The Simplified Deduction Scheme.....I don't think I'll be able to do this.....

[foxinsocks]

well, they sent me the pack - I've worked out all the tax anyway (just to check how much I'll have to pay) but I think our nanny's pay will be more than the threshold...

well I think it will be because I called them up and they didn't seem to know and then quoted an amount of £160 per week taxable to be applicable for the Simplified Scheme (which we will easily exceed). Does this sound right? Can't be bothered to trawl the HMRC site to look!

Have already started paying her but as we only have to remit for the quarter ended 5 April, I've got a bit of time to sort it out.

Sounds right I'm afraid. The taxable pay (gross) must not exceed £160 per week / £700 per month - see Simplified PAYE Deduction Scheme Employer Pack

If you exceed that limit, then you must do the full PAYE. - see P49 Paying Someone For The First Time

Contact the New Employer Helpline 0845 60 70 143 and explain the situation to them... with luck you may get someone answering the phone who can help.

thanks Nick.

Spoke to them this morning and asked if I could do the normal P11 type payroll (because it means I can take into account the tax paid to date etc.) but they want me to use the Simplified format (with the P12) no matter what and only swap over after year end grrrrrr.

It's annoying because the tax is like on a month 1 week 1 code rather than being accumulative.

I had this problem when I increased my Nanny's hours from 2 days to 3 days a week. I've had to come off the Simplified Scheme onto the normal PAYE scheme.

You need to get the Employer CD, and you can then go and calculate and record the Pay, Tax and NI, and keep a record on your PC. You still make quarterly payments to HMRC (well I have anyway), and then I believe we have to submit an end of year return to make sure all the payments tally up.. I've only done it recently so still finding my way.

yes, you only have to quarterly remit until the PAYE hits a limit (from memory it's around £1500, normally set to catch employers with a proper sized payroll!).

I would rather be on the normal PAYE tbh because then I can do her tax properly rather than being told to deduct a standard amount and be stuck with it.

I know what the tax should be (am an accountant, so have worked it out anyway) but paying on the SImplified Scheme somewhat screws that up because they look at the pay on a week by week (or month by month) basis iyswim.

I meant quarterly remit rather than monthly

did they let you change even though you were mid year or did you do it at the end of the year?

They insisted I do it mid year. I'd have preferred to continue with the simplified scheme, but it comes up with this warning message and tells you can only pay over the limit once.

I'm still deducting the same amounts each month though - am I doing it wrong?!

Surr3ymummy - if you are using the employers CD-ROM, I expect you are doing it right. However, looking at my own payslips, my tax deducted amount varies some months... but only by pennies. Eg. The figure was the same number of whole pounds, but had the following pennies - Oct07 19p - Nov07 17p, Dec07 18p
As long as you are going though the steps to calculate it each month (and it just happens to come through exactly the same), not just writing down the same figures as last month - all should be fine.

Interesting that HMRC have told one person to switch scheme mid-year, but another is being told to wait till end of year.
Sounds a bit like the issue childminders get with Ofsted's helpline