unpaid invoice payroll delayed -warning of penalty from HMRC

unpaid invoice payroll delayed -warning of penalty from HMRC

Author
Discussion

gmaz

Original Poster:

4,628 posts

217 months

Monday 13th May
quotequote all

I am a 1 person IT consultancy Ltd company waiting on payment of an invoice from early March. Until I get this invoice paid, I am unable to run payroll via Quickbooks, which does the FPS submission to HMRC.

So, can I run the payroll before I get the invoice payment into my business bank account? It should arrive in the next few days.

I got a warning message today from HMRC that the payroll is late and they will issue a penalty, if it is not done before the 19th

Eric Mc

122,855 posts

272 months

Monday 13th May
quotequote all
Why can't you run the payroll?

Why is it dependent on a customer paying your company?

Beetnik

527 posts

191 months

Monday 13th May
quotequote all
Which month's payroll is delayed?

If you're not making any payment to yourself from 6th of the month to 5th of the following month just complete a 'nil' EPS for the month in question rather than your usual FPS.

If you're just delaying payment during the month in question then just submit your FPS in the normal way but using the date when you actually made the payment - it doesn't have to be the same date every month.

gmaz

Original Poster:

4,628 posts

217 months

Monday 13th May
quotequote all
Eric Mc said:
Why can't you run the payroll?

Why is it dependent on a customer paying your company?
Basically there is not enough balance in my business account to cover my salary of £758. I contract to 1 company and invoice them on a month by month basis.

ConnectionError

1,946 posts

76 months

Monday 13th May
quotequote all
Can you not run payroll, and then pay your self when funds allow?

gmaz

Original Poster:

4,628 posts

217 months

Monday 13th May
quotequote all
ConnectionError said:
Can you not run payroll, and then pay your self when funds allow?
That's what I'm asking

22

2,396 posts

144 months

Monday 13th May
quotequote all
gmaz said:
ConnectionError said:
Can you not run payroll, and then pay your self when funds allow?
That's what I'm asking
I run my full wage through payroll, but don't take it all. A % goes on my director's loan account, to be paid back on a different date. You could probably do similar. HMRC get their share each filing.

Beetnik

527 posts

191 months

Monday 13th May
quotequote all
gmaz said:
That's what I'm asking
Yes, if you want to run it on the usual date then do so and credit your net salary to Director's Loan Account. Then draw it back when you have the funds.

Mr Pointy

11,838 posts

166 months

Monday 13th May
quotequote all
If only you had some other customers...

Eric Mc

122,855 posts

272 months

Monday 13th May
quotequote all
gmaz said:
Basically there is not enough balance in my business account to cover my salary of £758. I contract to 1 company and invoice them on a month by month basis.
Can you not run the payroll in the normal way and delay paying yourself until the cash comes in?

That's perfectly allowable.

PS - where's your accountant in all this?

gmaz

Original Poster:

4,628 posts

217 months

Tuesday 14th May
quotequote all
Mr Pointy said:
If only you had some other customers...
<Liam Neeson voice> I have a very specific set of skills

MyM2006

240 posts

151 months

Tuesday 14th May
quotequote all
We just run payroll and submit the FPS when requested otherwise HMRC get a bit arsey.

We generate the payroll payment file to import into our banking software but just delay actually importing it until there are funds to cover it in there, usually when we dont want to take out of a higher interest account just because incomming is a bit late.Never had an issue.

trickywoo

12,305 posts

237 months

Tuesday 14th May
quotequote all
gmaz said:
Basically there is not enough balance in my business account to cover my salary of £758. I contract to 1 company and invoice them on a month by month basis.
You should think about paying yourself 1047.50 a month now as you’ll save about £200 a year despite having to pay about £400 in employer NI.

Giantt

607 posts

43 months

Wednesday 15th May
quotequote all
gmaz said:
Mr Pointy said:
If only you had some other customers...
<Liam Neeson voice> I have a very specific set of skills
But not £785 in the bank?Not much of a business to be ltd?

gmaz

Original Poster:

4,628 posts

217 months

Wednesday 15th May
quotequote all
Giantt said:
But not £785 in the bank?Not much of a business to be ltd?
I'm semi-retired, just providing ad-hoc support for a legacy application until it eventually gets replaced.

trickywoo said:
You should think about paying yourself 1047.50 a month now as you’ll save about £200 a year despite having to pay about £400 in employer NI.
See above, sometimes my monthly invoices are less than £1K a month.