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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4200
Experience:  FCCA FCMA CGMA ACIS
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i employ a youngster on £6 an hour for 15 weeks a week..£90

Customer Question

i employ a youngster on £6 an hour for 15 weeks a week..£90 a week ..i was originally adviced i didnt have to go through hmrc as he is well below the threshold..i have employed him for 3 years
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

You have been misinformed. You must report payments made to your employee however small, even if below the Lower Income Level for National Insurance. This must be done through Real Time Payment RTI. That is HMRC guidance on the matter. On the other hand HMRC also advise that where permanent employees do not present a P45 on joining and are paid below the Lower Earnings Level of 107 quid a week you do not have to maintain a P11, Deductions Working Sheet.

To be on the safe side I would advise you to register as an employer immediately. HMRC may be lenient if no loss of revenue is involved. Alternatively write to your tax office for guidance or drop into an Inland Revenue for advice. They are often surprisingly helpful. Whether Scots, English and Walsh or Northern Ireland Law is in force is irrelevant, the tax law is common throughout the UK.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Expert:  bigduckontax replied 3 years ago.
Many thanks for the bonus too.