| When should an Employer Register for PAYE | | | | |
| | | | Employees must be paid the national minimum |
| Employers should register as soon as possible | | | | wage which for adults was raised on the 1st |
| when a qualifying employee is appointed and | | | | October 2007 to £5.52 per hour. Every |
| may register up to four weeks prior to the | | | | employee must receive a payslip that shows |
| first employees pay day. | | | | the amount of income tax and national |
| | | | insurance deducted from the gross pay. In |
| You should register as an employer and | | | | addition every employer must also calculate |
| operate a PAYE system if your employee | | | | the employer's national insurance |
| already has other employment, or if the | | | | contribution. If you are an employer and not |
| employee's earnings are equal to or above the | | | | operating a payroll software system such as |
| PAYE threshold. The PAYE threshold for | | | | the DIY Accounting Payroll Software then you |
| 2007-08 is earnings of £100 per week or | | | | must design a payslip to give to your |
| £435 per month at which point income tax | | | | employees to satisfy legal requirements. |
| and national insurance deductions may be | | | | |
| required. These limits include the value of | | | | HMCE Payroll Forms |
| any benefits in kind that may be paid. | | | | |
| | | | P11 Employees Deductions Working Sheet |
| Employer Registration Information Required | | | | |
| | | | The working paper is a record of the weekly |
| Generally the information to be provided | | | | or monthly pay for each employee and the |
| includes the business name, trading address, | | | | income tax and national insurance deductions. |
| type of business, name and address of the | | | | |
| employer, national insurance number and tax | | | | P14 End of Year Employees Deductions Summary |
| office reference of the employer, contact | | | | |
| telephone number and email address if | | | | Summary of the employee income tax and |
| applying by email., | | | | national insurance deductions recorded on the |
| | | | P11 deductions working sheet |
| In addition details will be required of the | | | | |
| likely number of employees, frequency of | | | | P35 Annual Employers Return |
| payment, the date the first employee was | | | | |
| appointed and the first payment date. Also | | | | Summary detailed by employee of the annual |
| have available the address where the payroll | | | | totals of income tax and employee's national |
| records will be kept and the contact details | | | | insurance deductions and employers national |
| of the person responsible for the payroll. | | | | insurance liability |
| | | | |
| Where partners are involved details of each | | | | P45 Details of Employee Leaving |
| partner's names, addresses, national | | | | |
| insurance numbers and tax office references | | | | Only available from the Employer's helpline |
| will be required and the LLP number for | | | | the P45 is a certificate of the amount paid |
| Limited Liability Partnerships. | | | | to the employee and the income tax deducted |
| | | | during that employment. Every employee that |
| Limited Companies will be required to supply | | | | leaves the employers employment should be |
| the address of the company's registered | | | | issued with a P45. |
| office, date of incorporation and company | | | | |
| registration number plus details of the | | | | P60 End of Year Employees Certificate |
| directors; names, addresses, contact | | | | |
| telephone numbers, national insurance | | | | The P60 is a certificate of an employees |
| numbers, tax office references | | | | total earnings and total income tax deducted |
| | | | during the tax year including previous those |
| How to register as a PAYE Employer | | | | of previous employers and also the amount of |
| | | | national insurance deducted by the current |
| Employers can register for PAYE online at the | | | | employer and should be issued to every |
| HMCE website. Click Employers - Register as | | | | employee the employer has at the 5th April |
| an Employer - First steps as an Employer - | | | | each year. |
| scroll down the page until you can click | | | | |
| email which then presents you with online | | | | Each of these HMCE PAYE forms are |
| registration form to complete and send. | | | | automatically completed by the DIY Accounting |
| Alternatively contact HMCE Employer Helpline | | | | payroll software which produces excel copies |
| at 0845 6070 143. | | | | of the HMCE forms making the package highly |
| | | | suitable for both inexperienced employers and |
| PAYE and Payroll Records | | | | those wishing to minimise the administrative |
| | | | burden payroll can place on an employer. |
| Accurate payroll records are essential, full | | | | |
| stop. Employers must keep payroll records for | | | | PAYE Payments and Online Bonuses |
| both HMCE purposes and employees. The | | | | |
| employee records must include the name and | | | | Deductions of income tax, employees national |
| address of the employee, national insurance | | | | insurance and employers national insurance |
| number, date of birth, income tax code, all | | | | must be paid to HMCE each month, the standard |
| payments and benefits made and all deductions | | | | final payment date being the 19th of the |
| for income tax, national insurance and | | | | month following the payroll month. |
| voluntary deductions. | | | | |
| | | | If monthly payments of income tax and |
| When registering to operate a PAYE system | | | | national insurance deductions including |
| immediate arrangements should be made to | | | | employer's national insurance are under |
| ensure these records are maintained either by | | | | £1,500 per month then employers have the |
| setting up the records yourself using the | | | | option to pay the amount due to the HMCE on a |
| help and advice contained in the Revenue | | | | quarterly rather than a monthly basis. |
| CD-ROM provided to all new and existing | | | | |
| employers or employing a payroll service to | | | | Payments of income tax and national insurance |
| produce the records or using a payroll | | | | to the HMCE can be made online |
| software package. | | | | electronically. At the end of each financial |
| | | | year, 5th April, every employer must submit |
| Various payroll software packages are | | | | the P35 Annual Employers Return .to HMCE |
| available with different degrees of | | | | detailing the amounts paid to each employee |
| complexity. The DIY Accounting Payroll | | | | and the deductions made for income tax, |
| Software is an ideal solution for small | | | | employees national insurance and employers |
| employers being written on excel spreadsheets | | | | national insurance with the amount that has |
| and in addition to producing the deduction | | | | already been paid to HMCE in respect of the |
| calculations and payslips the payroll | | | | income tax and national insurance |
| software also automatically completes an | | | | contributions. Employers with less than 50 |
| excel copy of the compulsory HMCE forms | | | | employees are eligible for a tax free online |
| significantly easing the administrative | | | | bonus when the P35 Employers Annual Return is |
| burden. | | | | submitted online which has been a tax free |
| | | | £250 and £150 in recent years. |
| Paying Employees | | | | |