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Q1 When should I register as an Employer?
A. You should register as an employer once you start employing somebody; or have taken on sub contractors, and your employee already has another job; or their earnings are equal to or above the PAYE Threshold and are liable for deductions of tax; or their earnings are equal to or above the National Insurance lower earnings limit (LEL) ; or you have provided your employee with benefits in kind.
You can register up to four weeks in advance of your first payday. Yevs & Co can run your payroll for you and ensure you make the correct deductions as well as the correct payments to the Inland Revenue.
Q2 How should I Register?
A. The majority of new employers can apply to register by either: Sending an email (
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) or Calling 0121558 1326. Yevs & Co can run your payroll for you and ensure you make the correct deductions as well as the correct payments to the Inland Revenue.
Q3 Which Information will need to provide? A. You must have the information about your employees; general business information and informations about your payroll. Yevs & Co can run your payroll for you and ensure you make the correct deductions as well as the correct payments to the Inland Revenue.
Q4 How Does the PAYE Scheme Operate?
A. Upon registration the Inland Revenue will send you guidelines on operating PAYE, National Insurance, Statutory Sick Pay and Statutory Maternity Pay (employer’s pack). Included will be a number of forms with which to operate the PAYE and NIC system, which are as follows: - | p11 | Deduction working sheet.
| | p46 | Notification to the inland revenue where no code has been notified to the employer an application for coding.
| | p46(Car) | Notification of a car provided for the private use of an employee or a director.
| | p45 | Details of employee leaving.
| | p14/p60 | End of year return and employers certificate.
| | p35 | Employer's annual statement.
| | p38A | Employer's supplementary return.
| | p11D | Expenses and benefits.
| | p9D | Expense payments and income from which tax cannot be deducted.
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In order to calculate the amount of tax and national insurance due by an employee, the Inland Revenue will supply you with sets of tables. By reference to the “tax free” tables and an employee’s tax code you will be able to calculate the amount of salary that is not subject to tax. The difference between this figure and the gross amount is the employee’s taxable pay. This can then be calculated by reference to another set of tables. The employer’s and employee’s national insurance is calculated by reference to the gross pay with a third set of tables. Special rules exist for the calculation of national insurance for directors.
The tax and national insurance should be paid to the Inland Revenue by the 19th of the month following that in which the salaries were paid.
In most businesses, the directors, and often the employees, have benefits that are not immediately taxed through the PAYE system, the most usual being the provision of a car and possibly fuel. Class 1A national insurance contributions are due on the taxable value of these benefits in kind and are due on the 19 July following the fiscal year in which the benefits are made available.
In addition, the Inland Revenue requires on an annual basis, a form P11D (Return of expenses payments and benefits) for all directors irrespective of income and all employees receiving remuneration including the benefit in excess of £8,500. For those employees earning less than £8,500 but who receive expense payments and benefits, a form P9D is required.
A form P46(Car) needs to be completed quarterly on 5 July, 5 October, 5 January and 5 April if any employees have been provided with or have changed their company car. Further details are given on the taxation of company cars in Inland Revenue leaflets IR132 and IR133. The Inland Revenue will still require form P11D to be submitted annually in addition to the P46 (car) forms.
Q5 When should I Pay My Tax?
A. The following summarises some of the more significant fiiing dates for a corporate using a calendar year end. Many of these requirements also apply to partnerships and sole traders. Naturally, if a year end other than 31st December is used, some of these dates will vary. Annual Events | Date | Return | 19th May
| Submission of forms p35 and p14's | 6th July
| Submission of form p11D | 19th July
| Payment of Class 1A NIC | 30th September
| Payment of corporation tax (9 months after the end of the accoutning period) | November / December
| Year end tax planning | 31st December
| Submission of corporation tax return (12 months after the end of the accounting period) |
Monthly Events | Date | Return
| Monthly by the 19th
| Payment of payroll taxes (under certain circumstances - quarterly) |
Quarterly Events
| Date | Return
| 14th April
| | 14th July
| Forms CT61 to be submitted - tax deducted/received on interest payments | 14th October
| | 14th January
| | | Quarterly | VAT returns (although these can be monthly)
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Q6 How Long Am I Required By HM Revenue & Customs to Keep My Records before they are disposed of?
A. Five years and ten month after the tax year to which the records relates.
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