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