When employing someone for the first time, you must register as an employer. This is to inform HMRC that your employee has started working for you.
You will now have a responsibility to calculate the tax and National Insurance contributions (NIC) of your employee, and then withhold this from their pay and submit this to HMRC on their behalf.
Furthermore, you will now be responsible to pay an additional employer's NIC.
Tax and National insurance are usually calculated monthly and payments are made to HMRC by the 19th of the following month, or the 22nd if paying electronically.
Why is it Important?
It is important to make sure figures are calculated correctly, so that you make the correct payments.
By not calculating the tax and NIC correctly, you may pay more than you have to. If you pay HMRC less than you should, you must return the withheld amount with interest and other penalties.
Letting us handle your payroll can save you valuable time.
We are able to provide good value support for small business payroll production.
Our accounts team will calculate employees' tax and National Insurance contributions and adjust these for sickness, paternity or maternity leave. We will send the final payroll calculations for your approval and then provide you with payslips to pass on to your staff or electronic versions which can be emailed directly to your employees.
As part of our payroll services, we'll also calculate your employer's National Insurance contribution and prepare your monthly PAYE returns as well as producing P45 forms for employees when they leave. At the end of the year we will also produce P60 forms for each employee showing all taxable income for the year.
We'll also help you navigate the tricky topic of employees' expenses and help you make sure these are treated correctly and taxed as efficiently as possible.
If this sounds of interest, send us an enquiry.