Payroll

Since the introduction of Real time information (RTI) in April 2013 administering payroll has become increasingly burdensome for many businesses which in turn takes more time and resources away from the core business functions.

Under RTI payroll information should be submitted to HMRC on the date salary is paid or before the salary is paid. The information is submitted electronically using HMRC online tools or can also be submitted using third party software via an FPS.

There are some exceptions to filing an FPS such as where the payment takes the form of a readily convertible asset.

PAYE Payment Dates

PAYE payments are generally made electronically and are due to be paid by the 19th after the end of the month. Each tax month ends on the 5th of the month. If the total tax and national insurance contributions are less than £1,500 per month on average the employer can make the payments on a quarterly basis. For these purposes, the four quarter ends are 5 July, 5 October, 5 January and 5 April hence PAYE payments can be made on the 19th of these months depending on the method of payment, electronic or manual.

End of Year Procedure

A form P60 must be given to an employee who earns employment income over the national insurance lower earnings limit. The deadline for providing this form is by the 31st of May after the end of the tax year which is the 5th of April. In addition to this a P11D must be submitted where applicable for employees who this applies to by 6 July following the tax year. Both forms can then be used by the employee to file there self assessment forms.

Employee Leaving

Where an employee leaves employment the employer is obliged to include the leaving date on the FPS submission. The employer should then provide a copy of the P45 (part 2 & 3) to the employee to provide to the new employer and use to complete their self-assessment where applicable.

New Employee

An employer would have to report a starter declaration for a new employee and determine what tax code must be applied to the employee.

Late Failing and Filing Penalties

It is worth noting that incorrect submissions, late filing, and late payment can result in penalties and interest payments due to HMRC.

At Emulous Accounting, we can help by

  • Registering your company for the PAYE scheme with HMRC.
  • Preparation of P11D, P60s, and P45s where applicable.
  • Calculation of monthly quarterly PAYE liability.
  • Submission of RTI returns with HMRC.
  • Preparation of weekly monthly payslips.

For more detailed information and to arrange a free consultation, please contact us.

Contact Us

13 Balmoral Road

Willesden Green

London

NW25DX

Company Number

11457978