PAYE & AUTO ENROLMENT
As an employer, you normally have to operate PAYE as part of your payroll. PAYE (Pay As You Earn) is HM Revenue and Customs’ (HMRC) system to pay income tax and National Insurance contributions.
Your employer deducts tax and national insurance contributions from your wages or occupational pension before paying you your wages or pension.
You only need to register for PAYE if your employees are paid £116 or more a week, have another job, get a pension, or they get expenses and benefits. You don’t need to register for PAYE. However, you must keep payroll records.
So, as an employee you will need to deduct tax and National Insurance for most employees from these payments. Other deductions you may need to make include student loan repayments or pension contributions.
After deducting Tax and NI, you’ll need to report your employees’ payments and deductions to HMRC on or before each payroll.
Your payroll software will work out how much tax and National Insurance you owe, including an employer’s National Insurance contribution on each employee’s earnings above £162 a week.
You’ll need to send another report to claim any reduction on what you owe HMRC, for example for statutory pay.
Based on your reports, you will be able to view what you owe HMRC, so you can pay them usually every month.
If you’re a small employer that expects to pay less than £1,500 a month, you can arrange to pay quarterly - contact HMRC’s payment enquiry helpline.
As part of your regular reports, you should inform HMRC when a new employee joins and if an employee’s circumstances change, for example they reach State Pension age or become a director.
You have to run annual reports at the end of the tax year including telling HMRC about any expenses or benefits.
By law, every employer with at least one member of staff has duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it.
This is called 'automatic enrolment' because it is automatic for staff – they don't have to do anything to be enrolled into a pension scheme, but it is not automatic for employers. From the date the employers are automatically enrolled they’ll have a month to choose not to join, or ‘opt out’. If they do nothing they’ll be enrolled in the scheme. They’ll make contributions to their retirement pot from their pay for as long as they’re employed or until they take their money out.
All employers that have at least one member of staff, automatic enrolment applies to them.
It is important for us to provide best services to our client by helping them with the automatic enrolment.
From 1 October 2017, if you are a new employer, automatic enrolment duties apply from the day you have a new member of staff started working for them.
All employers should nominate an employer contact who will receive important information from us. You may want to nominate us as an additional contact.
If you nominate us as an additional contact, we'll receive regular emails about the updates of your automatic enrolment duties.