Start date/Appointment date

BWMEA · ‎October 19, 2020

I am using Payroll Advanced for a limited company and in the process of setting up payroll so two directors can pay themselves a salary starting this month. I have a couple of questions;

1. Under employee details I assumed the 'Start date' will be when they begin employment which would be the beginning of October 2020. Under the tax/NI section I assumed the 'Appointment date' would be when they first became a director. However, when attempting to input an appointment date earlier than the start date this was not possible. If I was to change the start date to when they were appointed as a director would HMRC not be expecting an FPS filing for every month from that date?

2. When inputting a P45 for one of the directors who was employed when the company was dormant, I am unable to put a leaving date later than the start date I have inputted for this new employment. Therefore again in relation to the above, I am unable to put the start date as the appointment date. Is it essential to use the previous P45 tax code?

3. The directors are hoping to pay themselves £8788 as a tax/NI free salary. Will QuickBooks issue 'Annual salary/12' each month, meaning the directors will not reach their full allowance by April 5th 2021? Am I able to 'increase' the Annual Salary so they are paid a higher amount until the end of the tax year and then change to a lower salary for the new tax year?

Any help would be greatly appreciated.

Jovychris_A · ‎October 19, 2020

Thanks for your prompt response, @BWMEA.

Let me share some details on how you can add the start date for both directors (previous/latest).

When you add an employee to payroll, you'll want to specify if they are a director along with their appointed start date. I'd suggest reaching it to HMRC to confirm what calculation both directors are on. Then we can input the start date once it's verified. If you need a live expert to assist you on call or chat, you can connect to them here.

For the P45, you can leave its box blank. Make sure to enter the total pay to date for the tax to be calculated correctly on the payroll.

For the third question, yes, you're correct with your insights. I'd suggest reaching it to HMRC on how you can manage the calculations for the current tax year and the new tax year.

Also, I'd encourage you to reference this article for an overview of how to designate an appointed started date to a director: Directors National Insurance. It covers FAQs like how HMRC what happens if the director ceases directorship midyear.

Additionally, you can refer to this article for more details in getting started with Advanced Payroll and managing employees: QuickBooks Online Advanced Payroll Hub. It includes other links like processing pay runs and guide to expenses & timesheets.

Please let us know if you have additional questions. The Community is always here to help. More power to your business!

View solution in original post

Ashleigh1 · ‎October 19, 2020

Hello BWMEA,

Welcome to the Community page,

Have they been reported as directors before to HMRC?

BWMEA · ‎October 19, 2020

Yes the owner of the company set up as a director from the start and then the second was appointed earlier this year.

Jovychris_A · ‎October 19, 2020

Thanks for your prompt response, @BWMEA.

Let me share some details on how you can add the start date for both directors (previous/latest).

When you add an employee to payroll, you'll want to specify if they are a director along with their appointed start date. I'd suggest reaching it to HMRC to confirm what calculation both directors are on. Then we can input the start date once it's verified. If you need a live expert to assist you on call or chat, you can connect to them here.

For the P45, you can leave its box blank. Make sure to enter the total pay to date for the tax to be calculated correctly on the payroll.

For the third question, yes, you're correct with your insights. I'd suggest reaching it to HMRC on how you can manage the calculations for the current tax year and the new tax year.

Also, I'd encourage you to reference this article for an overview of how to designate an appointed started date to a director: Directors National Insurance. It covers FAQs like how HMRC what happens if the director ceases directorship midyear.

Additionally, you can refer to this article for more details in getting started with Advanced Payroll and managing employees: QuickBooks Online Advanced Payroll Hub. It includes other links like processing pay runs and guide to expenses & timesheets.

Please let us know if you have additional questions. The Community is always here to help. More power to your business!

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