Many businesses start with just the business owner. As a business grows, so its personnel expands either via contractors or employees. There are a number of advantages to employment for both employer and employee.
If your business contracts an employee, you are required to register as an employer and operate a PAYE payroll.
This can also be the case if you privately employ a person to work in your home, such as a cleaner, cook or a gardener. The requirement to operate payroll for domestic staff is referred to as PAYE DOM, and there are agencies that specialise in the so called, nanny tax. Coman & Co. does not normally offer a domestic PAYE service as our focus is on payroll services to small businesses.
Even if you are the only person in your limited company, if you receive a salary you will be both employer and employee and as such may need to operate PAYE. It is usually beneficial for a director to receive a salary up to the national insurance threshold. We therefore provide a payroll service for one person companies, to support tax efficient extraction of company profits.
Employment law and payroll regulation is growing in complexity and placing greater demands on business owners. Real time information and auto-enrolment requirements are two recent examples of this increase in regulation. Consequently, once an employer, the risk increases of paying penalties for unintentionally missing a deadline or falling short of a requirement.
We offer a comprehensive and confidential payroll service, which includes:
- Processing payslips and advising you on the tax to pay HMRC and the net pay for each employee
- Dealing with complications, such as statutory sick pay, maternity pay, paternity pay, holiday pay and termination pay
- Completing monthly returns to HMRC and filing them online for you. This is to comply with the Real Time Information Requirements.
- Provide P60s in March each year or P45s, when the employment ceases. A P45 requirement often applies to directors of their own company returning to employment.
- Student loan repayment deductions
- Auto-enrolment, which is the requirement to make contributions to your employee's pension.
- The construction industry scheme.
We also offer payroll advice on areas such as salary sacrifice, employer benefits, and on the most suitable system for expense reimbursements. Where PAYE payments are low, there is an option for making quarterly payments.
Once a UK taxpayer has income of over £100,000 they are required to complete a Tax return. Since we offer a Tax return service, we are well experienced in dealing with PAYE related issues for high earners and can apply this experience in helping to advice and assist with suitable payroll arrangements.
Please contact us if you would like to discuss any aspect of staff remuneration including payroll management.