Payroll Services

Payroll Services London

Why Choose Us ?

Everything seemed fine running your own business until the day you took on your first employee and became an unpaid tax collector Taking on new employees is often a sign of company growth and progression but often businesses lack expertise in Human Resources to comply with rules and regulations. Consultax Chartered Accountants  can relive you from this burden of having to undertake payroll for your employees. Whether it is weekly or monthly we can provide you the level of service you need. Payroll reports will be submitted to HMRC as they fall due, payslip reports produced for employees and finally the tax which is owed to HMRC.

How to stay compliant with Payroll

Pay As You Earn and is the system used by HMRC to collect income tax and National Insurance from employees as well as the employer’s National Insurance. The employer is responsible or making the correct deductions before paying out, regardless if you are an employee or a director. The deductions must be paid to the agreed timelines (19th of every month unless paying electronically when the money must reach HMRC by 22nd). In the event where the monthly deduction average is less than £1,500, the employer can pay quarterly. Just to complicate matters, if an employee has benefit in kinds, additional tax liability arises. Certain types of benefits provided to employees may be exempt from tax but most are taxable. This also and must be declared to the HMRC by means of an end of year benefits form P11D or P9D and also additional tax in the form of Class 1A NIC is payable by the employer on by 6 July after the end of each tax year.

PAYE applies to all types of payments you make to your employees including:

  • Statutory Maternity/Paternity/Adoption Pay
  • Overtime
  • Salary and wages
  • Tips
  • Bonuses and commission
  • Statutory Sick Pay
  • Expense allowances and claims when paid in cash
  • Lump sum and compensation payments including redundancy (unless they are exempt from tax)
  • Payments other than in cash, such as shares or vouchers

The PAYE Nightmare

The most common forms required:

  • Pay slips – which are your own forms you supply to your employees to show how their pay has been calculated and the deductions made
  • Form P45 – as explained above, new employees with a previous job give you a copy of this from their previous employer and you provide employees who leave your employment with one
  • P11 Deductions working sheet – this may be manual or computerised but records all the salary and NIC payments made
  • P14/P60 – this is the end of year summary which is given to the employee and copies to HMRC
  • P35 – this is the Employer’s Annual Return which summarises all deductions made from employees in the year to 5th April
  • P11D – used at the end of each tax year to provide details of benefits and expenses paid to employees who earn over £8,500 and all directors
  • Statutory Maternity/Paternity/Adoption Pay
  • Lump sum and compensation payments including redundancy (unless they are exempt from tax)
  • Payments other than in cash, such as shares or vouchers

Already left confused where to start? We will take care of all this for you so you will never need to worry about complying with red tape again (not for payroll atleast!) We run payrolls on time and can provide a tailor made service for your business including:

  • Employee payslips
  • Monthly summaries
  • Departmental reports
  • Dealing with leavers and starters
  • Provision of analysis of staff costs
  • Real Time Information (RTI) PAYE returns for the Revenue
  • Assistance with automated payment set-up to your employees
  • CIS returns completed by us

And at year end

  • Employee summary P60’s
  • P11D and P9D benefit and expenses returns

Beyond the payroll compliance service, we offer comprehensive advice on all employment tax issues including:

  • Tax efficient remuneration strategies
  • Planning for retirement
  • Termination payments
  • Inducement payments
  • Company car and van strategies
  • Benefits planning