Undoing PAYE FPS submissions....

[MarkAnon]

Hi,

Ive been doing the Ltd company thing to contract now for a few months... I made an effort
to understand most things, VAT, FPS, Corp. Tax, PAYE, etc. ( and was told to treat HMRC like a rabid dog in a cage... but that's another thing!)

I began with a small 6 month contract and was paying myself from the company (as a director) each month, a small amount to keep below tax and NI thresholds.

However I was then offered a contract in Russia but it cant be done through my company.
So I would pay tax at source in Russia (13%)

However at the end of the UK tax year it would be better if I had not originally paid myself from the company, and instead paid it to my wife as a 2nd director, ( for tax purposes )...

So is it possible to 'Undo' the FPS submissions I made using the Govt Basic Paye Tools ( I would then put the money back in the business and pay my wife instead, and reduce my UK tax at the end of the year! )....

Cheers

[DotasScandal]

Maybe you could have also made an effort to identify which CUK subforum this is relevant to (hint: not this one).
It should normally be possible to reverse the submissions, but you might want to ask your accountant? (I assume you have an accountant).

[eek]

Your payments are recorded in real time so I very much doubt its reversible...

[Alan @ BroomeAffinity]

It's reversible. It's called I think "rolling back". However, I think in your circumstances you'd struggle to justify it: you meant to pay someone who wasn't on the payroll but in fact paid someone who was, but shouldn't have been. Does that sound plausible, really?

[Michael at BI Accountancy]

As Alan and others mention it is possible to reverse, you can in some instances update the year end figures in your next FPS.

However I'd agree with Alan, the reasoning to reverse these payments simply isn't going to stick with HMRC.

[Crossroads]

I don't have the first clue about the cross border tax implications here, but what is it you are trying to achieve?

If you were paying yourself say £1000/month, that is £6000. Surely the impact of paying 20%/40%/45% on this isn't so great? If it is then you could consider letting the tax tail wag the dog and look at a VCT or similar to offset the liability (with some risk, and a 5 year timeframe).

[Darren at Fox-Bartfield]

Payroll

Would agree with the guys above as regards the company RTI, maybe on a sticky wicket.

Be worth discussing with an in a bit more detail with regards to your full tax situation in case there's other options.

[MarkAnon]

Thanks

Thanks for the info ....
- Yes, I have accountant, but I'm in Russia right now. It was just that because I still need to be tax-resident in UK I will have to pay the residual difference between UK income tax and the 13% I pay as a 'HQS' in Russia. I am in Russia for 12 months and 6 months falls in one UK tax year, and 6 months in the next. Therefore if I could 'reverse' the salary payments I made from my Ltd during the first tax year I could bring my tax bill down, by increasing my wife's payments (split income ... as usual )...

If I have to explain it to HMRC and need a 'legitimate' reason, I guess that 'reducing my tax bill' may not be considered legitimate by them ? ... I just thought that there might be a straightforward, legal, way to reverse the payments.... ah well, next tax year I think I'll pay myself at the end of the tax year in one salary payment... that way I can fiddle (sorry, 'arrange' ) my figures in the most advantageous way... (retrospective knowledge is great! )

I think it's time I called my accountant....
Thanks for the help though!!

Cheers