Post
by nijaraj » Sat Feb 20, 2021 2:00 am
sorry forgotten to add can edit the post
if director has agreement to get commession from some of his previous work as company progress, this has to be on payroll, if we issue P45 then we can't record his earning which is against the law.
i found something regarding same issue.
"I'm somewhat sceptical about this, but I was given a clear, firm answer once when I called HMRC's PAYE helpline with this very question which arose when a client asked us what they should do. According to the answer I was given a director-employee should not be made a leaver while they retain their directorship, even if they cease paid work for the organisation. In particular HMRC is concerned about the possibility that the director might restart with the same company later in the year, messing up cumulative NI rules (which of course someone unscrupulous could do deliberately), and they prevent this by not allowing the "leave" in the first place."