Backdate PAYE & Director appointment

[Booklynn]

A Ltd Co has PAYE scheme & sole director on wages.
Is it possible to backdate the appointment of 2nd Director & to backdate adding them to payroll to utilise pa for 2009/10.
Possible new client whose old accountant did not utilise the possible 2nd director.
Lynn

[mullet]

Is it possible to backdate the appointment of 2nd Director & to backdate adding them to payroll to utilise pa for 2009/10.

I don't know too much about company law, so I can't give a "definite" comment on the retrospective appointment of a director. But I suspect that without a Board Meeting and contemporaneuous minutes you may be on dodgy ground.

PAYE has to be accounted for at the "earliest date", being date of payment, date of entitlement or date that money was made available (for instance in a director's loan account). If none of those dates was within 2009-10 then no PAYE would be due. I know that the situation is a little different in that you are proposing to make a payment at or just below the threshold, but surely a broadly similar principle applies?

I cannot see that you can do something now, deeming it to have happened a month or a year ago to gain an advantage. Income cannot generally be moved backwards or forwards at will.

[GARDNER4]

Hi

In simple answer to your question "yes" to both.
Firstly inform the company house on the appropriate form when the person was elected a director.
Secondly regarding his pay, chk with your payroll section or your accountant. Depending how much is stated as being paid...you will have to notify HMRC depending on the amount.

[wamstax]

Using 2nd director could be a precarious line to follow as the term used suggests that there is an automatic entitlement to reduce the tax bill of the 1st Director by engaging a 2nd director. If 2nd director does not IN FACT carry out any duties or services then the amount payable/paid to the 2nd Director would not be allowable for tax purposes in arriving at the company's tax bill.

Did the 2nd Director carry out any meaningful duties in 2009-10 ? A negative reply suggests that you are on ropey ground if an enquiry ensues and the facts become clear.

[Booklynn]

Yes the 2nd director did perform duties, which was why both the Client & myself were annoyed they were not included in payroll & made a director.

[wamstax]

Ok correct the predecessors mistake(s).