Our Payroll Services
It is apparent that business owners have a lot more to deal with than they did several years ago in all aspects of business. However, the government is continuing to introduce new hoops for you to jump through.
Payroll is no exception to the ever-growing complexity business owners must battle.
Trying to stay ahead of HMRC’s rules can make it tricky to be compliant all year round, and that’s without trying to keep up with running the payroll, submitting RTI (Real Time Information), Employees NI, Employees PAYE, Employers NI, deductions such as student loans, sick pay, maternity pay, holiday pay, pensions and more on the never ending list of payroll quirks – you still have to make sure you pay the employees and HMRC on time.
It would be pretty easy to make a pig’s ear of it, right?
Well, not with our help!
Making it simple in 5 steps.
Pink Pig will undertake the following payroll services:
- Receive hours, pay and changes from client and calculate the payroll.
- Full auto enrolment service including compliance audit on each run.
- Submit payroll on the frequency of your choice and all relevant reports.
- Securely send payslips electronically.
- Complete in-depth reports detailing payments and deductions and send to you.
Optional extra: Pay HMRC and individual employees on behalf of the company – all you have to do is one transfer to our client account, simple.
At no point here do we want to play down the behind the scenes efforts, we just don’t want to bore you with it all, because trust us – it’s a cure for insomnia.
The government has now made this a compulsory offering for all employees and they are trying to set an example with hefty penalties, (obviously!)
You could say it’s important to be on top of all of this. We would agree, and that’s why we want to take away all the hassle. We can even speak with HMRC and the pension authority you choose to act on your behalf.
Sounds good, doesn’t it?
For more information on different aspects of payroll, check out our Payroll FAQs.
Below are the answers to some common payroll related queries you may have
Despite you being the director of the limited company, it is seen as a separate legal entity. In the eyes of HMRC, you could be an employee of the company (it would depend on an individual’s circumstances as to whether this would be the most tax efficient way) and pay yourself in the way of a salary (normal PAYE rules would apply). If the company makes a profit you can also pay yourself by dividend.
Don’t worry about the amounts just yet, that’s where we come in!
This is totally your choice, it can be weekly, fortnightly, four weekly or monthly- it can then be paid however and whenever you choose.
The easiest way to set up payroll is to ask us to help you. Alternatively, you can go direct to HMRC online and complete their forms.
Once registered, you will receive a PAYE and an accounts office reference number – you need to use both when submitting your payroll and making payments to HMRC.
You can’t start running your payroll until you have these numbers, so a prompt registration is important for RTI.
RTI stands for Real Time information and was designed to make PAYE submissions more efficient – meaning you’ll need to submit information to HMRC in real time, every time you pay employees.
For example, if you pay your employees every Sunday for that week, HMRC need to receive the information on or before that date.
The only information you need to set up a new employee on the payroll would be:
- Full name
- NI number
- Date of birth
- Start date
- Payroll frequency
- Tax code
- Job title
- Annual salary or Hourly rate of pay
This information can be found on the employees P45 / starter checklist.
In a word, yes. If you have employees you must automatically enrol them into a pension scheme if they are eligible.
- Classed as a ‘worker’
- Aged between 22 and state pension age
- Earn at least £10,000 per year
- Usually work in the UK
You will have to deduct National Insurance and Income Tax from your employees which you have to pay over to HMRC in addition to an element of National Insurance that is contributed by you, the employer.
The money you need to pay to HMRC is due on the 19th of the following month. For example, if you have just had the June payroll, the money due will be by July 19th.
HMRC recommend 5 different payment methods on their website. This will ensure, using the right references, that your payment reaches them securely.
- Bank details for online or telephone banking, CHAPS, Bacs
- By debit or corporate credit card online
- At your bank or building society
- Direct Debit
- By cheque through the post
Follow this link for more details: https://www.gov.uk/pay-paye-tax
A P45 is something an employee gets when they leave an employment with information such as their PAYE code, amount earned and tax paid throughout the tax year to date.
A P45 comes in 3 parts, parts 2 and 3 need to be given to the new employer. This allows the employee to be registered with the correct codes and therefore have the right amount of tax deducted. Unfortunately, this is often lost which means they are put on an emergency tax code and are overcharged tax.
This is a year end return completed by all employers. The P35 is a summary of the deductions made from all of the employees’ salaries throughout the year which is then matched to the payments made to HMRC during the tax year. The P35 is completed for each individual tax year and is due to HMRC no later than 19th May after the previous tax year. The submission can be done via the website or, once again, leave it to us.
At the end of every tax year one of these should be given to each employee by the employer. It shows the total amount of money earned and a total of all the deductions taken from it. It’s a useful document to have so make sure it’s put in a safe place.