Pro-Taxman

Payroll Management – How To Handle Payroll Taxes

We’ve included useful tools and calculators, but most employers find it easiest to get professional payroll help. Your accountant can advise you on what system would suit you best and the services on offer.

Payroll tax and PAYE

Payroll taxes are generally collected through the PAYE (Pay As You Earn) system operated by employers. If you have employees, you’ll almost certainly be required to operate PAYE unless all your employees have low earnings, aren’t given any additional benefits or don’t have income from another job or pension.

This applies even if you have set up a company with yourself as the only employee. You do not have to collect payroll taxes through PAYE if you are self-employed and have no employees.

Payroll taxes handled through PAYE include income tax and National Insurance contributions deducted from employees’ pay and the employers’ National Insurance paid by the business. The PAYE system involves calculating and paying any payroll taxes due to HM Revenue & Customs (HMRC), generally on a monthly basis.

The way you report PAYE to HMRC changed in 2013. All businesses now report payroll information and send the tax and NI deducted electronically to HMRC every time an employee is paid – known as Real Time Information (RTI) – (instead of annually through form P46).

To do this you will either need to use RTI compatible software or outsource your payroll to a payroll bureau or your accountant. Alternatively, HMRC has produced basic PAYE tools and calculators which are suitable for small employers to use to fulfil their online filing requirements.

The RTI PAYE system is linked to employees’ benefit payments – now known as Universal Credit payments – to improve the accuracy rate of tax payments and benefits.

All UK businesses now have an online personal tax account. You can view your tax transactions across the range of business taxes including Self Assessment, Corporation Tax, VAT and PAYE for employers and to make payments at any time.

The PAYE system also covers the payroll taxes due on most employee benefits, such as expenses, health insurance and company cars. The main exception is any pension contributions the business makes into an approved pension scheme. There are no tax or National Insurance payroll taxes on the value of this benefit.

In most cases, the payroll tax for benefits is assessed and collected annually. The employer must also provide details to employees, who may need to declare benefits (and income) in their own self-assessment tax returns.

Operating the PAYE payroll tax system

Effective management of payroll taxes requires you to keep accurate records of employee details, pay and benefits. You need to calculate payroll tax deductions and make accurate, timely payments and provide payroll information to both employees and to HMRC. You also need to deal with complications such as statutory sick pay and student loan repayments.

Get Help From The Best Hounslow Accountants

At Pro-taxman, we offer expertise and knowledge like no other firm can. Our dedication to customer service has seen us earn a reputation as one of the most reliable accountants in Hounslow, growing our name organically via word-of-mouth advertising and referrals. We are frequently commended for our exceptional customer satisfaction ratings, ensuring that the needs of our customers are met fully.

Meeta Paranjape
Meeta Paranjape
1. February, 2021.
Professional yet friendly, very competent service. They have tirelessly answered my relentless questions and have helped me a great deal in setting up my small business and have also helped me in my personal tax returns. I would highly recommend Pro-taxman - at a reasonable fee you are guaranteed your peace of mind. Thank you very much, Pro-Taxman, I feel assured with you by my side 🙂
Arjun C
Arjun C
31. January, 2021.
Vikas took the time to explain everything clearly and I found his service to be reliable, honest and an overall good experience. Will continue to use in the future
Fameda Khan
Fameda Khan
26. January, 2021.
Excellent Service by PRO-TAXMAN. Very prompt and efficient. Good communication throughout the process. Definitely recommend.
Usman Jamil
Usman Jamil
23. January, 2021.
I needed someone who knew about property related tax and I had witnessed Vikas's knowledge on forums online so I got in touch to see if he could help. Vikas has helped me understand various different aspects of tax planning and I'm sure he will continue to be a integral part of my future ventures. I would highly recommend Vikas if your looking for a friendly knowledgeable account to help you with your company taxes.
ketan Gohil
ketan Gohil
9. January, 2021.
Vikas was really helpful throughout the process. Made it hassle free for us. Strongly recommend to use his accountancy services.
saksham anand
saksham anand
14. December, 2020.
Quick and Friendly. Highly recommended
bhaskar bhattacharjee
bhaskar bhattacharjee
9. December, 2020.
First time I used pro tax man in 2020. I have used several accountants in the past, but honestly Vikas and his team are real pro. All the best guys.
Anna Maria Deligkari
Anna Maria Deligkari
6. December, 2020.
I am extremely happy with the services of Pro-Taxman. He explained all the information and documents needed in a straight-forward way, was very quick in preparing my tax return, maintained excellent communication with me throughout the process and reached the best possible outcome I could imagine. Best value for money! Highly recommended!
Jade Smith
Jade Smith
3. December, 2020.
Competent, Reliable and experienced professional accountants that are there for you when you need them. A friendly service that gives you that personal touch. Saved me many times more in taxes than their fee. I highly recommend Pro-taxman for landlords and small businesses.
Prashant K
Prashant K
30. November, 2020.
I highly recommended Pro-Taxman , Excellent service,knowledgeable and solved my all queries and very reasonable charges ..

Need professional accounting service or accounting advice in Hounslow or anywhere in London? Contact us to book a 15-min Free Consultation with us today.

Spread the love

Leave a Comment

Your email address will not be published. Required fields are marked *