.

I have found that a PAYE has been opened, chasing and chasing and chasing, my old accountant (an online accountancy agency, please avoid if you are thinking about them).
However, he has never submit any of my payroll in the tax year 21/22 to HRMC on the company behalf.
I would like to understand roughly how much the company has to owe in terms of arrears and penalties, I am also considering to sue my old accountant agency for negligence or bring him in civil action, if it worths.

Is there any way/method/formula to calculate roughly a PAYE Arrears, including penalties to understand how much I have to owe ?

I have done a research but i have just found bits of information, without a clear mathematical way to apply on my case.
This is not for a payment to HMRC, is just for me to understand how much I should expected.
Would you mind to help me, if you know, to understand if there is an empiric way to calculate this amount ?
My mind is running and expecting thousands of pounds. The limited company has a sole director, myself.

Fiscal Year: 2021/22
Salary type: monthly
Salary amount: 736 £ fixed + "x" dividends (varies, but not more than 800£ monthly)
Number of Salaries Payments : 9
First payment: 2/09/2021
Last payment: 22/04/2022

Thank you in advance to everyone can help me to figured out these.

Have you a lovely weekend.

 

[DWS]

If neither your previous or present accountants are helping then the only other people who can help you here are HMRC, you need to contact them to find out what penalties are involved and then take it from there.
From what you have said above there is not only PAYE for the 2021/2022 tax year but if you received a payment on 22/04/2022 then this would be in the 2022/2023 tax year, is the the payroll scheme still open in which case HMRC would still be expecting submissions? but then on the other thread you mention receiving a P45 so was the scheme closed down at the same time?
Any dividends you have been paid do not go on the PAYE submissions they would be included on your self-assessment.

 

[Newchodge]

I would to say thank you to the people who have helped me in my previous post.
Really, it is so much appreaciated.

I have found that a PAYE has been opened, chasing and chasing and chasing, my old accountant (an online accountancy agency, please avoid if you are thinking about them).
However, he has never submit any of my payroll in the tax year 21/22 to HRMC on the company behalf.
I would like to understand roughly how much the company has to owe in terms of arrears and penalties, I am also considering to sue my old accountant agency for negligence or bring him in civil action, if it worths.

Is there any way/method/formula to calculate roughly a PAYE Arrears, including penalties to understand how much I have to owe ?

I have done a research but i have just found bits of information, without a clear mathematical way to apply on my case.
This is not for a payment to HMRC, is just for me to understand how much I should expected.
Would you mind to help me, if you know, to understand if there is an empiric way to calculate this amount ?
My mind is running and expecting thousands of pounds. The limited company has a sole director, myself.

Fiscal Year: 2021/22
Salary type: monthly
Salary amount: 736 £ fixed + "x" dividends (varies, but not more than 800£ monthly)
Number of Salaries Payments : 9
First payment: 2/09/2021
Last payment: 22/04/2022

Thank you in advance to everyone can help me to figured out these.

Have you a lovely weekend.

When did you become a director of the company? What is your tax free allowance?

 

[ryuma87]

If neither your previous or present accountants are helping then the only other people who can help you here are HMRC, you need to contact them to find out what penalties are involved and then take it from there.
From what you have said above there is not only PAYE for the 2021/2022 tax year but if you received a payment on 22/04/2022 then this would be in the 2022/2023 tax year, is the the payroll scheme still open in which case HMRC would still be expecting submissions? but then on the other thread you mention receiving a P45 so was the scheme closed down at the same time?
Any dividends you have been paid do not go on the PAYE submissions they would be included on your self-assessment.

My self assessment has been done in october 2022.
Yes, I have received a P45 from them but it was "weird" as everything was compiled as 0 and no paye ref number was included. I am not really sure if was actually issued.
This has been issued when i joined in the other company as employer, and i put my company dormant.
yes, you right, also the year 22/23 is included as the last payment has been done end of april 2022.
Is the P45 a form to close the scheme ?

When did you become a director of the company? What is your tax free allowance?
Since the incorporation, so 20 June 2021.

My Tax free allowance for that year was 12570 £, for this reason i was paying myself 736£ according to what they have suggested.

 

[Newchodge]

My self assessment has been done in october 2022.
Yes, I have received a P45 from them but it was "weird" as everything was compiled as 0 and no paye ref number was included. I am not really sure if was actually issued.
This has been issued when i joined in the other company as employer, and i put my company dormant.
yes, you right, also the year 22/23 is included as the last payment has been done end of april 2022.
Is the P45 a form to close the scheme ?

When did you become a director of the company? What is your tax free allowance?
Since the incorporation, so 20 June 2021.

My Tax free allowance for that year was 12570 £, for this reason i was paying myself 736£ according to what they have suggested.

There is no tax or NI due for 21/22. You need to establish, quickly, if the PAYE scheme is still open. A P45 does not close a scheme, it just shows an employee what they had earned to date when they left the employer.

I would suggest you have grounds for suing the old accountant, not just to recover the penalties HMRC have levied, but also your losses, as, had they properly filed your income you would have had NI credits towards your state pension.

 

[ryuma87]

There is no tax or NI due for 21/22. You need to establish, quickly, if the PAYE scheme is still open. A P45 does not close a scheme, it just shows an employee what they had earned to date when they left the employer.

I would suggest you have grounds for suing the old accountant, not just to recover the penalties HMRC have levied, but also your losses, as, had they properly filed your income you would have had NI credits towards your state pension.

Thank you,

So basically there is not any way to know roughly how much I owe based on these figures, except calling HMRC.

 

[Newchodge]

Thank you,

So basically there is not any way to know roughly how much I owe based on these figures, except calling HMRC.

You owe nothing. HMRC will have fined you for non compliance. You have already paid one fine. You need to find out if there are any more. BUT before that you need to stop the fines accruing by closing the PAYE scheme.

 

[ryuma87]

You owe nothing. HMRC will have fined you for non compliance. You have already paid one fine. You need to find out if there are any more. BUT before that you need to stop the fines accruing by closing the PAYE scheme.

Thank you for your help Cyndy, this is a very good relief, i have already appointend my accountant to figure out this issue.

 

[Daybooks]

Thank you,

So basically there is not any way to know roughly how much I owe based on these figures, except calling HMRC.

You can use the following to work out any amounts of employee and employer national insurances and any income tax due.

Rates and thresholds for employers 2021 to 2022

Use these rates and thresholds when you operate your payroll or provide expenses and benefits to your employees.

www.gov.uk

The rate quoted looks to be at the rate to avoid the taxes so if (from earlier posts) you have a liability then the payroll may not have been posted correctly. As others have suggested get or create your Gateway account where you can find out what has been submitted.