Payroll

Payroll

If you’re starting a new business, or you are already running a business, then even if you don’t have any employees, then there’ll at least be you! Often directors of new businesses forget that they too, legally, are an employee of the business and take money from the company’s account – forgetting that income tax and national insurance is due on any salary payments from a company to its employees or directors.

Your company needs to be operating a payroll, and making monthly RTI (real-time) filings to HMRC whenever a salary payment is made.

In addition, you’ll need to deal with the basics like issuing payslips, making deductions from your employees for PAYE (income tax and national insurance), issuing P45s and such.

For an owner/director of a company, you’ll want to carefully manage your earnings from your company to ensure that you pay the minimum overall amount of tax. Depending on the business and its profits, a mix of salary and dividends may be more appropriate than a salary alone.

Robinson Price is happy to advise on the best way of remunerating you and your employees in a tax-efficient way and can help you with the HMRC reporting.