Payroll and PAYE
The abbreviation PAYE stands for Pay As You Earn.
UK Businesses that employ workers being paid wages or salaries are legally obliged to register for PAYE and collect tax on behalf of HM Revenue and Customers.
When a director of a limited company is also the owner and is withdrawing money through salary payments then the company must register for PAYE and file PAYE documentatioin to HMRC. Satisfactory payroll records must be maintained at all times.
The director is the employee of the company and all salaries and bonuses paid to the directors will be subject to PAYE.
The Company, acting as the employer, is legally obliged to ensure the correct Income Tax and employees’ National Insurance Contributions (NIC) are deducted from salaries and wages. The Company also pays a company’s share of the NIC called ’employer’s national insurance contribution’ which must also be paid to HMRC.
Outsourcing Payroll and PAYE to White Fortt Accountants
White Fortt Accountants Bournemouth and Poole provide payroll and PAYE processing services to small and large enterprises. Due to our experience and expertise we are able to provide a very cost effective payroll and PAYE package. We will process wages and salaries and produce payslips for your employees and follow up with the completion of the required PAYE forms for submission to HMRC.
Outsourcing PAYE can free up your time for more valuable business activities.
Real Time Information and your Payroll:
In April next year HMRC will be rolling out how businesses record and report PAYE called ‘Real Time Information’ (RTI).
How will RTI impact your business?
Currently, businesses submit their payroll information and payments at each year end. The new system – RTI – will necessitate PAYE information being provided on a monthly basis. Payment of PAYE contributions will remain the same i.e. still to be paid at year end.
The majority of employers are required by law to apply RTI to their PAYE process by April 13 with the remainder of employers providing this by October 2013. You will be advised by HMRC when you will be required to adhere to the new system.
White Fortt are fully conversant in the RTI process and can provide advice and/or training for Poole and Bournemouth employers. If preferred we can discuss with you our RTI services to avoid extra pressure on your current accounting resources.