Payroll and PAYE Returns
Everything seemed fine running your own business until the day you took on your first employee and became an unpaid tax collector.
What Is Payroll?
Running a payroll can be both intimidating and time-consuming for small business owners or company directors. Payroll is the process of paying your employees for the work that they have done, along with keeping records of said employees, making deductions (such as National Insurance) and ensuring that reports are sent to HMRC. As an employer, even if you only have one employee, you’ll likely need to engage PAYE as part of your payroll – PAYE (Pay As You Earn) is a system operated by HMRC, used to collect income tax and National Insurance (NI) from employment and wages, as well as being used to calculate and grant payments of non-taxable benefits such as Universal Credit.
As an employer, it is your responsibility to register for PAYE if your employee is paid more than £123 a week if they make pension contributions, or if they get company benefits and expenses, amongst other things, however, even if these do not apply, it is imperative that you still keep accurate payroll records.
Who Completes Payroll For Your Business?
Whilst some business owners or company directors undertake payroll themselves, or have someone in-house happy to take on the task using payroll software and PAYE Online, it can be an additional burden to the running of your business due to the complexities involved, along with it needing to be completed on time each and every tax month. This is why many successful businesses engage the services of business accountants or accountancy services in order to ensure that their company’s payroll is accurate and up-to-date, with correct records being maintained.
Hayvenhursts Chartered Accountants can help take payroll off your plate by providing a tailor-made payroll service for your business, including the following:
- Employee payslips
- Monthly summaries
- Departmental reports
- Dealing with leavers and starters
- Provision of analysis of staff costs
- Real-Time Information (RTI) PAYE returns for HMRC
- Assistance with applications of PAYE Settlement Agreements (PSAs) (a single payment made annually to cover tax payments and National Insurance for irregular employee expenses or benefits)
- Assistance with setting up automated employee payments
- Completion of Construction Industry Scheme (CIS) returns
- Nil payments
- Salary deductions through payroll, such as National Insurance contributions, pension contributions, student loan repayments and child maintenance payments
- Retention and organisation of payroll records
Our team of business accountants are qualified payroll providers, allowing you the peace of mind of knowing that you no longer need to undergo the hassle of calculating statutory sick pay or maternity pay when paying your employees their wages. Our payroll process and expert knowledge of HMRC and PAYE Online allow us to maintain an accurate payroll for your business tax month after tax month, keeping your records organised and orderly in the meantime to ensure that you don’t get caught out by the tax man.
Who Are Hayvenhursts Chartered Accountants?
At Hayvenhurts Chartered Accountants, we have extensive experience in a wide range of accounting services, including, but not limited to income tax, tax forms, VAT registration and financial management.
Our vast experience is available to both business owners and private individuals, offering not only payroll provider services but also company secretarial services, business valuations, bookkeeping (including the filing of financial records) and tax planning services. At Hayvenhursts, we appreciate that being an employer, sole trader or company director of a limited company can be overwhelming at times, so our business growth service can help you with a business plan to attain your business goals whilst creating financial stability for your company, all whilst liaising with HMRC to take reporting obligations and tax planning off your plate.
At Hayvenhursts, we pride ourselves on ensuring that we speak to you plainly and without financial and legal jargon; we ensure that we are always contactable for advice or enquiries, as we appreciate that running a business can require advice and support often. Give us a call to discuss passing your administrative burden over to us at Hayvenhursts on 02920 777 756 or contact us here today.
How Hayvenhursts Can Help You With Payroll And PAYE
If you are a business owner, a sole trader or an employer in Cardiff or South Wales, then our dedicated team of business accountants at Hayvenhursts can provide you with comprehensive payroll services. Our payroll experts use professional payroll software, PAYE online, and their industry expertise to ensure that your business’s payroll is maintained accurately and hassle-free. We also offer assistance at year-end with employee summary P60s and P11D and P9D benefit and expense returns, along with comprehensive advice on all employment tax issues, including:
- Tax efficient remuneration strategies
- Planning for retirement and pension scheme help
- Termination payments
- Inducement payments
- Company car and van strategies
- Taxable benefits planning
- Nil payments
Whether you employ only one or two others but don’t want the hassle of maintaining payroll, or you have dozens of employees with varying employee payments and resulting tax deductions and national insurance contributions, our accountancy team can be on hand to help. We take pride in our long-standing relationships with our business clients, with many using our services year after year, for both payroll and other business accountancy needs, such as business tax payments, employment allowance and assistance with workplace pension payments.
We have years of experience in managing payroll and PAYE for many businesses in South Wales, both large and small. Our affordable business accounting fees and comprehensive, high-quality client service result in our clientele entrusting us with their company’s payroll, business taxes, income taxes, and assistance with HMRC reporting. If you are an employer or business owner looking for support with your company’s payroll or require help with PAYE and tax payments, then get in touch with Hayvenhursts Charted Accountants for a free consultation by contacting us here or giving us a call on 02920 777 756.
Next Step:
Please contact us if you need further advice, have any questions about our services, or would like a free consultation.
Payroll Frequently Asked Questions (FAQ)
1. What is a personal allowance, and how does it affect employee payments?
The personal allowance is the amount an eligible employee can earn each tax year without paying income tax. Payroll compliance ensures this allowance is accurately applied to employee wages, allowing you to pay the correct amount of tax contributions.
2. What are contributions from employees, and which ones are typically included in payroll?
Contributions from employees typically include National Insurance, pension contributions, and student loan deductions. These are taken directly from employee wages and forwarded to the respective agencies or pension providers as required by payroll compliance legislation.
3. Who are considered eligible employees for payroll services?
Eligible employees include anyone earning over the weekly threshold of £123, employees making pension contributions, or those receiving employee benefits. This eligibility means they must be included in the PAYE system, with accurate payroll processing each tax month.
4. How does a payroll compliance service help my business?
A payroll compliance service ensures your business stays up-to-date with ever-changing payroll legislation, calculates tax contributions accurately, and submits required reports to HMRC. This service supports your payroll function, reducing the burden on your in-house team.
5. What happens if payrolls aren’t processed on time?
Late payroll processing can lead to missed employee payments, incorrect tax contributions, and penalties from HMRC. A reliable payroll service, such as ours at Hayvenhursts, ensures payrolls are on time each month so you avoid any compliance issues.
6. How are student loan deductions handled in payroll?
Student loan deductions are automatically calculated and taken from employee wages as part of the payroll process. These contributions are submitted to HMRC along with other deductions like National Insurance and tax, ensuring full compliance.
7. What does a payroll function include?
The payroll function includes calculating employee payments, making deductions (like National Insurance, tax, and pension), issuing payslips, handling new starters and leavers, and submitting Real Time Information (RTI) to HMRC.
8. How are contributions from employee wages handled in payroll?
Contributions from employee wages include required deductions for taxes, National Insurance, and pension schemes. These are calculated each payroll period and transferred to the appropriate agencies, ensuring full compliance with payroll legislation.
9. How do employee benefits affect payroll?
Employee benefits, such as company cars or private healthcare, are considered when calculating tax contributions. Benefits may increase tax liabilities, and payroll services ensure accurate reporting and payment to HMRC, avoiding compliance issues.
10. What are the payroll outsourcing costs, and are they worth it?
Payroll outsourcing costs depend on factors like the number of employees and specific services required. Outsourcing can often be cost-effective, as it removes the administrative burden from your team and ensures all payrolls comply with current legislation.
11. How does Hayvenhursts handle ever-changing payroll legislation?
At Hayvenhursts, we stay up-to-date with ever-changing payroll legislation, ensuring all calculations, deductions, and filings comply with current laws. This dedication means you can trust us to keep your business compliant with the latest regulations.
Next Step:
Please contact us if you need further advice, have any questions about our services, or would like a free consultation.