Payroll & PAYE

What is PAYE?

PAYE is a system used by HMRC to collect Income tax and National Insurance contributions from employees and employers in the UK.

 

If you have people working for you or your company and their monthly earnings are above £520 in 2020/2021, you need to register as an employer.

You may also need to register for PAYE if you are a Contractor in CIS (Construction Industry Scheme) and you have subcontractors working for you as self employed individuals.

 

What are my responsibilities as an employer?

  • Monthly, all employers have to report the wages via the PAYE system and deduct Income tax and National Insurance from the employees’ wages.

  • Monthly or quarterly, these deductions along with Employer NI contributions, have to be paid to HMRC.

  • Also, your company has to provide a monthly payslip to the employee, detailing income and deductions.

  • When the employee leaves employment, P45 has to be issued

  • At the end of the financial year, the company has to issue a P60 for each employee present on their payroll

Do I need to register as a private pension provider?

If you employ at least one person, you need to put them into a workplace pension scheme and contribute towards it.

This means that you and your staff have to make contributions towards the employee’s pension fund. In 2020/2021, the employer minimum contribution is 3% and the employee’s minimum contribution is 5% from their qualifying income.

We highly recommend talking to a member of Priority Point to receive qualified advice on whether your company has to register as a private pension provider.

What can Priority Point do for you?

  • We can apply for PAYE employer registration on your behalf

  • We can register your company as a private pension provider and set up the pension fund

  • We educate you on steps to take, to ensure your business is fully compliant with HMRC for PAYE purposes

  • We process your employee’s salaries and private pension contributions and provide you with monthly payslips for your staff

  • We produce P45s, P60s for your employees

  • We submit the monthly payroll report to HMRC via our software

  • We notify you of the amounts due to HMRC 

  • We keep you up to date with all deadlines for payments

  • We contact HMRC on your behalf for PAYE purposes, via phone or post

Talk to us about your business's needs.