Wages and not registered as employer

Discussion in 'Accounts & Finance' started by anonuk, Jan 18, 2018.

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  1. anonuk

    anonuk UKBF Regular Free Member

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    I have received a letter regarding my Working Tax Credits advising that they have 'no evidence' that I work for my ltd company. My wife and I are the sole directors. I declared an income of £500 per month for myself and zero income for my wife.

    We don't have any employment contracts as otherwise we would have to be paid minimum wage, and we've never registered as an employer as I only receive £113 per week (which is actually 'paid' into a directors loan account) and according to the HMRC website this has meant the company doesn't need to register as an employee.

    So, I'm wondering what I can supply to WTC as evidence of my employment (and my wifes). I've got a Sage Payroll subscription but it won't let me set it up without an Employer PAYE reference or Accounts Office reference and obviously without these I won't be able to produce a P60 or anything.

    Other than just creating payslips to tally up to what's been paid into the Directors Loan Account, is there anything else I can do (or should have done)?

    I'll also be submitting my self assessment tax return before the deadline they've given me so will send them that as well.
     
    Posted: Jan 18, 2018 By: anonuk Member since: Feb 27, 2014
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  2. Mr D

    Mr D UKBF Legend Free Member

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    Would a letter on your company letterhead (create one in word processor if you don't have one) help stating your employment status, salary and when you started work there? Then signed by you as director.
     
    Posted: Jan 18, 2018 By: Mr D Member since: Feb 12, 2017
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  3. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

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    Your tax return and tax calculation should be a good enough starting point.
     
    Posted: Jan 19, 2018 By: TheCyclingProgrammer Member since: Jul 15, 2014
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  4. Highland Spring

    Highland Spring UKBF Regular Full Member

    137 10
    Sounds like you are drawing a dividend monthly rather than paying yourself a salary. You'll get into trouble for paying a salary without a PAYE scheme in place, drawings from a Ltd company are not the same as Self Employed earnings, either its taxable under PAYE or a divi. If it is a dividend you can just create a dividend voucher on company letter head.
     
    Posted: Jan 20, 2018 By: Highland Spring Member since: Jan 20, 2018
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  5. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

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    That’s not what OP said. It is possible to pay yourself a salary without a PAYE scheme if you have no other job and are earning below the LEL and have no other employees earning over the LEL.
     
    Posted: Jan 20, 2018 By: TheCyclingProgrammer Member since: Jul 15, 2014
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