| We can help you with Payroll |
 Payroll accounting is quite different from general financial accounting and VAT because of all the HMRC rules for PAYE and the weekly or monthly deadline to get the wages paid. So accounting systems for payroll have developed separately from other products, for example Simplex publish a separate wages book for manual entry, but the complexity of income tax accounting requires something better. Outsourced payroll services are often specialists in that branch alone, because some rather specialised knowledge is needed to manage payroll quickly and accurately.
We can install the necessary accounting arrangements for your small business. Employees wages and tax deductions are accounted for and wage slips issued on the due date, but we would not be responsible for handling your cash. Any new employee must have his personal tax record and his NI number integrated into your payroll records after he hands over a P45 issued by a previous employer so that when his gross pay for the week or month is calculated the amount of taxable pay is worked out by consulting the PAYE tax tables, taking into account the employee’s tax code defining his tax free allowance.  Then the tax due for this pay period, summed with any other deductions such as NI is subtracted from gross pay to determine nett pay. Now a wage slip must be printed, possibly a BACS bank transfer arranged, and all pay records stored so that at the close of the tax year on 5th April a P60 can be issued to show the employee’s pay and tax for the year. If an employee leaves, his tax record must be conveyed to his next employer by a P45 which you must prepare. The total tax and NI deducted must be accounted for and remitted to HMRC with more forms… and Statutory Sick Pay and maternity pay issues may arise. You must also take responsibility for any employee's and/or director's expenses and benefits which must go through the payroll account. It is a lot of work to do for each employee and you may wish you could get on with making the business prosper. We will make sure you get any HMRC bonus payment for submitting payroll returns early. This is better than incurring late penalties which knock a hole in your hard-earned profiits. But we can manage your payroll for you. |