PAYE
PAYE/NIC is a fundamental part of all businesses whether you’are a one-man-band with one employee or have 100+ employees. Be clear on paying PAYE/NIC with the help of our specialist accountants.
Get StartedWhat is PAYE?
As an employer you are required to operate PAYE (pay as you earn) as part of your payroll. PAYE is the way in which HMRC collects Income Tax and National Insurance from employees and employers. Every time you pay your employees you need to make deductions for PAYE, national insurance and other possible business deductions. It might sound easy, but it can get complicated and the implications of getting it wrong are expensive.
Payments to employees include everything from salary or wage, tips, bonuses, and statutory sick pay, or maternity leave pay. Tax and National Insurance will need to be deducted from these payments for most employees.
You might have to make other deductions too such as student loan repayments and pension contributions. All your employees’ payments and deductions are required to be reported to HMRC by the employer on or before each payday.
Paying PAYE
Computer technology has advanced significantly over recent years which has led to HMRC taking full advantage and enforcing more regulations on employers. This is in respect of late payment penalties of monthly or quarterly PAYE, for failure to submit “real time” returns (RTI) of employee deduction details.
Real Time Information (RTI) replaced the annual return (P35) and for each tax month an employer must make a return of the pay and deductions made. This is to make sure that the exact right PAYE and NI is accounted for at the correct time.
PAYE set up
To set up PAYE you first need to register as an employer with HMRC, to get a PAYE Reference and Accounts Office Reference. Most businesses outsource their payroll processing for confidentiality reasons and to ensure that all HMRC deadlines are met. Outsourcing to the team at Jan McDermott Chartered Accountants will save you time, money, and a big headache.
Why get help with your PAYE?
There are several benefits to using professional accountants like ourselves for all your payroll needs not least is the fact that you will have more time to focus on other things that are important within your business. The last thing you want is a lot of your time being taken up by payroll. When you use our services to manage your payroll and PAYE, you can feel assured that we will take care of everything for you.
How we can help you
Jan McDermott Chartered Accountants specialises in all accountancy and tax support for businesses including PAYE. If you need help and support with PAYE for your business our expert team of accountants will be on hand to offer help with everything relating to PAYE and payroll.
Get in touch with our specialists today to take control of your PAYE.
Frequently Asked Questions
Any employer with employees. Whether you have just 1 employee or 100, you must operate PAYE. This applies to businesses such as limited companies, sole traders, partnerships, start-ups, and other sectors (e.g. games/app developers). The responsibility for making correct deductions and payments to HMRC lies with the employer.
You must deduct Income Tax and National Insurance from employees’ pay, pay employer National Insurance, and submit Real Time Information (RTI) returns to HMRC. RTI replaced the old annual P35 return; for each tax month, employers must make a return of pay and deductions made in real time.
Jan McDermott Chartered Accountants specialise in all areas of accountancy and tax support for businesses, including PAYE and payroll. Their expert team provides help and support with everything relating to payroll and PAYE, ensuring accurate deductions, RTI compliance, and timely payments to HMRC. Outsourcing PAYE and payroll to them saves time, money, and avoids headaches, allowing you to focus on running your business
Alan Robson
They provide us with a fully outsourced finance function so that our own team can focus on our business. They implemented Xero software from day one of the company meaning that we have real-time visibility of our business at all times, The monthly management accounts meetings we have with Jan really add value to decision-making and strategic planning and we wouldn’t be without them.
Peter Broxton
Their professionalism, expertise and client care are outstanding and they have supported our growing business no end. They look after everything from our bookkeeping, VAT, annual accounts, as well as claiming Research & Development tax relief, preparing budgets and forecasts and assisting with grant claims. The whole team are always responsive, friendly and reliable and we wouldn’t hesitate to recommend them to anyone looking for a trustworthy and efficient firm to look after their business finance requirements.
Scott Hackett
I moved my accounts over to Jan at the beginning of the year and have been extremely impressed with her attention to detail and precision. She’s made it easy for me to understand and manage all the key aspects of my accountancy, as well as offering useful suggestions of ways to improve and make things work more efficiently for me and my business. I’d highly recommend Jan and her team to anyone looking for professional, friendly, and reliable accountants that truly get to know you and offer a tailored service.”
Alistair Evans
Jan McDermott & Co have been our accountants for over 15 years and have not only ensured our accounting records are accurate and legal, but also provided us with first class advice to help us grow. They recommended our move to Xero accounting software which has revolutionised our business, allowing us to create predictable income through the use of Go Cardless Direct Debits, and streamlining our day to day accounting operations. Jan and her team are friendly, easy to work with and take time to understand a particular problem or situation. I wouldn’t hesitate to recommend them to any business that wants an accountancy firm they can grow with and depend on.