London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Extending the scope of PAYE

Following the recent press coverage on senior government personnel operating through personal companies and HMRC’s failures on obtaining the right to PAYE in the courts, the government is consulting on how it can better collect PAYE.


The consultation proposes to place the onus firmly on the paying company by imposing an obligation to deduct PAYE on payments for “controlling persons” irrespective of to whom the monies are paid.


A controlling person is defined as:


“someone who is able to shape the direction of the organisation having authority or responsibility for directing or controlling the major activities of the engaging organisation during the year.  This would be someone who has managerial control over a significant proportion of the organisation’s employees and/or control over a significant proportion of the budget of the organisation.”


This is likely to have a significant impact as the definition is widely drafted and likely to catch most senior people.  It is also likely that the paying company will err on the side of caution as the proposals will put the risk – PAYE, NIC, interest and penalties – firmly with them.

 

 

Date: 15th June, 2012
Author: Cathy Corns

SHARE THIS

Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

“Good luck to everyone who has also made it as a finalist, I look forward to awards evening later on in the year”-L… twitter.com/i/web/status/8…

Michael Lapham shortlisted in the Money Management Financial Planner Awards 2017 bit.ly/2fL8VXBtwitter.com/i/web/status/8…

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn