For most businesses, big or small, the majority of spending goes on wages. And with that comes a lot of concern about getting it all right. We’ve given you a few tips on what you can do to minimise stress.
Use an accountant or accounting software
We’re not saying it’s not possible to manage payroll on your own but it can take up valuable time that might be better spent on other aspects of the business.
You can use software such as Sage or HMRC online payroll scheme, which are fairly easy to get your head round if you’re computer literate.
Your other options are using a payroll bureau or an accountant to handle your payroll needs. The advantage of accountants is that they are often a little more accommodating than the bureaus, but they often charge higher fees for the privilege.
If you are a small business, it’s possible that you might pay less than £1,500 to HMRC each month in income tax, national National Insurance and other deductions. If this is the case, you might have the option to pay quarterly. You can call HMRC to find out if you’re eligible.
Take advantage of resources
Keep an eye on HMRC’s Emplyer Bulletin. This year’s February edition had plenty of advice on end of year reporting, including important updates to the Basic PAYE Tools (BPT), changes to late filing penalties, and how to avoid duplicate employment records.
Know your fines and deadlines
The end of the tax year is 5 April 2015.
22 April is the deadline for electronic payments to be cleared in HMRC’s bank account for any outstanding PAYE and Class 1 NICs for the tax year ending 5 April 2015.
19 July is the deadline for postal payments to reach HMRC Accounts Office for any outstanding Class 1A NICs for the tax year ending 5 April 2015.
Final date for electronic payments to be cleared in HMRC’s bank account for any outstanding Class 1A NICs for the tax year ending 5 April 2015.
As of 6 March this year, PAYE schemes with 49 or fewer employees may face penalties for late filing of PAYE reports.
Some Useful Numbers
Been an employer 3 years or less? 0300 200 3211 Mon – Fri 8am – 8pm, Sat 8am – 4pm
Been an employer more than 3 years? 0300 200 3200 Mon – Fri 8am – 8pm, Sat 8am – 4pm
Take a look at our Payroll and PAYE page for more information on how we can help.