I have a client who's employed a lad for one day and paid them £50.00 cash. They were under the impression that if it was a 'one-off' payment and under a certain amount then there is not liability to report this though PAYE, however that's not my understanding.
I have explained that, as this employee has another job elsewhere and is not self-employed, then we should have reported this with the other payroll and deducted tax with BR tax code; however, I do vaguely remember there being some exception if it was a very short contract, but can't find anything and wounder if I'm making this up or if this was removed with RTI?
You may well have seen previous posts about the harvest crews and crop pickers type businesses where 7 days grace is granted. Also some pubs where they pay staff at the end of their shift (wonder if many do that these days?!!) . I'm guessing though that this business might not come under those sectors? If he isn't a regular offender and you use a carefully chosen why it's late code on the RTI he might get away with the fine (although having to pay one might teach him a lesson)
-- Edited by Cheshire on Saturday 9th of September 2017 07:56:42 AM
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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
Maybe one day the client will ask the question first rather than giving me the problem to sort after they have done it wrong !!! or is that asking too much
