PAYE Tax & NI, Payslips and Other Payroll Services

EKG Accounting can offer you a payroll service tailored to your needs. Payroll services include calculating PAYE tax and NI, auto-enrolment, provision of payslips and submission of Real Time Information to HMRC.

The payroll tax system in the UK is efficient and well developed. The legislation sets rules for the minimum wage and required tax and social security deductions. Companies are responsible for the accurate and timely calculation and payment. It remains the company’s legal responsibility to comply with UK payroll legislation. There are strict penalties for non-compliance or incorrect submissions.

PAYE is the UK government’s scheme for collecting tax and national insurance from employees. Any company employing one or more employees must register as an employer, keep records, and submit full payment details through the PAYE system. Employers must submit all payroll information on or before the day staff are paid. This is known as a Full Payment Submission (FPS) through a system called Real Time Information. This is usually done monthly but can be done weekly. All payments due to HMRC through the PAYE system need to be paid by the 22nd of the month following the payroll date.

Employers must calculate national insurance contributions and payroll taxes for each employee. These are then withheld from the payment to the employee and paid directly to HMRC. If an individual has additional income other than the main salary, they will need to complete a personal tax return (usually a Self-Assessment tax return) to declare any additional tax requirements. This is the individual’s responsibility.

If you have UK employees, your Auto Enrolment legal duties begin on the day your first employee starts work. All employers should offer a workplace pension for employees aged over 22 with a salary of over £10,000. That means you need to assess if your staff is eligible for auto-enrolment, set up a company pension scheme, enrol them into the scheme, communicate with them, complete a declaration of compliance and re-assess their eligibility every pay period.

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