UK Income Tax Returns
UK Non Residents Capital Gains Tax Returns and Resources
Other UK Tax Returns and Resources
UK Business Formations and Company Secretarial Service
If you operate a business in the UK, chances are you will be employing and paying someone. In this case, you will need to deduct and pay taxes, communicate with HMRC (HM Revenue and Customs), and pay employee pensions.
If you pay someone in the UK above a certain amount, you will need to register as an employer with HMRC and operate the PAYE system.
Under this system, PAYE tax and National Insurance Contributions are deducted from the employee gross wages in the pay period (usually weekly or monthly). These deductions are then paid over to HMRC monthly, or quarterly if the employer is classified as a small employer.
The employer also pays additional National Insurance Contributions (these are called Employer’s NICs), currently at the rate of 13.8% on taxable pay. Employer's NICs are paid over to HMRC with the PAYE tax and National Insurance Contributions deducted from the employee(s).
If an employee has a debt, their creditor may have issued an attachment of earnings order. Amounts defined by the order must be deducted from the net wages of the employee and paid over periodically to the creditor.
If an employee earns over a certain amount, the business must automatically enrol that employee into a workplace pension scheme that they have set up, and make deductions from the employee gross wages. These deductions are currently at the rate of 5% of pensionable earnings and are usually paid over to the pension scheme at monthly intervals, together with employer contributions to the employee’s/employees’ pension. Employer contributions are currently made at the rate of 3% of pensionable earnings.
The employer periodically sends payroll details to HMRC. This is done at the pay period date. For example, If the payroll is monthly, there will be 12 submissions to HMRC, but if it is weekly, there will be 52 submissions. Penalties may be issued by HMRC for late submissions in any period.
The employer will also need to manage starters and leavers, issuing P45s to leaving employees, and issuing existing employees with an annual summary at the end of the tax year.
As can be seen above, operating a UK payroll can be quite a daunting prospect.
We can manage your payroll efficiently and effectively, giving you peace of mind that you have paid your employee(s) correctly and that you have met all your obligations regarding taxes, pensions and any attachment of earnings orders.
We operate a comprehensive payroll service, including gross pay calculation, if necessary, preparing payslips for employees, and reporting pay details to HMRC and to the pension scheme administrator. We also let you know how much and when you will pay deductions etc over to HMRC, how much you will pay to the pension scheme, and how much and when you will pay to an employee’s creditor(s) through an attachment of earnings order, if applicable.
Pay period details and confirmation that these have been submitted to HMRC within the time limits are sent to you electronically, together with payslips for the employees. We can also arrange that employees are automatically sent their payslips electronically.
If you currently manage your own UK payroll, but feel that you are spending an inordinate amount of time that could be more productively spent elsewhere, we would be happy to manage it on your behalf.
If you need to set a UK payroll system up, we can either guide you through the process or set it up on your behalf. This would include registering with HMRC and setting up a pension scheme.
The cost of using our UK Payroll service depends on the number of people employed by the business/employer.
We charge AUD3.85 (inc taxes) per employee per pay period. Set up costs for either a new payroll, or an existing payroll now to be managed by us amount to AUD3.85 (inc taxes) per employee. The set up cost for adding a new employee to the payroll system is AUD3.85 (inc taxes) per employee.
If your business operates in the Construction industry, it is likely that you will need to register for the Construction Industry Scheme (CIS). Click here to open a new window and review how CIS operates. When you have reviewed this, you can close the window and you will be back on this page.
To register for the Construction Industry scheme, we can either guide you through the process or set it up on your behalf. We also offer a comprehensive UK CIS service, making sure that you fulfill your obligations and giving you peace of mind.
The cost of using our UK CIS service depends on the number of subcontractors. We charge AUD3.85 (inc taxes) per subcontractor per pay period. The set up cost for adding a new subcontractor to the CIS system is AUD3.85 (inc taxes) per subcontractor.