One of my clients is taking on their first employee. She will earn under £112.00 a week so told him they didn't need a payroll setting up. They have now told me that sometimes she might do extra hours and so will earn over the threshold. How does this work please?
Do they need setting up as an employer from the get go?
She doesnt need to set up a PAYE scheme at that level but only is she has no other income from eg second job, pensions etc. But she would need to still keep the usual records.
If she is likely to go over that amount at all then they are best just setting up the scheme from the start, otherwise its usually a rush job and there is never enough time left and these days you have to report BEFORE you pay.
(Happy to quote if you dont do payroll - drop me a PM is you wish!)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You would need to start before they are paid the over the threshold wage, but would need to put in the history payroll info from the start of the current tax year. Hence why they have to keep the reocrds of what has been paid.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
