Outsource your payroll

with expert accountants based in London

Availing a bookkeeping service allows business owners to focus on evolving their business, after all what makes a business successful is the ability to make strategic decisions based on factual knowledge.

However, if those decisions are not made in time or are based on incorrect data, there can be serious consequences.

At Evotax, we use state of the art softwares that make our bookkeeping ultra-fast and extremely efficient so that no opportunity is missed in making your business a success.

payroll services in london

FAQ about payroll services

Payroll is required in every business. It is the process of paying your employees by deducting tax on behalf of HMRC.

Payroll tax works through the PAYE system. This system makes the employer responsible for working out how much tax your employee owes, reduce it from the pay and pass it over to HMRC.

As soon as you hire your first employee, you will have to register for Payroll or better known as PAYE.

Each time you make a payment to your employee, you must record their pay, perform computations for deductions and NI contributions. All this will then have to be neatly recorded in a payslip which you will hand over to your employee. This will also have to be reported to HMRC in a document called Full payment submissions (FPS).

All of this seems daunting and extremely time-consuming. We want you to focus on what you do best and let our experts take control.

  • Send a PAYE application online – Once registered, you should receive your PAYE number in about five working days.
  • Request employees tax code & NI – This is usually found on their previous payslips, P60 or P45.
  • Request P45 from the previous employer – This will help you understand how much tax was paid in the tax year, and will help you apply the correct tax code.

We can set this all up for your using our state-of-the-art software.

We will make sure all your employees get paid on time by following the reporting requirements.

We will ensure:

  • We record each employee’s salary
  • Calculate deductions from their pay. These are generally tax and NI.
  • Compute NI contributions
  • Produce Payslips
  • Send reports to HMRC in accordance with full payment submission regulations (FPS)

Generally, employees are paid on a monthly or weekly basis. After you have paid your employees their net salary (deducting Income Tax & National Insurance Contributions), the amount that is due to HMRC is held in your account as a liability and needs to be paid through the online portal.

You need to ensure that you make a payment to HMRC by the 19th of the following month. If you miss this deadline, without any reasoning, you will get penalised and, therefore, will incur heavy fines.

As you require a workforce to drive your business, without employees, your business will struggle. For this reason, it is essential that employees get paid regularly and on time. This will not only build trust, but you will also have loyal employees who will stay with you for years to come. To achieve this, you must create a payroll schedule. However, before you make a schedule, consider the following:

Cost

Payroll is generally outsourced to accountants. It requires a knowledge of up-to-date tax regulations, and is time-consuming, without the proper software and experts in place. Depending on the frequency of payments each month per client, you need to consider how much you are willing to spend.

Generally, the charges are incurred when an employee is paid. Therefore, the more times they are paid in a month, the more the charges.

We here at EvoTax have very reasonable prices per transaction, and therefore if you wish to pay your employees more than once per month, you won’t be left disappointed with the cost as most accountants would charge you. Please call us to discuss this further.

After you have registered with HMRC as an employer on to their PAYE system, you will need to go through the following checklist to make sure you have all the details necessary to correctly register each employee.

1. Personal Details

Personal details are generally classified as their Name, address, gender & Date of birth. You can get this information either by requesting it from the employee, your HR department, or via P45.

2. National Insurance Number

This number is given to all UK citizens after the age of 16. You would need this number to successfully have them registered to the PAYE system. You can get this information either by requesting it from the employee, your HR department, or via P45.

3. Start Date

You must have the start date recorded on to the system, as this will mark the Date from which the employee will be expecting payment and HMRC. This can be requested from your HR department or via P45.

4. Tax Code

Tax codes help identify each employee’s taxable bracket as set by HMRC. Therefore, determines the amount of tax that will have to be deducted from employees pay. This can be found via a P45 or through your HR department.

5. National Insurance Category

As the name suggests, it helps identify which category the employee needs to be in. This determines amount of NI that needs to be deducted from the employees’ pay and the amount you as an employer need to contribute towards NI. To find the full list of NI categories, please refer to GOV.UK.

6. Student loan

The amount leftover from last 6th of April will need to be recorded when registering your employee, which can be found on the P45. To understand the exact amount of student loan that needs to be deducted, please head over to GOV.UK.

7. Normal Weekly Hours Worked

This should be pretty straightforward, as this would be stated on the employment contract.

8. Payment

Payment here refers to how frequently you are willing to pay your employee. This will be decided by you while hiring the employee and considering the Cost factor regarding employee payments, which has been discussed in the earlier question. Again, this will be stated in the employment contract.

As you can see this is admin heavy and requires a lot of time and expertise. Why not call us to discuss your requirements further and see how we can help.

We will make sure all your employees get paid on time by following the reporting requirements.

We will ensure:

  • We record each employee’s salary
  • Calculate deductions from their pay. These are generally tax and NI.
  • Compute NI contributions
  • Produce Payslips
  • Send reports to HMRC in accordance with full payment submission regulations (FPS)

Get in touch for a free consultation