Payroll & CIS

We can provide an efficient, cost-effective Payroll Service for your business ...

Payroll services to suit your business.

We are able to provide complete payroll services, whatever the size or complexity of your business.

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"We can provide an efficient, cost-effective Payroll Service for your business."

Payroll Processing

As an employer you will be responsible for operating PAYE and calculating National Insurance Contributions (NICs).

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Payroll Management

The Real Time Information requirements are wide ranging and potentially onerous on employers.

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With the implementation of Real Time Information, HMRC require information on or before the date of payment to the employee.

We are able to provide complete payroll services, whatever the size or complexity of your business. Our specialist team will ensure all legal obligations are met and tailor our service to suit your business needs. We will tell you how much to pay before each period end, send reports to analyse staff costs and inform changes in employment legislation that will impact payroll.

  • Administration of PAYE, national insurance and statutory payments
  • Summaries and analysis of staff costs
  • Weekly, fortnightly, four weekly and monthly payslips
  • Completion of statutory forms, including P60s and P11Ds
  • HMRC queries including P60s and P11Ds
  • Construction industry schemes (CIS)
  • Workplace pensions

Payroll Processing

The Real Time Information requirements are wide ranging and potentially onerous on employers.

We at Everest & Co – Accountants, can help you to set up and run your payroll on your behalf. We set out below details of how payroll information has to be submitted to HMRC under Real Time Information (RTI).

Under RTI, employers or their agents are required to make regular payroll submissions for each pay period during the year, detailing payments and deductions made from employees each time they are paid. There are two main returns which an employer needs to make which are detailed below.

Full Payment Submission

Employers may also have to make a further return to HMRC each month, the Employer Payment Summary (EPS) to cover the following situations:

  • where no employees were paid in the tax month
  • where the employer has received advance funding to cover statutory payments
  • where statutory payments are recoverable (such as Statutory Maternity Paternity or Shared Parental Pay) together with the National Insurance Compensation payment; or
  • where CIS deductions are suffered which could be offset (companies only).

HMRC will offset the amounts recoverable against the amount due from the FPS to calculate what should be payable. The EPS needs to be with HMRC by the 19th of the month to be offset against the payment due for the previous tax month.

Payments to HMRC

Please bear in mind that under RTI HMRC are aware of the amount due on a monthly/quarterly basis. This will be part of the information reported to HMRC through the FPS and EPS.
HMRC will expect to receive the PAYE and NIC deductions less the payments each month or quarter (small employers only).

Year end procedures

At the end of the tax year a final FPS or EPS return must be made to advise HMRC that all payments and deductions have been reported to HMRC.

Penalties

Penalties apply where employers fail to meet their RTI filing and payment obligations.
In essence, late filing penalties apply to each PAYE scheme, with the size of the penalty based on the number of employees in the scheme. Monthly penalties of between £100 and £400 may be applied to micro, small, medium and large employers as shown below:

1-9 employees – £100
10-49 employees – £200
50-249 employees – £300; and
250 or more employees – £400

Each scheme is subject to only one late filing penalty each month regardless of the number of returns submitted late in the month.

HMRC charges daily interest on all unpaid amounts from the due and payable date to the date of payment, and will raise the charge when payment in full has been made. They may also charge penalties to employers who fail to pay their PAYE liabilities on time. These penalties are ‘risk assessed’ and range between 1% and 4% of the amounts paid late. The first late payment will attract a penalty.

How we can help

The operation of PAYE under RTI can be a difficult and time-consuming procedure for those in business. If your business is in the West Midlands area and you would like to discuss any aspect of RTI in more detail, please do contact us at Everest & Co – Accountant. Please email info@everestandco.co.ukor contact us.

Payroll Management

As an employer you will be responsible for operating PAYE and calculating National Insurance Contributions (NICs). There are also certain statutory payments you may have to make from time to time which you need to be aware of. These include:

  • Statutory sick pay (SSP)
  • Statutory maternity pay (SMP) and ordinary statutory paternity pay (OSPP)
  • Shared parental pay (ShPP).

Real Time Information Reporting

Employers, or their agents, are generally required to make regular online payroll submissions for each pay period during the year detailing payments and deductions made from employees on or before the date they are paid to the employees.

What Tax Do I Have to Deduct?

By using the calculators provided on HMRC’s website or equivalent software, you should be able to calculate the tax and NICs due in respect of your employees.

The tax due for a particular employee is calculated by reference to their gross pay with a deduction for their tax-free pay which reflects their particular circumstances (using their coding notice and the pay date). The remainder of the pay is subject to tax and this is calculated using the Basic PAYE tools or software.

Tax is generally calculated on a cumulative basis, looking at the individual’s circumstances for the tax year to date.

What about NICs?

NICs are payable by the employee and the employer on the employee’s gross pay for a particular tax week or month and are calculated on a non-cumulative basis. The NICs can be calculated using the HMRC Basic PAYE tools or equivalent software.

When do the tax and NICs have to be paid to HMRC?
The tax and NICs should be paid to HMRC by the 19th of the month following the payment. Tax months run from the 6th to the 5th of the month, so if an employee was paid on 25 July (tax month being 6 July to 5 August) the tax and NI would need to be paid over to HMRC by 19th August.

Any employer can pay electronically, if they wish, taking advantage of the cleared electronic payment date of 22nd as opposed to the usual 19th.

Employers whose average monthly payments are less than £1,500 are allowed to pay quarterly rather than monthly. Large employers, with more than 250 employees, must pay tax and other deductions electronically.

Forms You Will Need to Complete:

You will need to complete the following forms or maintain the equivalent digital records:

P11 Deductions Working Sheet
This form (or a computer-generated equivalent) must be maintained for each employee. It details their pay and deductions for each week or month of the tax year.

P60 End of Year Summary
This form has to be completed for and given to all employees employed in a tax year.

P45 Details of Employee Leaving
This form needs to be given to any employee who leaves and details the earnings and tax paid so far in the tax year. New employees should let you have the form from their previous employer.

Starter Checklist
When a new employee starts you will need to advise HMRC so that you can pay them under RTI. Some of the necessary information may be obtained from the P45 if the employee has one from a previous job.

Penalties

HMRC impose penalties on employers who fail to:

  • Make the online submissions on time
  • Pay the liabilities on time
  • Keep the necessary records
  • Operate PAYE or NI correctly
  • Make the correct statutory payments
  • Provide HMRC or the employees with the relevant forms on time.

It is important that employers comply with all the regulations.

How we can help

Payroll basic procedures can be difficult and time consuming for those in business. We will be happy to show you how to operate PAYE correctly, offer ongoing advice on particular issues, or to carry out your payroll for you. So please do contact us at Everest & Co – Accountants and find out how we can help your business thrive with our complete payroll services.