Advice on payslips

Murphy_The_Cat

Savvy_Sue wrote: »

You forgot to mention Statutory Sick Pay ... but I did include etc, etc :rotfl:

OK, I will admit that I never had to deal with maternity or paternity leave, and most of my staff were students so no need to worry about student loans, and it was before the days of salary sacrifice and childcare vouchers. Employee without P45 isn't a problem (give 'em a P46!)

It's finding a cost-effective balance. I didn't have a problem doing this weekly for 6 or so staff (and I had more than that on the books, just that I wasn't usually paying more than 6 in a given week). The instructions from HMRC were truly comprehensive, and the helpline was invariably helpful. BUT it did have to be done every week, and we were desperately short of money, and I was doing this as a volunteer so it didn't cost us anything.

The OP may need to consider paying someone NOT to do this in their spare time but on a commercial basis, if the person doing it in their spare time hasn't got enough of it!

As a rough guide, my accountants offer me a fully inclusive payroll service for 12 people, who are paid weekly & they charge me £90 + VAT a month, which to me, is absolute VFM :j.

As for the HMRC helpline being comprehensive, I've just been saddled with a bill from HMRC for doing something incorrectly, even though I followed the HMRC helpline instructions to the letter (I'd even phoned them back, spoke to someone else and got the same instructions). Always remember with HMRC, if a mistake is made, its your fault, even if you are doing what they told you to do.:mad:

jojogirly

hjb123 wrote: »

Is it PAYE that you complete for each worker?

Yes it is.

Thanks for all your replies. Getting into it now, It just seems so complicated when you first start.

greyteam1959

Yep Murphy the Cat has it on the button......pay your accountant to do it.
I pay mine a similar amount and I sleep easy at night !!!!!!!!!
Wait till your number comes up for a Compliance Visit and you will see how cheap your accountant is !!

robert_harper_2000

I use Sage Payroll and they also force you to take their support! Saying it is a legal requirement to take it, The software has been purchased but the support is around £120 per year I think... but if I do the payroll myself weekly it costs about 15 minutes printing out the forms but was told it would cost £30 for the accountant, is there cheaper?

greyteam1959

A legal requirement to use their support.......absolute rubbish
They are conning you !!!!!!!!!

stphnstevey

I am a Ltd but I am the only employee. I have just started and my accountant offered to do the PAYE for £70 + VAT. Although seeing someone gets 12 people's done for £90 + VAT, I don't know if that was such a good quote.

However the main reason I did it was for the accountants advice, not the actual mechanics of it. I also get paid by dividends and am not too sure what the best pay level vs dividends was for me.

I think I might take this task back off him after 12 months.

Strangely though I am NOT paying tax any tax or NI at the moment on a wage of £473???

My accountant says no tax as it is set off against the refunds due in the tax year (my tax code is increased as I do normally receive a tax refund for mileage)

No NI as you don't have to pay NI if your salary is under £500 month???

Murphy_The_Cat

stphnstevey wrote: »

I am a Ltd but I am the only employee. I have just started and my accountant offered to do the PAYE for £70 + VAT. Although seeing someone gets 12 people's done for £90 + VAT, I don't know if that was such a good quote.

However the main reason I did it was for the accountants advice, not the actual mechanics of it. I also get paid by dividends and am not too sure what the best pay level vs dividends was for me.

I think I might take this task back off him after 12 months.

Strangely though I am NOT paying tax any tax or NI at the moment on a wage of £473???

My accountant says no tax as it is set off against the refunds due in the tax year (my tax code is increased as I do normally receive a tax refund for mileage)

No NI as you don't have to pay NI if your salary is under £500 month???

if your accountant is doing it for £70 + vat for the year, you're OK. My AC charges me £90+ vat per month.

Without going into massive details about your salary/earnings, have a quick word with your ACC and ask him to ensure that you reach the NI threshold for getting NI credits.I'm not sure, but I THINK that £473pm may be leaving you a touch short.

stphnstevey

Looked again and its £453 a month

Worked out why as its just aove the limit to retain state pension benefits/contributions but under the threshold for income tax and NI payments needing to be made

Murphy_The_Cat

stphnstevey wrote: »

Looked again and its £453 a month

Worked out why as its just aove the limit to retain state pension benefits/contributions but under the threshold for income tax and NI payments needing to be made

I think that the threshold is just a few ££ more than that, it changed in the last Budget - for the sake of a memo/phonecall to the AC, it might save your pension contribution. IIRC, the new figure is £5460 PA, or £455 PM. :beer:

Sinc19

stphnstevey is right - contracted in (default) rate is charged at 11% on earnings above £453 per month (the earnings threshold), and 1% on any earnings above £3,337 per month (the upper earnings limit).

Example
Earnings: £3,400 per month
£453 below earning threshold @ 0% = £0
£3,337 - £453 = £2,884 between earnings threshold and UEL @ 11% = £317.24
£3,400 - £3,337 = £63 above UEL @ 1% = £0.63
Total Class 1 Primary contributions due = £317.87