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Late PT NI PAYE submittion in 2017/2018 - question

Discussion in 'Accounts & Finance' started by M_M_M, Mar 6, 2018.

  1. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    Hi Guys,

    I was working for couple of years in Construction Industry as LTD. After I finished my last project in 07.2017, I decided to go for travelling for couple of months and close my LTD company at the end of this tax year (31.03.2018). The last payment my company received was obviously in 07.2017 but I am still paying myself a Salary and Divided (from my last year profit transferred over and from some profit for this short year so the value won`t be negative), so I am planning to have an empty account at the end of March and close the company. I have already prepared my accounts and everything for final tax payment so it`s not a problem, but I have got a little problem with PAYE.

    All previous years PAYE issues were always taken care of by my accountant and I had the accountant till 06.2017 (I signed him off after that as I knew that I am closing the company, so I don`t need him) and he uploaded first two payslips to HMRC (2x £680 for the beginning of the year) but since I went for travelling I totally forgot to continue uploading it myself during the year... I was paying myself every month £680 and my plan is to pay out a total salary of £8164, to reach the PT.

    I went through some information at HMRC web-page and I understand that such small salary, means that I can make the submittion every quarter instead of month? My question is, what can I do with that issue now, to avoid, or at least get small penalty? I have downloaded “Basic PAYE Tool” from HMRC web-side but I am thinking what option would be the best eventually. Can I just simply put that I paid the whole £8164 at the end of the year? There is no NI nor Income Tax due anyway.

    Thanks in advance for some advice.
     
    Posted: Mar 6, 2018 By: M_M_M Member since: Mar 6, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    13,233 2,862
    Posted: Mar 6, 2018 By: Scalloway Member since: Jun 6, 2010
    #2
  3. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    Thank you for the answer. So what should I do exactly? My accountant submitted £680 for April and £680 for May to HMRC. After that I was not submitting anything, but I kept paying salary £680 each month till now.

    1) Can I leave those 2 submissions done by my accountant and call HMRC telling them that I will make one submission to cover remaining 10 months now? So I would have 2x £680 and 1x £6804?

    2) Or should I call them, tell them that those 2 months are an error and I am paying 12 months now at the end of tax year (£8164) even when I was taking this £680 each month?

    3) Or maybe I should ask them for mercy and just ask if I can fill in the gap between June and now with those £680 payslips?

    As I said, company will be closed after this tax year is finished if it makes a difference.

    And sorry for being such a pain, I just want to finally close this company and don`t think about it anymore :)

    Thanks in advance
     
    Posted: Mar 6, 2018 By: M_M_M Member since: Mar 6, 2018
    #3
  4. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    I can`t edit, so sending a new post. One more question regarding one lump sum payment at the end of the year. I know it gives 0 NI tax but what about Income Tax on such one payment? I would prefer to avoid any tax refunds from HMRC after the end of March, as the company will be closed.
     
    Posted: Mar 6, 2018 By: M_M_M Member since: Mar 6, 2018
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

    13,233 2,862
    Posted: Mar 6, 2018 By: Scalloway Member since: Jun 6, 2010
    #5
  6. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    Thanks for the answer. I have spoken with HMRC, I can take the lump sum, no problem but they told me that there is no way around avoiding income tax on it... She said that they cannot sort it out with new tax code and I will just have to get the refund.

    So how much tax it will be on such sum in the last month? It looks like that at the moment:

    April 2017 - £680
    May 2017 - £680
    March 2018 - £6804

    I understand the tax when it would be paid in the first month of the year, then it assumes that such salary will be all the way. But how does it look like when it is the last month? How should I work the income tax on it?
     
    Posted: Mar 7, 2018 By: M_M_M Member since: Mar 6, 2018
    #6
  7. SteLacca

    SteLacca UKBF Enthusiast Free Member

    804 157
    if your tax code is 816L or higher and operated on a cumulative basis then you will have no tax to pay.
     
    Posted: Mar 7, 2018 By: SteLacca Member since: Jun 16, 2016
    #7
  8. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    Thanks for you help Guys!

    I have been "fighting" with Basic PAYE Tool now. I created an employee (me) and put that I already paid myself after 6.04.2017 - £1360.

    Now I have created another payment for £6804 and for some reason it shows me some NI to pay. Gross Earnings YTD seems to be fine, it took earlier 1360 + 6804 but why 681 falls above PT then?

    NIletter A
    GrossEarningsForNICsInPd 6804.00
    GrossEarningsForNICsYTD 8164.00
    AtLELYTD 5767.00
    LELtoPTYTD 1716.00
    PTtoUELYTD 681.00
    TotalEmpNICInPd 93.98
    TotalEmpNICYTD 93.98
    EmpeeContribnsInPd 81.72
    EmpeeContribnsYTD 81.72
     
    Posted: Mar 7, 2018 By: M_M_M Member since: Mar 6, 2018
    #8
  9. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    Ok, there was some glitch in this program and I had to remove that I already got paid this year, now it works fine.
     
    Posted: Mar 7, 2018 By: M_M_M Member since: Mar 6, 2018
    #9
  10. SteLacca

    SteLacca UKBF Enthusiast Free Member

    804 157
    It's not a glitch, and your RTI submission is potentially muddying the waters, now.

    The calculation assumes that the earlier payments (totalling £1,360) are due to be subject to standard NI in a single month, and so £680 is charged to NI. If your accountant has already reported these payments via RTI, and you are now reporting £8,164, you may have inadvertently made the total reported to HMRC £9,524.

    I don;t use BPT, so can't comment on the ease of ensuring that it's correct.
     
    Posted: Mar 7, 2018 By: SteLacca Member since: Jun 16, 2016
    #10
  11. M_M_M

    M_M_M UKBF Newcomer Free Member

    13 0
    I was speaking with BPT team and they told me to remove that "I have received earlier payment", add this payment manualy so the program knows that it is there, but to NOT SUBMIT it, add 6804 and submit ONLY this one.

    That way the program which is working offline only on my computer knows that overall income for the year is 8164 but submitted value to HMRC will be only 6804, and those 1360 are already in their system, so their system online will show 8164 - ufff if it makes any sense :)

    I have done it and it shows correct values now. Payment will go through as 6804 but the overall YTD payment is showing as 8164 with 0 NI and 0 Income Tax.
     
    Posted: Mar 7, 2018 By: M_M_M Member since: Mar 6, 2018
    #11