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20 August 2013
Issue: 4416 / Categories: Forum & Feedback , RTI , Employees , Income Tax

The real-time information system that has been introduced to make operation of the PAYE system more straightforward seems to be causing many headaches for employers and their advisers

My client is a one-man limited company where the “one man” is about to take up nearly full-time employment elsewhere. This will allow the director to continue to take on the occasional outside project and these will still be run through the company so the business will not become dormant.

There will though be little point in the company paying any salary from the company to the director/shareholder for the foreseeable future.

In the short term it therefore seems to be a good idea to cancel the limited company’s PAYE scheme. This will avoid the requirement to send a nil EPS (employer payment summary) and an FPS (full payment submission) to HMRC each month. The company has not paid any salary yet in 2013/14 but it has – so far – kept up with its real time information (RTI) obligations.

However the director has...

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