UK businesses making payment to employees must consider the tax compliance requirements of HM Revenue & Customs (HMRC). Administering your payroll can be time consuming and burdensome, diverting energy and resources from the core activities of your business. The HM Revenue and Customs requires such businesses to operate the Pay As You Earn (PAYE) system. Businesses with employees need to understand the requirements of registering for and operating PAYE, including the timely payment of taxes and submission of various forms to HMRC. And the task is made all the more difficult by the growing complexity of taxation and employment legislation and the accompanying regime of penalties for non-compliance.
PAYE has a great repercussion for both employers and employees, so here you will find some of the pitfalls to avoid which we have covered in this page.
Employers: You have obligations to the Inland Revenue if you employ staff. Ignoring these obligations means penalties and interest will shortly be affixed to your employment costs. Majority of penalties arise if you miss a specific statutory deadline for submitting tax and national insurance you have subtracted from your employees, or submitting returns late to the Inland Revenue. Making a late payment or forgetting to send off a specific return may result in you being penalised.
Employee Benefits : Providing employees with benefits, such as company cars and health insurance; be sure to watch out for the following: Identification is difficult - therefore unrelated expense can be classified as a benefit, for example excessive staff entertaining. Benefits have their own national insurance payment which has to be paid by employers in July each year. Benefits have to be announced to the Revenue on particular returns which must be sent on time to avoid penalties.
Administering your payroll can be time consuming and burdensome, diverting energy and resources from the core activities of your business. We relieve this burden from you with our outsourced payroll service. Fides Partners Limited has dedicated and experienced staffs that are fully up to date with the ever changing legislation and employer obligations. All you need to do is advise us of your employee hours, any overtime, commissions, bonus, holiday and other variable details and we do the rest. Our comprehensive and confidential payroll service includes:
- Informing Inland Revenue about new employees.
- Providing you with monthly payslips.
- Reminding you about your PAYE liability before the due date. This must be paid by the 20th of each the month for the previous pay month. For example your January payroll liability must be paid by the 20th of February.
- Administration of PAYE, national insurance, statutory sick pay, statutory maternity pay, etc .
- Completion of statutory forms, including yearend returns, to issue to your employees and submit to the Inland Revenue.
Choose one of the following packages that will best serve you:
