The process of calculating, reporting and actioning payments to employees is commonly referred to as “payroll”.
Payroll is usually “run” regularly, often on a weekly or monthly basis, when staff are employed. The process involves working out how much each staff member is due in salary, starting with their pay before tax as agreed with each employee (or their hours worked if on an hourly basis), then deducting Income Tax, National Insurance contributions, and any other deductions such as student loans. The remainder referred to as net pay, is then paid to the employee.
Employers must pay any amounts kept back from employees to the relevant parties, for example, tax and National Insurance contributions must be paid to HMRC, and pension contributions to the pension provider.
Employers have a duty to report to HMRC various details of each “pay run”, electronically, on or before the day the employees are paid – this process is known as RTI (Real Time Information).
Good to know
Employees have the right to receive a payslip on or before the day they are paid (there are a few exceptions to this rule). The payslip must show certain pay related information and be provided to the employee either in a printer or electronic (online) format.
Employers need to make HMRC aware each time an employee starts or leaves and are also responsible for ensuring that tasks such as statutory leave and statutory pay are managed correctly.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. If you employ at least one person you are an employer and you have certain legal duties.
For many businesses, the thought of running payroll and the associated compliance tasks can act as a barrier to employing staff. At Caroline Hinde Accountancy we can guide you through the whole process from initial registration to managing your regular pay runs for you.
As with our other services we are flexible so feel free to arrange a consultation for us to discuss how we can help you.
Don’t just take our word for it!
We chose to work with Caroline Hinde Accountancy because we wanted to have a real-time view of our business performance, rather than months after the year had ended. Having this information has enabled us to take informed decisions which has enabled a period of growth for us.
Knowing that everything is taken care of on a monthly basis gives us huge peace of mind and we always know well in advance of our tax liabilities so we are always in control of our cashflow. We now use the software recommended to us to send our customers invoices which look professional and make it easy for us to monitor any outstanding invoices.
The service we receive from Caroline Hinde Accountancy is invaluable - they're approachable, friendly and professional.
Caroline has recently finished my accounts for me. She has done an excellent job of pulling everything together and I felt both relieved and confident, that they were submitted correctly.
I am so pleased that I asked for Caroline's assistance in helping me with my accounts. Even though I'm just a small business, it was nice to have that reassurance, that everything has been done correctly. It was money well spent!
I found Caroline to be very approachable and helpful in her advice. A lovely person to work with - thank you!
A fabulous accountant with a personality and a sense of humour? An oxymoron I hear you cry! But not at all. Caroline Hinde is all of that!
For a small business owner like me who knows next to nothing about self assessment and has no inclination to further their knowledge, what I need is someone who simply takes care of it all. That’s exactly what I got from Caroline; she is efficient and friendly and is incredibly knowledgeable. Nothing is too much trouble and she has taken all the stress out of the whole process for me.
I can’t praise Caroline highly enough and would recommend her to anyone I know and indeed have done so whenever I can. Look no further than Caroline, and you will not be disappointed.
I have found Caroline to be highly professional, efficient, knowledgeable, friendly, and helpful in my dealings with her, and have no hesitation making a recommendation.