As an employer you normally operate PAYE as part of your payroll. PAYE is the system by which HMRC collect tax and national insurance from employees. However if none of your employees earn over £113 per week you don’t need to register for PAYE.
Your payroll software will calculate how much tax and national insurance employees owe, as well as other deductions such as student loan and pension (auto enrolment).
As part of HMRC’s Real Time Information requirements you need to report employees payments and deductions on or before pay day. As well as regular payments and deductions you will also need to report when an employee starts or leaves or when their circumstances change i.e. they reach State Pensionable Age.
If you are contemplating running your payroll yourself you will need to consider: registering online with HMRC, choosing payroll software, keeping accurate records, paying PAYE to HMRC on time & following the rules for data protection.
If you are contemplating using a provider to run it for you (a payroll bureau or bookkeeper) you’ll need to consider how much support you need. Some providers will cover the whole process for you and ensure you comply with all HMRC requirements, other providers will provide varying levels of support. Ensure you discuss all the options before making a decision.
If you would like further details on how we can run your payroll for you please get in touch 01454 329507.