PAYROLL & PAYE SERVICES
PAYROLL AND PAYE FOR EMPLOYERS
If you run a business and employ staff, you will normally have to run payroll to pay your employees. When paying your employees through payroll you also need to make appropriate PAYE deductions. PAYE is HMRC’s system to collect Income Tax and National Insurance from employment. Other deductions you may need to make include student loans or pension contributions.
SETTING UP YOUR PAYROLL
To operate payroll for your business you will need to complete certain tasks to be able to pay your employees for the first time. You must:
- Register as an employer with HMRC and get a login for PAYE Online,
- Choose a payroll software to record employee’s details, calculate pay and deductions, and report to HMRC under RTI,
- Pay HMRC the tax and National Insurance you have deducted and owe,
- Collect and keep records,
- You’ll need to complete certain annual reports and tasks to prepare for the next tax year, which starts on 6th April
Here at Harvest Accountants we can help you with the registration process with HMRC and recommend payroll software that is tested and recognised by HMRC. Having the right payroll software will ensure your company files the required reports to HMRC on time and keeps accurate records. Please feel free to contact us if you need any assistance with setting up and operating your payroll. If you would prefer to outsource your payroll rather than handle it in-house then our team can do this for you.
REPORTING TO HMRC
When you run a payroll and make PAYE deductions, you will need to report any employees’ payments and deductions to HMRC on or before each payday using Real Time Information (RTI).
Other things to report
As part of your regular reports via RTI, you should tell HMRC when a new employee joins, when a current employee leaves, and if an employee’s circumstances change, for example, they reach State Pension age or become a director.
PAYMENT TO HMRC
Payroll software will work out how much tax and National Insurance you owe, including any employer’s National Insurance contributions for each employee.
You will be able to view what you owe HMRC, based on your RTI reports sent to HMRC. You then have to pay them, usually every month. If you’re a small employer that expects to pay less than £1,500 a month, you can arrange to pay quarterly.
If you are a CIS Contractor you will also need to make payments to HMRC monthly under PAYE, see our Construction Industry Scheme page for more information.
When running a payroll and operating PAYE, you must collect and keep records of:
What you pay your employees and the deductions you make
- Reports and payments you make to HMRC
- Employee leave and sickness absences
- Tax code notices
- Taxable expenses or benefits
- Payroll Giving Scheme documents, including the agency contract and employee authorisation forms
- Your records must show you’ve reported accurately, and you need to keep them for 3 years from the end of the tax year they relate to
NEED HELP WITH PAYROLL AND PAYE?
Our in-house payroll team can assist your business with their payroll and PAYE needs. We use HMRC tested and recognised payroll software for all our clients ensuring they are compliant with HMRC regulations for both reporting and record keeping.
Our payroll team deals with all payroll matters including:
- P45 for leavers
- Statutory Sick Pay (SSP) / Statutory Maternity Pay (SMP)
- Submission of your RTI return to HMRC
- Year-End Returns
- Pension Autoenrollment
- Construction Industry Scheme (CIS)
If you need any assistance with payroll and PAYE please contact us so we can discuss your needs and advise on a payroll solution that is best for your business. Our consultations are free, so please get in touch.