A quick-start guide to PAYE

If your business employs staff, one of your key obligations will be to run payroll. A major part of this process is dealing with pay as you earn (PAYE). This guide covers the basics of PAYE and has information on what you need to do if you’re taking on new staff. There’s also details on how and why Real Time Information (RTI) makes PAYE submissions more efficient and how payroll software can help you stay on top of everything. The quick start guide to PAYE will provide you with advice on:

• PAYE basics
• Taking on new employees
• Real Time Information (RTI)
• Deducting income tax and National Insurance contributions
• End of year employer tasks

There’s also a payroll calendar for the year, highlighting key dates that your business needs to be aware of, such as the start of the new tax year and when you need to get those P60s to your staff.

An excerpt from The quick start guide to PAYE

Taking on new employees

You need to register with HMRC any employee paid more than £118 a week or those receiving any expenses or benefits (e.g. a company car). You must also register employees who have another job or receive a pension. The same rules apply even if you’re the only employee of your own limited company. When you take on a new employee, you must maintain records, including pay they’ve received during the current tax year and the tax code used to work out how much income tax and National Insurance to deduct from their earnings. You can usually find the information you need on an employee’s P45 from their previous job.