Whether you employ one person or one thousand you are legally required to register with HMRC as an employer and operate a PAYE scheme on your employee’s behalf. The big question is, what is the most cost effective and reliable way to do this?
Managing payroll yourself can initially seem a cost effective method but you do need to ask yourself; do you have a really good working knowledge of the tax system and all the statutory payments like Maternity and Paternity pay? Your time is probably far better spent growing your business. With the imminent introduction of RTI (Real Time Information), requiring companies to send information to the HMRC every time they pay their employees, payroll is only going to get more complicated and time consuming.
Employing a payroll clerk, even part time, is expensive and of course you still need to cover holidays and any sickness absence.
Deducting incorrect amounts can lead to tribunal claims for unlawful deduction from wages, and wrong tax and National Insurance deductions can send HMRC inspectors hurrying to your door.
The simple solution is to hand over the whole problem to Payroll Services. For a low cost fixed monthly fee all your statutory obligations are taken care of by our payroll professionals and your employees will be paid properly every month.
If you would like a quote for the cost effective management of your payroll contact us.