How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

Do we need PAYE and RTI?

Resolved Question:

1) Limited company with 3 Directors

2) No director draws a salary

3) Until now, no expenses have been paid out

4) Project has been funded using Ben's credit card (and his wife's) - he needs to expense it

5) Do we need to register for PAYE and RTI just to file a 100% business-use, cost of sales expense?

This is a one-time project; incurring around £19k in expenses all through funding on personal cards and overdrafts, with payments coming back in chunks and paying those sources down again.

It will last for only two months out of this year. There will be two sub-contractor payments to make (one is technically to a director, but will still be marked as a subcontractor).

It seems that we'd need to be submitting a P11D (£19k expenses being over the £8,500 threshold) at the end of the year for the expenses paid back, but does that necessitate the setup of otherwise unused PAYE and RTI?

Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

Look under the heading "When You Need T Register" at

http://www.hmrc.gov.uk/payerti/getting-started/register.htm

for the PAYE registration criteria. You should apply the same criteria used for employees to the directors. As you are not paying any salaries, there would appear to be no need to register yet and, consequently, no need for real time reporting.

At the end of the tax during which the expenses incurred on Ben's credit card are reimbursed to him or to any other employee or director for that matter, you will need to file a P11D and a P11D(b) but to that you will need to have a PAYE reference so,at some point, you will need to register for PAYE. Read about P11Ds here:

http://www.hmrc.gov.uk/payerti/exb/forms.htm

and dispensations here:

http://www.hmrc.gov.uk/payerti/exb/schemes/dispensation.htm

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you