If you are a Pay As You Earn (PAYE) operating employer, it is your duty to complete the following tasks every time you pay your employees:
- Record their pay,
- Calculate deductions from their pay,
- Calculate the employer’s NI contribution,
- Produce payslips,
- Report their pay and deductions to HMRC (FPS).
Tax months run from the 6th of one month to the 5th of the next. HMRC will send you a late filing notice if you have paid any employees and do not send an FPS or send it late. Be aware late, missing or incorrect payroll reports can also affect your employees’ income-related benefits, such as Universal Credit.
Your own dedicated accountants and tax agents are here to help
We can organise all your business information, including your payroll and workplace pensions, in one handy place: Xero Payroll! We collect your payroll data, produce your payslips and payroll reports. We send your submissions (FPS/EPS) including your pensions filing. Needless to say the PAYE forms (P45, P60, P11D) are also covered by this service.
The latest features of Xero (Covid-19)
New furlough and updated statutory sick pay functionality in Xero Payroll means your staff can be paid during these challenging times, in line with recent government legislation.
Record furloughed staff:
The Coronavirus Job Retention Scheme helps employers to pay their employees at least 80% of their regular wages up to £2,500 even if the business is unable to operate. This means staff are kept on your payroll, but as furloughed employees.
Changes to statutory sick pay:
The "COVID-19 self isolation" has been added as a sick leave option for employees who are required to self-isolate, so they can earn sick pay from day one instead of the usual four consecutive days.
Benefits of Outsourcing Accounting and Payroll
Time is everything and everything takes time. Accounting and payroll are no different. Saving you time is one of the most obvious advantages of outsourcing. A good accountant would have the ability to provide quality accounting information quickly and efficiently enough to allow you to make right business decisions at the right time.
Reduce overhead expenses
Employee hours, paid time off, sick leave, taxes, insurance, pension, it all adds up. Outsourcing saves you money in the long run by paying a fixed amount for the services offered. Every pound counts.
Improve data security
Most providers have already invested the money into highly secured servers using the best encryption technology. The amount of money you would have to invest in such technology alone is likely to exceed what you would pay for the outsourcing service itself.
Make better decisions
It can be very difficult to make quick decisions while balancing the multitude of changing accounting policies (and the treatment of such changes), technologies, etc. After all, if you are paying money to work with experts, they will have the right information you need. This information will allow you to continue to make decisions to grow your business with peace of mind.
We all have our strengths and weaknesses. Outsourcing allows you to focus limited resources on your business so you can be more profitable. You will be able to spend more time with your customers and offer them a higher level of service.
When you outsource accounting, you are counting on the fact that they are experts and they understand the complexities of regulations, compliance and taxes. Did you know that accountancy service providers, such as bookkeepers, accountants, tax advisers, payroll agents are regulated under the Money Laundering Regulations and they must abide by the code of professional ethics set by their institute?
In addition to these, outsourcing will give you access to other services (i.e. budgeting and forecasting) along with the traditional services (i.e. statutory accounts and company tax return). Another important thing to keep in mind is the amount of information and insight you might receive. A professional accountant with the right experience, will have the big picture in mind. This information, along with the advanced technologies can help you obtain personalised reports giving you the insight you need to further your business.
Coronavirus Updates and Guidance (COVID-19)
Coronavirus Job Retention Scheme
You can claim for 80% of your employee’s wages plus any employer National Insurance and pension contributions, if you have put them on furlough because of coronavirus (COVID-19). Check if you can claim.
The Coronavirus Statutory Sick Pay Rebate Scheme
Check here if you can claim back Statutory Sick Pay paid to employees due to coronavirus (COVID-19).
Reimbursed Expenses for Home Office Equipment
To support businesses and their employees working at home during the COVID-19 pandemic, the government has introduced a temporary new exemption on income tax and National Insurance Contributions (NICs) linked to the reimbursement of expenses linked to the purchase of home office equipment.
This is a regulatory change under section 210, ITEPA 2003 and section 3(2) and (3) Social Security and Benefits Act 1992 and will make it easier for employees to remain productive while working at home without incurring a liability to income and NICs. An exemption will apply where reimbursements are made by an employer who instructs or allows an employee to buy home office equipment to support them in working at home during the COVID-19 pandemic. This new exemption does not replace the current exemptions at section 316 ITEPA 2003 that applies to equipment provided directly by an employer.
We offer a wide range of accounting services that can be tailored to your requirements, from bookkeeping to tax advice. Get in touch to find out how our highly experienced accountants can assist you and provide you with ongoing support.
We take care of your payroll, so you get time back to focus on building your business.
We provide a full range of cost effective accounting and tax services. If you prefer to pay on a service-by-service basis, our rates range from £30 to £120 (plus VAT) per hour.
Our cost-effective monthly accounting packages and tax services are designed to help your business reach its full potential.
Need help with accounting and tax? Get your questions answered. Fill in the form and we will get back to you as soon as we can.
DISCLAIMER The information and opinions provided on this website are for general information purposes only and are not intended to constitute legal or professional advice.
Copyright © Ashkenazi & Co. | All Rights Reserved