Payroll Services
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Managed Payroll Service
Keeping track of payroll is crucial, and nothing frustrates employees more than errors or delays in receiving their pay slips. Our outsourced payroll solution ensures your employees are paid on time and that their national insurance and pension payments are accurately calculated. We provide a comprehensive payroll service, handling all aspects to ensure accuracy and timeliness.
We will inform you who and what to pay, provide you with pay slips, and file your HMRC reports on your behalf. Our all-inclusive unlimited service plan, well-known for covering all accounting services required by UK businesses, is available for a fixed monthly fee. Additionally, when you sign up for our all-inclusive service, we offer a 50 percent discount on any outstanding payroll responsibilities you may have.
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- contact@theaccountantpoint.co.uk
- +44 7840 100 078
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Payroll Services FAQs
The Accountant Point covers all your payroll needs, including pensions and CIS where applicable.
As an employer, your role is crucial. You create contracts for your employees and ensure they receive fair treatment in the workplace.
While having employees is beneficial, UK employers are responsible for paying their employees and using PAYE for payroll. Employers must also pay some employees’ PAYE to HMRC. The process might seem daunting initially, but once set up, it becomes straightforward.
The Accountant Point offers comprehensive online payroll services at a low cost, saving your company time and money.
Each customer is assigned a payroll administrator to assist with payroll services and answer any queries.
We also offer bookkeeping and accounting services, allowing you to manage all your administrative needs in one place.
We provide an accurate payroll solution for businesses of all sizes and sectors in the UK. Our outsourced payroll system is fully managed and easy to use, saving your company time and money. Let The Accountant Point handle all your UK payroll needs today!
Our payroll experts manage your employer responsibilities and auto-enrolment standards, saving you time and avoiding potential penalties.
The Accountant Point offers a cost-effective, dedicated team tailored to meet your payroll outsourcing requirements.
Employers should set up employee payroll immediately after hiring their first employee. This should be done before paying their first salary or wages. Avoid leaving this task until the last minute to prevent any unexpected issues.
Before paying your employees using PAYE, follow these steps:
- Register with HMRC: As an employer, you must register with HMRC. After registration, HMRC will send you a PAYE reference number and a welcome package. Allow up to five working days for HMRC to respond.
- Obtain National Insurance Number and Tax Code: Ask your employee for their national insurance number and tax code, as these are necessary for processing payroll.
- Request a P45: If your employee had a previous employer, request a P45 to update how much tax they owe for the current tax year. If they cannot provide one, HMRC will supply a checklist to help calculate their tax liability.
With these steps completed, you are ready to process your first employee's pay with HMRC using PAYE.
One of the main concerns with payroll tax deductions is national insurance contributions (NICs). As an employer, you must pay NICs for your employees and for yourself. NIC thresholds are lower than formal taxes, so it’s likely you will need to pay them.
Additionally, once your employees start earning a certain amount, you must calculate the income tax they owe. Deductions also include pensions, student loans, and other contributions that need to be withheld.
It's important to remember that each employee's circumstances vary based on their earnings. Therefore, ensure you have all the necessary information for each employee to accurately calculate deductions.
If you are late in submitting your Full Payment Summary (FPS) or fail to submit one, HMRC will send you a late filing notice. You may be required to pay a penalty unless you can provide a valid reason for the delay or omission.
Ensure that the Full Payment Summaries you submit are complete and sent before the cutoff date. Failure to do so, or sending incomplete payroll information, can negatively impact your employees' benefits.
New employers face a higher risk of their PAYE scheme being closed if an FPS is not submitted within 120 days. Therefore, when you register as an employer, make sure to hire and pay employees regularly. Otherwise, you may need to go through the entire employer registration process again.
Statutory payments include statutory adoption pay, statutory maternity pay, and statutory sick pay. These payments are processed through PAYE and payroll and must be reported to HMRC.
If you are an employer making statutory payments, you may be able to claim back some of these payments. The exact amount that can be recovered depends on your National Insurance Contributions each year.
Employees are entitled to 28 weeks of statutory sick pay. New mothers in the UK are eligible for up to 52 weeks of maternity leave, which also applies to adoption leave. Currently, paternity leave is set at one to two consecutive weeks.
Statutory payments include statutory adoption pay, statutory maternity pay, and statutory sick pay. These payments are processed through PAYE and payroll and must be reported to HMRC.
If you are an employer making statutory payments, you may be able to claim back some of these payments. The exact amount that can be recovered depends on your National Insurance Contributions each year.
Employees are entitled to 28 weeks of statutory sick pay. New mothers in the UK are eligible for up to 52 weeks of maternity leave, which also applies to adoption leave. Currently, paternity leave is set at one to two consecutive weeks.
Employers in the UK are required to enroll their employees in a pension scheme if they have not already done so. However, if an employee's earnings do not exceed £120 per week, enrollment in a pension scheme is not required.
Once employees are enrolled in a pension scheme, employers must:
- Ensure minimum contributions are paid by the 22nd of each month.
- Allow employees to opt out of the pension scheme and ensure any owed payments are made.
- Permit employees to rejoin the pension scheme once a year, even if they previously opted out.
- Generally, the pension contributions are deducted from employees' salaries, although in some contracts, the employer is solely responsible for making these payments.
Real-Time Information (RTI) is HMRC's advanced online system used for monitoring all payroll information. Once submitted, the information cannot be revoked, making accuracy crucial as mistakes can be costly. RTI is used for all typical payment reporting. Employers must notify HMRC if an employee quits, is fired, or if a new employee is hired. Additionally, any changes in an employee’s circumstances must be reported.
In addition to the monthly reports submitted to HMRC, you must also complete a year-end report by April 5, the end of the tax year. It is essential not to leave this process until the last minute, as it can be time-consuming. Typically, your year-end report will include the following:
- Provide each employee with a Form P60, summarizing all their earnings and deductions for the year.
- Report to HMRC all tax deductions, benefits, and earnings for each employee.
At the start of the new tax year, you should also:
- Update all your payroll software.
- Update the payroll records of all your employees.
If you find managing payroll taxes and PAYE challenging, consider hiring a tax professional or accountant to handle PAYE for you. This ensures compliance and helps you avoid issues with HMRC. If hiring a full-time professional is too expensive, you can hire a freelancer on an hourly basis or take time to learn how PAYE works. Understanding PAYE can be beneficial as an employer. If you have any questions, you can always contact HMRC’s payment helpline.