A few weeks ago I was contacted by HMRC about Failure to Operate PAYE on Directors remuneration. This came about because the amount recorded on the P14s (PAYE end of year summary) did not agree with the amount recorded under directors remuneration listed in the online CT tax return.
I identified the discrepancy as being pension payment made into my pension scheme by the company. After sending details of this plus the requested 5 years of PAYE records I was told that the remuneration shown on the P14s was correct but asked for further details to the pension payments.
These were made by the company via a cheque into a Scottish Widdows private pension scheme as set up by IFA and I forwarded all the details.
I have now received a letter stating that as these payments should have been recorded on my P11d and are subject to tax and class 1 national insurance. I believed that pension payment made by the company were a tax deductable expense and did not need to be recorded as a BIC.
The payments were paid gross and I had not claimed any pension tax relief on my SA.
Being a qualified (but non-practiising) Chartered Accountant a do all my own accounts, Payroll and correspondence with HRMC but I will be seeking professional advice on the above on Monday.
However I wondered if anyone else had received this type of demand or had paid tax/NIC on company payments or had sucessfully rebutted the request.
I identified the discrepancy as being pension payment made into my pension scheme by the company. After sending details of this plus the requested 5 years of PAYE records I was told that the remuneration shown on the P14s was correct but asked for further details to the pension payments.
These were made by the company via a cheque into a Scottish Widdows private pension scheme as set up by IFA and I forwarded all the details.
I have now received a letter stating that as these payments should have been recorded on my P11d and are subject to tax and class 1 national insurance. I believed that pension payment made by the company were a tax deductable expense and did not need to be recorded as a BIC.
The payments were paid gross and I had not claimed any pension tax relief on my SA.
Being a qualified (but non-practiising) Chartered Accountant a do all my own accounts, Payroll and correspondence with HRMC but I will be seeking professional advice on the above on Monday.
However I wondered if anyone else had received this type of demand or had paid tax/NIC on company payments or had sucessfully rebutted the request.
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