Payroll (PAYE)

When a limited company is incorporated, and has one employee or more, it must register for the Pay As You Earn (PAYE) scheme with HMRC.

To register for PAYE, you’ll first need to register your company . Only businesses that are registered with Companies House have the right to employ workers.
PAYE refers to the system whereby income tax and National Insurance (NI) contributions are deducted from an employee’s gross pay, the balance of which is the employee’s weekly (or monthly) net pay. The tax and NI contributions are then paid to HMRC. While other deductions may also be taken from an employee’s gross pay, such as pension contributions and child maintenance payments, these are not paid to HMRC.

121 Company Formation is an experienced accounting company that offers a comprehensive accountancy service including ensuring that you meet all your obligations as an employer.

WHAT ARE MY OBLIGATIONS AS AN EMPLOYER?

  • Register your company as an employer
  • Sign into online business account to choose PAYE for Employers
  • Select your business structure, Limited Company, Sole Trader, Partnership
  • Enter your company's tax reference number (UTR)
  • Enter you employees' first pay day
  • Complete Employer's registration form and submit application

Payroll & PAYE

Purchase this service to:

  • Have 121 Company Formation seamlessly manage your Payroll & PAYE services so you can focus on what matters most - growing your business.

Simply complete our brief questionnaire to get a quotation customized to your business needs

HOW DOES THE PAYE SCHEME WORK?

  1. Set up the company’s payroll either using 121 Company Formation’s accountancy service or by installing one of the commonly used payroll software packages
  2. Upon joining your employ, each employee will present you with a P45. The information contained on the P45 should be used to ensure that each employee’s income tax payments and NI contributions are correctly calculated. If an employee does not have P45, form P46 can be used instead
  3. Every week or month, depending on the frequency with which you pay your employees, each employee’s gross pay will be calculated from which taxes and NI contributions are deducted to arrive at their net (i.e. take home) pay
  4. All deductions made from an employee’s salary must be paid to HMRC. This is due by the 19th of the following month (22nd if submitted electronically). When a company’s payroll is very small, the HMRC payments may be made quarterly
  5. At the end of every tax year (5th April), you must provide each employee with a P60 which is a summary of their gross pay and all their payroll deductions. If any of your employees received taxable benefits throughout the year, you must also produce a P11 form for them
  6. When an employee leaves your employment, you are required to provide them with a P45. This will include such information as their tax code and pay to date. This will enable their new employer to calculate their payroll deductions correctly.

PURCHASE OUR SMALL BUSINESS PAYROLL & PAYE SERVICES

Each of our client’s requirements differ. Simply complete our brief questionnaire and we will provide you with a quotation customized to suit your business needs.
Purchase our company formation package and automatically qualify for a reduced-price accountancy package.
Please contact our customer services team either by calling +44 (0)203 8932 121, WhatsApp +44 (0) 798 4046 470 or sending an email to info@121companyformation.co.uk for further details.

HOW IT WORKS

  • To begin this procedure, we will send you an online PAYE application form that you’ll need to complete and return to us
  • After checking the form, we will submit it to HMRC on your behalf so that you become registered as an employer
  • You will receive a letter confirming that the registration has been successful and will be allocated a unique PAYE reference number

Ready to set up your company?

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