Request for PAYE/NIC - Never requested before?

[beergander]

Hello,

I hope someone can assist. I have a consultancy business that has run for the past 6 years. It's VAT registered, my income source is via Dividend payments only. Accounts are up to date and accurate.

The client i do work for 'Professional services' , (My only customer) is currently under an HMRC 'Enquiry' although this is quite specific in its nature.

Today I received a letter from HMRC saying that my PAYE/NIC payment is overdue? It's quite direct and ends saying about seizure of goods/bankruptcy.

Questions are, is this a likely consequence of my client having an enquiry?
Under what scenarios am I liable for PAYE/NIC? I work from my own premises, at times decided by me, and the work is random in its nature eg. Not a set amount of days in any period.

I will speak with my accountant on Monday but wondered if anyone out there can assist.

Thanks

[wamstax]

Hi there,
As you are seemingly running your business via a company (you mention dividends) then as a director you are also an office holder and there is an expectation that your post will be a remunerated one accordingly tax under PAYE would be due. Basically if you are not taking any salary (and I would question your accountants sanity if ALL your income is from dividends) then all you need to do is make a NIL monthly return to get rid of the threat. As you say see your accountant on Monday and get it ironed out

[beergander]

Bill,

Many thanks, I spoke with my accountant who's told me told report a nil return and confirm not employees for the foreseeable future. He also doesn't think this relates to the supplier enquiry. I'll await that one!