The term ‘payroll’ is used to describe the practices surrounding the entirety of payments made by a company to their employees, which include the following:
All employers need to make sure that they pay their employees the right amount at the right time and make the right deductions; as such, maintaining accurate payroll records is vital to the overall process.
As an employer, you also need to adhere to the Pay As You Earn (PAYE) system, which is the method of used by HMRC to collect Income Tax and National Insurance Contributions (NICs).
Established to guarantee that the exact amount of tax is paid at the correct time, HMRC is a non-ministerial department of the UK Government.
All companies with employees, including directors of a limited company are required to deduct Income Tax and National Insurance Contributions from their employees’ wages and be aware of the various rates, limits, and allowances in existence. Fines may apply for those who make incorrect or late payments.
By keeping track of your payroll needs, TWC will ensure that HMRC are kept up to date with the relevant information in real time. HMRC currently require nearly all employers to submit RTI forms online, which means that filing and maintaining records electronically has numerous advantages over filing on paper.
