register for paye when receiving pension

[mbsc]

Hi there,could you advise on the follwong scenario ,
Does a director need to register his limited company for paye scheme if he receives a pension as income plus salary taken out of his ltd company (age 65),what are the rules in this scenario?
thank you

 

[elaine@cheapaccounting]

Assuming salary is above LEL then yes

Although why he would pay a salary if he was using his personal allowance against his pension I don't know but assume he would discuss it with his accountant.

 

[RAL]

Yes, you have to maintain P11 as he has got two jobs, and need to deduct the tax if personal allowance allocated to the pension. In this case the PA would be allocated to pension, as HMRC would not know about this limited company job.

 

[mbsc]

[FONT='Verdana','sans-serif']Hi Elaine,[/FONT]
[FONT='Verdana','sans-serif']Thank you for your advice, looking at the allowances in 2011/12 the person has got PA 9940 (because it will turn 65) however if he is a director for a limited company and his pension is 6500 then there are allowances of 3440 not used if the drawings are accounted as dividends . On the other hand PAYE scheme is to complicated to be set up just for small amount of salary, what is your opinion ?[/FONT]

 

[elaine@cheapaccounting]

I can't read that with the mark up in