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