If you are employing people you will need to run a payroll in order to pay them. This involves you calculating net pay, income tax and National Insurance contributions (for each employee and you as an employer). You will also need to calculate pension contributions, report to HMRC (under RTI) and make payments for PAYE to HMRC every month. All this can be time consuming and daunting. It also takes you away from the main focus of your business. This is why outsourcing your payroll can be more cost-effective.
As an HMRC registered agent for PAYE with 25 years payroll experience Moore Financial Management can provide a tailored payroll service to meet your individual needs including:
- Calculation of pay, national insurance and income tax
- Submission of monthly RTI reports to HMRC
- Calculation and submission of PAYE liability
- Preparation and submission of P60s, P45s and P11D
If you are thinking of employing staff you need to be aware that you will have certain obligations as an employer.
Register as an employer
If you are employing staff you normally need to register as an employer with HM Revenue and Customs (HMRC). You also need to register if you start using CIS subcontractors for construction work.
You have to register even if you only employ yourself. That could be as the only director of a limited company.
You must register before you run your first payroll and it normally takes up to 5 days to get your employer PAYE reference number. We can help you with this.
Payroll and PAYE
Paying your employees
You will need to calculate and pay your employees their salary or wages. This is usually done weekly or monthly. We can help you with these responsibilities as an employer:
- collecting and keeping records of your employee’s details
- providing your employees with regular payslips
- Making deductions from their pay under PAYE, and;
- Making payments to HM Revenue and Customs (HMRC).
As an employer, you normally have to operate PAYE as part of your payroll. This is how HMRC collects Income Tax and National Insurance from employment. We can help you by calculating and deducting:
- National Insurance
- student loan repayments
- pension contributions.
Reporting to and paying HMRC
Reporting pay and deductions
If you run a payroll, you will need to report your employees’ pay and deductions to HMRC on or before each payday. Since the introduction by HMRC of Real Time Information (RTI) all employers have been required to report in real time.
As part of your regular reporting you should tell HMRC when a new employee joins or if someone leaves. You must also report changes in an employee’s circumstances. These can include if they reach State Pension age or become a director.
You also have to run annual reports at the end of the tax year – including telling HMRC about any expenses or benefits. We can help you with this by:
- Ensuring all of this information is captured correctly, and;
- Sending HMRC a Full Payment Submission (FPS) each payday
You usually have to pay HMRC every month. If you’re a small employer that expects to pay less than £1,500 a month, you can arrange to pay quarterly. We can help you by:
- Calculating how much PAYE needs to be paid, and;
- Setting up the necessary payment to HMRC