- If you have employees, or you are a Director of a Limited Company and you want to pay yourself a salary, you will need to run a RTI (real-time information) compliant payroll scheme, usually Pay As You Earn (PAYE). Administering this by yourself is likely to cost you more time and money, then using a professional.
- Operating PAYE helps to deduct tax and National Insurance contributions (NICs) from employees’ pay and calculate employer’s NICs due HMRC. If you use PAYE, you must keep records of each employee’s gross pay for both tax and NICs, if different, and of the deductions you make. When you pay your employees you submit these payroll records to HMRC.
- The deadline for submitting the payroll (Full payment submission) each month, is on or before the date salary payment is made.
- Under RTI, you still need to send a year-end submission (EPS)- which effectively replaces the P35 – by the 19th April
- If your average PAYE/NIC liability is above £1,500 you must pay monthly, otherwise quarterly.
- The deadline for electronic payments to clear into HMRC’s bank account for any PAYE and Class 1 NICs is the 22nd of each month/quarter. (19th for cheque payments)
- The deadline to tell HMRC about expenses payments and benefits that employees have received (P11D Forms) for the tax year ended on 5 April need to be filed by 6 July
- If paying electronically, your payment of Class 1A NICs must clear into HMRC’s bank account by 22 July. (19th for cheque payments)
Failure to meet any of the above requirements, can result in fines or interest charges
What we can provide
- By using our team to provide this payroll service, it will make sure that the payroll is correct, on time, and RTI compliant.
- We will let you know what your payroll liabilities are and when to pay them.
Tax tip: Directors who own their business should consider remunerating themselves a small salary equal to the lower earnings limit (£148 a week in 2013/14) to qualify for the state pension, whilst incurring no NI or Tax liability due to being below those limits.