Key tasks you must know about payroll reporting
A key part of the legal responsibilities employers must fulfil is the setting up and operation of a payroll system. This is not just so your staff can be paid on time but also so the relevant information can be reported to HMRC. Needless to say, the information given to HMRC regarding your payroll is crucial and must be correct. Any errors or late reporting could see you face further investigation or questions from the government.
If you have a company that employs staff or you are a director of a limited company that receives a salary, then you will need to register for payroll with HMRC. Here are some key points to think about when considering what is involved:
1. Calculating income tax and national insurance due on salaries
A vital point in your payroll duties is to calculate the income tax due on salaries paid by your company to your employees. Getting this calculated and reported correctly is not only key for ensuring you are passing the right details to HMRC but also so that the income tax your employees pay on their salaries is the correct amount.
2. Calculating national insurance due
In the same way, you will also need to work out the national insurance contribution each employee is due to pay to HMRC on their salary. As with the income tax amount that is due for each staff member, it is crucial to get this right to avoid any future problems.
3. Ensuring full compliance with HMRC regulations
Part of your company's payroll responsibilities is to ensure you fully comply with all the payroll regulations from HMRC. Take the time to read all the rules and tasks that need doing throughout the year, so you can report all relevant information as needed.
One important area here is the new Real Time Information (RTI) requirements. This dictates that all information needed by HMRC is given to them in real-time and before any payments are made to your employees.
Filling in all the paperwork to register for payroll and completing all the various weekly, monthly and annual report to HMRC can be very time-consuming. If you are based in Sussex and need accountants to take this complex task away from you, give us a call today. We will use our years of professional experience to meet all your payroll needs.
To discuss your payroll needs get in touch with our Business Services Partner Robert:
Tel: 01825 763366
The Chancellor announces the Autumn Statement. What does it mean for you?
The Chancellor Jeremy Hunt, has presented his Autumn Statement which he says is focused on growing the economy through reducing debt, cutting taxes and rewarding work. He stated that, ‘Our plan for the British economy is working, but the work is not done.’ This article will provide a summary of the measures announced. Do look out for a full report that will be sent to our newsletter subscribers in the coming days.
A guide to capital gains tax exemptions and the family home
A valuable relief exists on the sale of the family home, but in certain situations careful planning is required to ensure that the relief is obtained. The capital gains tax (CGT) exemption for gains made on the sale of your home is one of the most valuable reliefs from which many people benefit during their lifetime. In this article we look at the operation of the relief and consider factors that may cause it to be restricted.
Sign up to receive our private content
straight to your inbox