I am a Sole Trader and want to employ my partner. I don’t employ any other staff.
This will be their only employment and will be under the Lower earnings limit.
I have found out that I do not need to register as an employer through HMRC and will have no need for PAYE or Payroll software.
Do I still need to inform HMRC about this?
Also, how would I tag the wage in QuickFile?
If there’s no requirement to operate paye there’s no requirement to inform hmrc.
You can tag it as salary.
So on the tagging, am I correct saying I follow instructions for “Without a payroll journal” ?
If you’re using QuickFile without payroll journals then you need to first ensure that the ‘Post Net Wages to Balance Sheet only’ option is turned Off . This can be found in Account Settings >> Advanced Features :
When you tag a payment in your bank account as a salary, QuickFile will do two things for you.
- It will tag this payment to
2220 Net Wages
- A second posting is made to move it from
7003 Net Staff Salaries Paid
I think it’s the “net staff wages” that is confusing me.
Yes that’s correct
Net staff salaries paid is basically wages less tax and ni.
Since your paying below the lel there won’t be any so that’s fine.
Bare in mind tho that without a paye scheme she won’t receive credits towards her state pension.
Perfect, many thanks.
I appreciate you taking the time and trouble to answer my questions.
All the best
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