Our flexible payroll services include a bespoke service working closely with our clients to ensure that we achieve accuracy and efficiency. As an accredited agent we can take care of all your salary calculations, HMRC, pensions and other needs related to PAYE. Employing Harrison Hinchliffe & Co we can deal with all the revenue on your behalf further freeing you up to focus on your business goals.
We are completely RTI compliant, this requires all UK employers to notify HMRC of their liability to PAYE at the time or before they make payments to employees. With our payroll software, we are able to collect the relevant information and it then can be sent to HMRC through our Government Gateway.
This is another headache that you as an employer don’t want to be faced with, so it makes sense to outsource your payroll solutions to a reputable accountants firm.
Payments and deductions
When paying your employees through payroll you also need to make deductions for PAYE.
Payments to your employees
Payments to your employees include their salary or wages, as well as things like any tips or bonuses, or statutory sick or maternity pay.
Deductions from their pay
From these payments, you’ll need to deduct tax and National Insurance for most employees. Other deductions you may need to make include student loan repayments or pension contributions.
Reporting pay and deductions
We will report your employees’ payments and deductions to HMRC on or before each payday.
Our payroll software will work out how much tax and National Insurance you owe, including an employer’s National Insurance contribution on each employee’s earnings.
Paying HMRC
We will send you a report monthly with details of what is due, when it is due and how to pay it.
Contribution rates
An employee’s Class 1 National Insurance is made up of contributions:
The amounts deducted and paid depend on the employee’s earnings and National
National Insurance rates
You can find the current year national insurance rates along with the Category letters here. https://www.gov.uk/national-insurance-rates-letters
Employment Allowance
You could get up to £5,000 a year off your National Insurance bill if you’re an employer.
What you’ll get
The allowance will reduce your employers’ (secondary) Class 1 National Insurance each time you run your payroll until the £5,000 has gone or the tax year ends (whichever is sooner).
You can only claim against Class 1 National Insurance you’ve paid, up to a maximum of £5,000 each tax year. You can still claim the allowance if you pay less than £5,000 a year.
Eligibility
You can claim Employment Allowance if:
You can only claim Employment Allowance for one PAYE scheme.
If you’re part of a group, only one company or charity in the group can claim the allowance.
You can’t claim if:
Construction Industry Scheme (CIS)
You must register as a contractor with the Construction Industry Scheme (CIS) if:
You may be a sole trader, in a partnership or own a limited company.
Rules you must follow
File your monthly returns
You must tell HM Revenue and Customs (HMRC) each month about payments you’ve made to subcontractors through your monthly return.
On your return, you must declare that the subcontractors listed aren’t employees.
You could get a penalty of up to £3,000 if you give the wrong employment status for a subcontractor on your monthly return.
You must still file a return for the months when you made no payments to subcontractors (unless you request for your scheme to be made inactive). This is called a ‘nil notification’.
Deadlines
Send your monthly returns to HMRC by the 19th of every month following the last tax month.
Example If you’re making a return for the tax month of 6 May to 5 June, it must reach HMRC by 19 June.
Penalties for late returns
You’ll get a penalty if you miss the deadline for filing returns, including ‘nil notifications’.
The penalty will be cancelled if you let HMRC know that you didn’t pay any subcontractors that month
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