Payroll- Basic Procedure

If you wish to set up a PAYE scheme with the HMRC you must contact the New Employer’s Helpline (0300 200 3211) or register online (GOV.UK).

As the employer, you are responsible for operating PAYE and calculating the appropriate National Insurance Contributions (NICs). There are also certain statutory payments that must be paid from time to time, such as:

·      Statutory sick pay (SSP)

·      Ordinary statutory paternity pay (OSPP)

·      Statutory maternity pay (SMP)

Information regarding the operation of PAYE is available from the official GOV.UK website: www.gov.uk/business-tax/paye

Real time payroll

Employers, or their agents, will normally have to make a regular online payroll submission for each pay period during the year. This will detail all payments and deductions made from employees on or before the date they are paid to the employees.

More information on real time payroll can be found at www.gov.uk/paye-for-employers

National Insurance Contributions

NIC is payable by the employee and the employer on the employee’s gross pay for a particular tax week or month and is calculated on a non-cumulative basis. 

When does tax and NIC have to be paid to the HMRC?

Tax and NIC should be paid to the HMRC by the 19th of the month following the payment. Tax month run from the 6th to the 5th of each month.

Any employee that pays electronically can take advantage of the cleared electronic payment date of the 22nd rather than the 19th.

Employers whose average monthly payments do not exceed £1,500 are able to pay quarterly rather than monthly.

 

Forms you must complete:

·      P11 Deductions working sheet

·      P60 End of year summary

·      P45 Details of employee leaving

·      Starter Checklist

 

If you fail to meet PAYE regulations you can face penalties. Contact us now for payroll support.