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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Do we need PAYE and RTI?

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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?


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

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:

and dispensations here:

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

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