Payroll is a crucial part of running a business and it’s important to get it done accurately and on time otherwise you’re left with unhappy employees.
Can I do the payroll myself?
Yes. Many small businesses choose to run their own payroll and if you only employ one or two members of staff, the process isn’t too time-consuming.
The most important thing to remember is that rules for payroll and PAYE change frequently, so you’ll need to keep up to date with the latest requirements. (The HMRC PAYE site is useful for this.) Mistakes can be costly and failing to pay your staff on time is embarrassing for you and demotivating for your employees.
Before you begin, you’ll need a system to run your payroll. Technically, you could still issue handwritten payslips on handmade parchment and do all the calculations yourself on a crystal abacus. There are however so many useful applications that can help you, it seems folly not to use them. Furthermore, as HMRC gradually changes over to a completely digital system, you’ll need to file your information online so creating an efficient digital system from the start makes more sense.
What payroll software will I need?
Your system will need to do the necessary calculations, produce payslips, send returns to HMRC and print P45, P60 and other forms for employees. The calculations include tax (PAYE), National Insurance, student loans, sick pay, maternity pay and workplace pensions.
Please get in touch with PKB and we can help you choose a system that works for you.
What will HMRC need me to do to create my payroll?
There are several tasks you will need to complete in order to set up your PAYE with HMRC. These include:
- Register as an employer with HMRC and get a login for PAYE
- Choose payroll software to record employees’ details, calculate pay and deductions and report to
- Collect and keep records.
- Tell HMRC about your employees.
- Record pay, make deductions and report to HMRC on or before the first payday.
- Pay HMRC the tax and National Insurance you owe.
If you choose to use PKB’s payroll service, we will take care of all these tasks for you.
Why should I outsource my payroll?
If you’d like to have more time and freedom to focus on building your business, why not outsource your payroll? Outsourcing to a professional accountancy team gives you the reassurance that it’s being done to HMRC’s latest standards and that you’re not paying too much tax or National Insurance. It also gives you reassurance that your employees will be paid on time.
What’s included in the PKB payroll service?
Using our payroll services takes the pressure off you and allows you to focus your time on other important tasks such as developing your business.
We provide payroll services for small businesses, medium-sized enterprises and larger organisations. This includes:
- Weekly, fortnightly or monthly payroll processing (including RTI submission)
- Provision of payslips
- Gross to net summary
- HMRC payment advice
- Preparation of end-of-year returns (this includes compulsory online filing)
- Preparation of forms P11d
- Calculation of any National Insurance liabilities
Unless you are a sole director of a limited company, you will need to comply with auto enrolment regulations.
We can assist with all the registration and processing in relation to auto enrolment and NEST pensions as an additional optional service.
Does payroll have to be monthly?
No, you can choose how often you run your business payroll. The PKB payroll service can run weekly, fortnightly or monthly. You can also choose how you pay your staff, whether it’s on an hourly rate or a yearly salary.
What about employee benefits?
Offering perks to your staff is a great way to attract good people to your business. But rewarding your team can come at a cost. The most attractive benefits are often taxable, meaning that your employees will have to pay towards them, and that you (as an employer) will incur some higher National Insurance costs.
We’ve created a helpful guide to this topic; Employees With Benefits.
Real Time Information (RTI) is designed to make PAYE submissions more efficient. You’ll need to submit information to HMRC in real time, every time you pay employees. If you decide to use PKB’s payroll services, we’ll do this for you.
What are the deadlines?
RTI submission should be made on or before the day payments to employees are made, with the latest deadline being no later than five days after a month-end.
Do I have to have a payroll?
Any business that has employees being paid above £115 per week* has to register and run a payroll.
*based on 2018/2019 tax legislation
Do I need payroll if the only person employed is me?
Yes and no.
Yes – if you are a sole director of a limited company, you still need to run a payroll for yourself as the only employee.
No – if you are a sole trader, you are not an employee of the business.
How can I find out more information about PKB’s payroll service?
We know there’s a lot to think about when deciding how to set up and run your payroll. If you’d like an experienced advisor, you’re very welcome to come and see us in our Crowthorne office for an informative — and obligation-free — chat. We’ll tell you if you would benefit from outsourcing your payroll to a professional team or whether it’s something you can do yourself.
PKB can offer payroll services for small businesses, larger organisations and everything in between. To find out more, simply contact us and a member of the team will be more than happy to help.
“Payroll is a crucial part of running a business and it’s important to get it done accurately and on time otherwise you’re left with a lot of unhappy employees. Payroll can be very time-consuming and what do you do if your payroll manager is sick or on holiday?”