Limited company started in Feb'12 - no salary in 11/12 tax year

[mbarai]

Hi,

I set up a limited company (as the sole director) at the beginning of Feb'12, having moved from full-time employment.

I registered as an employer and recently submitted my P45 part 3 using Basic PAYE Tools, once I received my PAYE reference and activated the PAYE service on HMRC Online Services.

I have, however, decided to not pay myself a salary in the current tax year (Feb & Mar), my main reason being that my current tax year earnings from my past employment (and other sources) have already exceed the personal allowance as well as the 40% threshold.

The Basic PAYE Tools stated that I do not need to maintain any P11 records if I'm not paying myself a salary in the current tax year, and hence I was unable to submit a nil P35 / P14 return using this application, or even to generate a P60 for myself.

I'm aware that I need to make a nil P35 declaration using the appropriate link on the HMRC web-site, but just wanted to understand how I can generate a P60 for myself, and what final tax code to expect on it (i.e. would it be the same as that on my P45 from my prior employment)?

Also a bit confused about P11D and P11D(b) - I've just applied for dispensation on the kind of expenses I have paid for using my personal credit card and then reimbursed myself from the business. The nature of reimbursed expenses are purely business travel & subsistence, client entertainment costs, and purchase of IT assets for the business (laptop & software). If I am granted a dispensation, does that mean I don't have to worry about both P11D and P11D(b), and can select the option "No P11D(b) due" when I submit a nil P35 declaration?

I've searched quite hard but can't seem to get to consistent answers on the above, so any help will be most appreciated.

Many thanks in advance!

 

[Tom McClelland]

re the P60

P60s are only required for employees where a P14 was filed, and no leavers P45 has been issued.

P14s are only required for employees with a P11.

A P11 only starts to be prepared when an employee earns above the LEL in a pay period (unless they also have another job elsewhere).

So in the situation you describe I think no P14 is required for an employee with zero earnings in current employment, therefore also no P60 can be supplied.

But it is a slightly unusual case, that I've not come across before, so I could be wrong.

 

[mbarai]

Thanks - I was able to use Basic PAYE Tools to create a P60 for myself, specifying £0.00 for current employment (using the 'fill form' option).

For the final tax code, I just used the tax code from my prior employment P45 - this is a bit lower than the default tax code for the year, presumably because of the cost of my medical insurances from my previous employment, which formed part of my benefits. Not sure if this is correct, but then again, not sure if it matters given that my personal tax return will "fix" any over or under payments anyway.

There is also an option to fill in the P11d, and based on the nature of my expenses, I'll only have to fill in section N - that too only if I'm denied a dispensation.