Do I need PAYE?

When paying your employees, you need to decide how much they will receive in the form of salary and wages, and how much will be deducted in taxes.

You need to report this to HMRC before they get paid.

The UK Government collects personal income taxes from anyone employed or self employed.

PAYE or Pay As You Earn is the system used to control this and was started 70 years ago.

If your employees income is above £112 per week you must use PAYE by law.

Through this system your employees payslips will show deductions of:

  • Income tax
  • National Insurance contributions (NIC)

You will also need to keep a record of all payroll activities or you could face a fine of up to £3000.

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Can I do it myself?

Absolutely, if you have the patience and are willing to learn about PAYE and RTI.

PAYE must be completed correctly or you could find yourself on the end of a fine from HMRC.

You will need to:

  • Calculate Tax, NIC and Salaries on Payroll Software
  • Submit RTI information to HMRC when your employees get paid
  • Ensure the correct forms are filled in when an employee leaves
  • Set up new employees correctly
  • Report to HMRC if employee circumstances change

…or you could take the hard work away and let us do the heavy lifting!

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How does Real Time Information (RTI) work?

At the start of PAYE, the Government took into account that most people would be in one place of work for a very long time.

Nowadays, employees may have different jobs, may be part self employed, on maternity pay or work varying hours.

With RTI, HMRC wants to know information about your employees when it happens.

This means you need to report to HMRC every time the employee gets paid.

This is called Real Time Information.

HMRC wants to know:

  • What you paid your staff.
  • What deductions were made.
  • When a new employee has joined your business.

Can you help?

Absolutely, we have a payroll department!

Our payroll department currently deals with staff from 190 firms across the UK.

We can:

  • Calculate all payments due to your staff
  • Calculate all deductions
  • Submit to HMRC with RTI
  • Submit all relevant forms to HMRC such as staff leaving

Make your life easier by switching to Payroll with us.

We will ensure everything is completed on time and your staff are paid correctly.

I need help with payroll

Reduce your taxes with us…

“The Government is constantly changing tax regulations. Our team knows all about taxes and how we can save you paying HMRC needlessly.”

Asghar Chaudhry, Partner

Call 0113 2486019 today.

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