Newly start small business PAYE questions

tommy134 · 4 July 2009 at 12:04AM

Greetings,

I have registered a small company in April this year and have hired a guy to assist in business.

I want to open PAYE asap for proper payrolls and tax purposes. As my business has just got started (has not made any profit yet) and there is only one employee, I would like to do it by myself instead of getting an accountant.

After consulting some gurus on this forum a few days ago, I have registered with Inland Revenue and received the employer pack today. As I prefer filing PAYE online, I will register PAYE online tomorrow.

I assume it should be quite straightforward in my case, but I would really appreciate if you could give me some advice on what to do next - I'd like to start paying my employee at the end of July.

Thanks a million~!!!

Savvy_Sue · 4 July 2009 at 12:15AM

I always found it helped to read what they've sent. There was a very useful section on paying a new employee which I worked through so many times I practically knew it by heart, BUT I still got it out and checked it every time, just in case.

It tells you how to work out what tax code to use, depending on whether the new employee has given you a P45 or a P46, and how to work out how much tax and NI to deduct, and how to record it - everything really!

tommy134 · 4 July 2009 at 1:22PM

Hello Savvy_Sue,

Could you give me an idea how long this PAYE DIY is going to take for a first time user?

I have got my employee's P45 from his previous employment and some accounting basic knowledge. Just hope I can pay him on time!

Savvy_Sue · 4 July 2009 at 11:39PM

Not sure - no more than 30 minutes for a new starter, maybe 10 in subsequent months? I was paying up to 10 staff, entirely manually, and it never took that long, although it was essential to have coffee and no interruptions while I did it ...

tommy134 · 5 July 2009 at 7:05PM

:T Thanks Savvy_Sue, I will manage to get a coffee and sit down for an undisturbed 30 min!

Btw, can I print out payslips directly from the CD?

Savvy_Sue · 5 July 2009 at 11:56PM

tommy134 wrote: »

:T Thanks Savvy_Sue, I will manage to get a coffee and sit down for an undisturbed 30 min!

Btw, can I print out payslips directly from the CD?

Not sure: I was doing this in pre-CD days! I used to use wages envelopes from WH Smiths and hand-write them. Someone has a template for payslips, if they don't pop up and offer it try a search of this board for that. I'd do it now but only have a few minutes here before DH boots me off ...

parapusher · 7 July 2009 at 11:41AM

tommy134 wrote: »

:T Thanks Savvy_Sue, I will manage to get a coffee and sit down for an undisturbed 30 min!

Btw, can I print out payslips directly from the CD?

Hi Tommy

The CD doesn't print out wage slips. I print out a template in Excel and write the figures in by hand. I do the payrolls for two disabled people who employ personal assistants. I was a total novice at payroll, and have just followed what it says on the CD. At the end of the year, if you are worried the Inland revenue hold 'open days' locally, when you can go along and ask questions. I went the first year, as I didn't have the CD that year, having taken over the payroll from a payroll service at month 11 - they were hopeless, and I decided I could do it better myself.

Hope this helps

Newly start small business PAYE questions

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