PAYE Solutions in Leamington Spa

Operating PAYE can be a complex undertaking, which involves:

  • Recording deductions
  • Deducting employee Class 1 national insurance contributions (NICs)
  • Calculating and deducting PAYE income tax from employees' pay
  • Sending data on a regular basis to HMRC
  • Paying the deductions to HMRC within set time limits
  • Paying employer Class 1 NICs to HM Revenue & Customs
  • Showing tax and NIC deductions on an employee's payslip

Michael Harwood & Co can help, by dealing with PAYE on your behalf.

PAYE is applied to all payments that an employee receives as a result of being employed by you. This may include:

  • Salary
  • Lump sum and compensation payments
  • Overtime, shift pay and tips
  • Non-cash items, such as vouchers and shares
  • Statutory sick pay
  • Certain expenses allowances
  • Bonuses and commission
  • Statutory maternity pay, paternity pay or adoption pay

Separate rules apply to PAYE on expenses and benefits provided to employees. You might also use the PAYE system to deduct loan repayments, employee pension contributions, or student loan repayments.

Employers must provide each employee with a pay statement at or before the time they are paid. The payslip must include certain items, such as gross pay, tax and Class 1 NICs and other deductions, and the net amount payable. Additional payments and deductions may also need to be included, depending on an employee's circumstances. Other statements, including the P60 end of year certificate must also be provided at the end of each tax year.

With effect from April 2013, HMRC is introducing a new way of reporting PAYE, known as Real Time Information (RTI). Under RTI employers are required to submit information about the payments and deductions they have made when or before each payment is made, rather than at the end of the tax year.

Administering PAYE can be very onerous for business owners. As expert providers of PAYE services to Leamington Spa businesses, Michael Harwood & Co can help you by looking after your PAYE records for you, while ensuring that your payroll complies with the regulations, including the new Real Time Information requirements.

For more information, including details of our PAYE health check, please contact us.