This form contains most of the information you will need for payroll & CIS. Simply click on the "+" symbol to the left of each section. This will expand it and give you further detail.
New Start Employees
Regular Payroll Data
- If your employee is not paid a fixed payment per pay period but rather is paid hours x pay rate, please provide the hours.
- If there are any changes to the employees pay rate (including statutory ones when the National Minimum Wage increases, please notify us of this.)
- If the employee has 2 pay rates i.e standard rate and overtime rate, please advise us of any changes to either.
- As employer you (and not us) must keep relevant records.
- These records would be accrued holiday pay (holidays earned) and holiday pay given. Alternatively, this could also be days earned versus days taken.
When you require an employee to be paid holiday pay;
- Each time an employee is to be paid holiday pay please tell us either hours x pay rate or the total holiday pay to be entered. Telling us "please pay x days holiday" is not enough data for us to process, we need it in the prescribed format as mentioned.
- Please also provide the dates of the employees holidays.
If you are not already keeping records on holidays earned and holidays paid, you must undertake this. if you need guidance on how to do this, please let us know and we will be happy to provide a relevant spreadsheet.
Statutory Sick Pay (SSP)
- Please details the dates that SSP should be paid from and to (both dates inclusive).
- We need to know whether the Statutory Sick Pay amount is to be applied or an enhanced rate (as decided by you).
Maternity & Paternity Pay
- Please provide any detail on employees paid any of these amounts. We need to know the day from and the day to (both dates inclusive).
- When employee leaves, we need to know the last day they worked. If they are being given "pay in lieu of notice" we need to know what date the last day of that notice period is.
- If you have a leaver in the pay period, we require to know their final regular pay data.
- Leavers are entitled to any untaken holidays they have earned. Please provide us with the balance of this. (i.e x days at x per day, or perhaps the total amount to be paid to them) or perhaps holidays earned less holidays taken.
Salary Versus Dividend
- A sole owner/director is not legally bound to receive any remuneration at all.
- A director will normally take salary to reflect paid work done
- A director/shareholder will take dividends - to reflect the return on investment in the company.
- The tax-free allowance (£12K in 19/20) is taken via payroll. This keep Ni contributions up to date.
- Extra amounts are taken (as a directors loan) and will then be offset to a "dividend declaration".
Although payslips are produced during the year, some Directors opt to not pay this exact amount every month but rather draw monies when required.
This is fine, at year end we add up all the directors’ drawings, deduct the gross pay (from the payslips), the rest is then declared as dividend.
- No National Insurance is deducted until your total gross pay reaches the Ni thresholds. This happens in December till March for most directors ensuring that their National Insurance contributions are kept up to date each tax year.
- This is why National Insurance contributions can be Nil till November and then suddenly rise for Dec-Mar.
Regular Data Required
- Each time you pay a CIS sub-contractor, please provide the Gross amount (before CIS deductions) you paid them. Our payslips will then advise the Net amount (after CIS deductions) to pay them.
What We Will Supply To You
- Payslips will be sent to you in PDF format. We can provide either an individual PDF for each payslip or all payslips on a single PDF. Just let us know which you prefer.
- When you receive the payslips, simple print them out and give to each employee (or if individual PDF's are supplied you can forward each one to the relevant employee).
RTI stand for "Real Time Information" i.e HMRC is updated in "Real Time" each time a payroll is run.
We profide a PDF RTI report each time a payroll is run.
The report give you an overview of your payroll and will also tell you:
- What to pay HMRC
- What to pay your auto-enrollment pension provider.
Auto-Enrollment Pension Report
Each time we undertake a payroll we will provide an auto-enrollment payment report to you (if relevant).
This report will tell you;
- The amount of employee payroll deductions
- The amount of employer payroll deductions
- The total amount due to the pension provider.
P60 / P45
If and when relevant these will be supplied to you. It is the legal responsibility of the employer to provide an employee with these at the appropriate time.
CIS Statements & CIS 300
For each sub-contractor you engage under the CIS scheme, we will provide a CIS payslip. We will also complete the monthly CIS300 return to HMRC. A PDF copy will be emailed to you.
How To Pay HMRC Your Payroll Taxes
Important Fraud Warning
- Please be aware that there are many scams that are being run everyday in an attempt to obtain your bank details. These could be tax demands, threatening messages and even tax rebate notices. Scammers use SMS test messages (HMRC do not use these) as well as email (HMRC do not use this either).
- Make it a habit to ignore ALL messages purporting to be from HMRC on SMS and email. Any paper letters are far more authentic and less likely to be used by scammers.
- Never click on a link provided by anyone (including us!). Links to webpages can bear one address but subvert you to another "look-a-like" website. Messages can be intercepted too, your best defense is to manually type in a web address into the browser.
Paying PAYE That Is Due
PAYE is made up of ;
- Employees tax deductions & Ni deductions
- Employers Ni
To pay the amount of PAYE due to HMRC each pay period you will need;
- The RTi report we provide you each pay period
- A bank card
- Go to https://www.gov.uk/pay-tax-debit-credit-card
- Click "Start Now" then select "Employers PAYE and National Insurance"
- Click "Employers PAYE and National Insurance"
You will now be required to enter in the following 2 pieces of information;
Accounts Office Reference
- This is on the email we send you with the RTi report. (i.e 123PA01234567)
What Period Are Your Paying PAYE For?
- Payroll periods run from the 6th of one month to the 5th of the following month.
- By default the top 2 lines will be the last 2 payroll months. Pick the one that relates to your payroll. See the next section called "PAYE Periods" for more guidance on this.
# Do not be tempted to pick the wrong one, it will cause so many problems! If you are paying multiple payroll periods do them one at a time and pay each one separately using the "Another Month" option.
When you use the HMRC Online Payment facility to pay Employers PAYE And National Insurance it will ask you to select "What Period Are You Paying PAYE For?"
For Monthly Payrolls;
- Apr - Select 6 Apr to 5 May
- May - Select 6 May to 5 Jun
- Jun - Select 6 Jun to 5 Jul
- Jul - Select 6 Jul to 5 Aug
- Aug - Select 6 Aug to 5 Sep
- Sep - Select 6 Sep to 5 Oct
- Oct - Select 6 Oct to 5 Nov
- Nov - Select 6 Nov to 5 Dec
- Dec - Select 6 Dec to 5 Jan
- Jan - Select 6 Jan to 5 Feb
- Feb - Select 6 Feb to 5 Mar
- Mar - Select 6 Mar to 5 Apr
Tax Rates & Thresholds For 2019
National Minimum Wage
- The National Minimum Wage rates are published here: https://www.gov.uk/national-minimum-wage-rates
Income Tax Rates
- Income Tax rates are published here: https://www.gov.uk/income-tax-rates
National Insurance Rates
- National Insurance rates are published here: https://www.gov.uk/national-insurance-rates-letters
Frequently Asked Questions
National Insurance Threshold
- National Insurance kicks in once a certain threshold has been reached. For most directors, they experience a sharp rise in National Insurance around December. This continues until March at which point the new payroll year in April resets this to zero.
New Employees & Auto-Enrollment
- All employers are required to have an auto-enrollment scheme in place.
- Qualifying employers can opt-out of having a scheme in place.
- Qualifying employees must be "auto-enrolled" in a scheme (but can opt out).
#Therefore, all new employees who qualify to be auto-enrolled (various criteria they must meet, published on the governments website) must be "auto-enrolled". If they fill out and sign an "opt-out" form then they can opt-out, however the obligation is on the employer to have an auto-enrollment scheme in place and to auto-enroll each qualifying employee.