Manage Your PAYE & NI

Why pay more tax and NI contributions than you need to? We can help you to minimise your liabilities, while ensuring that you comply with your obligations. Just view our PAYE and NI guides to find out more.

 

Real Time Information

Starting in April 2013, Real Time Information (RTI) is a new system being introduced by HM Revenue & Customs (HMRC) for the reporting of payroll information, which will effectively require employers and pension providers to provide detailed information to HMRC every time employees are paid rather than through the year end return. It’s the biggest overhaul to the PAYE system since its introduction in 1944 and will affect a large number of businesses.

Foreign workers

Anyone who employs an individual in the UK is required to make sure that the individual is entitled to work in the UK, and is not subject to any immigration control.

Employing your spouse

When considering the overall tax position of your family, it is worth considering if you can justify employing your spouse in your business.

Late payment of PAYE

Employers need to be aware of PAYE late payment penalties. Businesses are being reminded that they may face a penalty charge if they are late in paying their PAYE deductions in full.

Late returns penalties

Forms P14, P35, P38 and P38A – These forms are due to be filed by 19 May each year. If not filed on time a fine of up to £1,200 per 50 employees. This penalty may be reduced dependent on the circumstances.

Dont pay too much national insurance

If you have income from more than one job, or if you have self employment income as well as being employed, you should take care to ensure that you do not pay more in national insurance contributions than you need to.

National insurance planning

Details of class 1, class 1A, dividends instead of salary and action to save NICs.

Getting a P11D dispensation

Completing and submitting forms P11D can be both costly and time consuming, especially for larger businesses. Did you know that the Revenue might on application grant a dispensation so that routine expense payments and benefits that would not give rise to a tax liability need not be reported on forms P11D?

Benefits in kind and expenses payments

Benefits in kind are assessed on all directors and employees whose salary and benefits combined are £8,500 or more. Remuneration by way of benefits is often attractive to employees, especially if they are paying the higher rate of income tax, because the benefit may either be tax free or subject to less tax.

How to survive a PAYE and NIC inspection

However confident you are that your records are complete and well maintained, a PAYE / NIC inspection might still catch you unawares. Here are some pointers to help you.

Employing workers from the A8 EU member states

Anyone who employs an individual in the UK is required to make sure that the individual is entitled to work in the UK, and is not subject to any immigration control.

Child Tax Credit and Working Tax Credit

These tax credits replaced Working Families’ Tax Credit, Disabled Person’s Tax Credit and Children’s Tax Credit and the child-related elements of Income Support and Jobseeker’s Allowance. These operate until 2014 for existing claimants.

Employed or self employed?

The question as to whether someone is employed or self employed is not as straightforward as it might at first appear. Many people assume they are free to choose, but HM Revenue & Customs emphasise that this is not the case.

Tax and employment

Many people can go for years paying too much (or, perhaps more worryingly, too little) tax. It is important to know exactly how much you are paying or you could face repercussions later.

Employee share schemes

Employee share schemes, such as share incentive plans (SIPs) and Save As You Earn (SAYE) schemes, are increasingly being used by firms to reward good staff performance and retain workers, and make an attractive remuneration package when recruiting.