Latest client has two companies one of which now has no employees but they wish to keep PAYE scheme going (for whatever reason).
They are currently getting demands (into thousands of pounds based on assessments) as they have not been sending in any EPS to say there was no payments that month. I've no idea why the previous bookkeeper didn't do this as it would seem a simple enough thing to do as they would already have it set up from when company did have employees.
Is it possible to set up a scheme on Sage 50 Payroll (or even Basic Tools to save using up one of the allowed companies in Sage) or will it refuse to do so as there are no employees added. I know there is one form sent before you can start in Sage, not sure if it is demanding employees as any time before I've had employees added.
I don't want to waste time setting up a scheme and filling in all the details only for it not to send because there are no employees.
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Never buy black socks from a normal shop. They shaft you every time.
What system does the company already use for PAYE? If they already have one in place, can't they just carry on with that?. Otherwise y not use something like my PAYE for both, or just set up using basic tools. I don't know about SAGE 50 but I would think it would be expensive.
It was the previous bookkeeper's own software being used. They have moved out the area. I have my own multi-company Sage 50 Payroll program but wasn't wanting to use up one of the licences on just this. If it can be done I might just do it with Sage 50 Payroll so all the companies I have are in the same program. Or HMRC Basic tools if Sage won't allow it. It is just the time I am talking about. I don't want to waste time setting it up on either only to find I need employees.
(I realise it sounds daft - setting up a payroll program with no employees).
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Never buy black socks from a normal shop. They shaft you every time.
I'm not really sure about the answer to this, but just out of interest why would they want to run a PAYE scheme if they have no employees? Is this even possible? I would have assumed you'd have to notify HMRC that you were no longer employing anyone.
I've no idea. Maybe they'll employ people at a later date and don't want to start a new scheme. As I said before they did employ people in the past but no longer do so - it should just bve a case of sending an EPS each month to say there were no payments made. Pointless I know. Just trying to find out if possible. If not they'll need to close current scheme down.
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Never buy black socks from a normal shop. They shaft you every time.
Best of luck with your new client. I think you need to clarify all the information with the client. I would make sure that I am registered as an agent for the client with HMRC (so that I can talk to them on the clients behalf), If no payments were made then I would sent in a previous years EPS, Make sure that the outstanding debt is cleared from HMRC and the client has written confirmation of this and then continue with this years nil payment EPS unless it has been decided to close it. Even HMRC will give you different answers as to whether it should be left open or not, but if you use such and My PAYE then as long as you have another company who you are paying for, (say if you did the payroll for their other company through them), then they would not charge for a nil EPC and even if they did, its not a lot). You probably can do it via basic tools as well, but if you get all the facts talk to HMRC you should get a clearer picture and you may even find the client gets a refund.
Best of luck with your new client. I think you need to clarify all the information with the client. I would make sure that I am registered as an agent for the client with HMRC (so that I can talk to them on the clients behalf), If no payments were made then I would sent in a previous years EPS, Make sure that the outstanding debt is cleared from HMRC and the client has written confirmation of this and then continue with this years nil payment EPS unless it has been decided to close it. Even HMRC will give you different answers as to whether it should be left open or not, but if you use such and My PAYE then as long as you have another company who you are paying for, (say if you did the payroll for their other company through them), then they would not charge for a nil EPC and even if they did, its not a lot). You probably can do it via basic tools as well, but if you get all the facts talk to HMRC you should get a clearer picture and you may even find the client gets a refund. Its not that difficult to sort, its just time consuming has if you ring HMRC you are noted for being on the phone for quite a while.
This is a situation I have ongoing with a client as well and they have been receiving calls from HMRC stating that they have not been receiving the correct filings (I have been sending an EPS through Sage 50)
HMRC advised that I use Basic PAYE Tools and send a return which is titled 'Periods with no payments to employees'
Following a further call to them this has seemed to satisfy them, well at least for 1 day
