What is payroll?
Payroll is basically the process of paying the employees of a company. It also includes the collecting of tax and National Insurance (NI) to pay to HMRC in accordance with UK legislations.
If you pay anyone a salary through your small business, you need to run a payroll. You can either do this yourself or outsource it to specialist accountants like the friendly experts at QAccounting.
The UK government has a scheme in conjunction with HMRC called Pay As You Earn (PAYE). You’re probably familiar with PAYE – it’s how most people receive their salary or wages, and it also takes care of tax and NI contributions which are due to HMRC.
Depending on your industry, it can be done weekly or monthly – here at QAccounting we help clients with both weekly and monthly payroll services.
I only want to pay myself – do I still need a payroll?
You need a payroll whether you’re a limited company, or in a partnership. This applies whether you have one employee, or 1000.
Limited company directors often pay themselves a salary via PAYE. This can either be instead of – or in addition to – payment of dividends. Paying yourself a director’s salary can be beneficial in a number of ways, including guaranteeing a regular income which helps secure benefits such as the State Pension.
Most limited company directors take most of their business income through dividends, but include a low PAYE salary too. Remember, a dividend-only payment model relies on the business making a steady profit. Speak to QAccounting about the most tax-efficient way to pay yourself as a limited company director.
The bottom line is – you need a payroll even if the only person you’re paying is yourself.
Don’t let your accounting and taxes get you down! Join QAccounting and enjoy reliable payroll services from experienced industry experts. With no immediate fees required and no lengthy contracts, we offer the flexibility you require for your business.
What does payroll involve?
Behind the scenes, payroll is a complex process with many moving parts.
This is why so many businesses let the experts at QAccounting handle it on their behalf.
There are plenty of things to consider when paying your employees. These include:
- Tax codes – these dictate different rates of tax applicable to each employee, and are subject to change
- Student loan repayments – some staff will qualify for these, at rates which depend on their salary and the repayment plan they’re on
- Workplace pensions – for those who opt in, you must collect and add to their pension contributions as part of a recognised pension scheme
- Calculating deductions – working out how much tax and NI to take from each salary
- Statutory sick pay (SSP) – employees qualifying for SSP should receive £99.35 per week for absence caused by illness
- Paid leave – your staff will be entitled to a number of day’s paid leave each year which must be logged on their payslips
- Company benefits – things like having a company vehicle affects employee tax status
- National minimum wage (NMW) – UK workers are entitled to NMW – which is different depending on employee age, and the threshold changes frequently.
- Subcontractors – if you work with subcontractors under the Construction Industry Scheme (CIS) then you’ll need to set up a payment scheme with HMRC
- HMRC payments – you must report deductions and pay them to HMRC by 22nd of each month using a Full Payment Submission (FPS) which details payments and deductions
At QAccounting, we can either take care of the entire payroll process for you – or support you in a DIY solution with the help of HMRC-compliant, easy-to-use payroll software.
Why should you choose QAccounting for payroll services?
You’ll save time
Processing payroll takes time – and lots of it. This is especially true if you have several employees.
Some companies choose to train an existing member of staff on payroll, which is costly – not to mention inconvenient if they leave the business at a later date.
Handing payroll over to QAccounting means you won’t need to spend your precious time enacting repetitive admin tasks like checking lists of tax codes every month – leaving you able to concentrate on your core business.
You’ll save money
No company can pay staff without processing a regular payroll. Larger companies generally have a payroll department entirely dedicated to processing staff’s details to ensure a smooth running of the payroll.
Smaller companies are unlikely to be able to justify the cost of a payroll manager, so outsourcing payroll is the logical thing to do.
Getting QAccounting to take care of your payroll is a far more cost-effective solution than in-house payroll services.
While we can’t take away the stress that comes with running a business, we can certainly make running payroll a breeze.
The QAccounting team are used to processing company payrolls accurately and on time – so you can rely on us to deliver this vital part of your company’s internal administration without it adding to your to-do list.
We ensure full compliance
New government legislation can change things overnight. You might not be able to keep up with the changing government regulations surrounding payroll – but we can.
At QAccounting, our tax and accounting experts make sure that each client’s payroll is up-to-date with changing rules, processed using HMRC-approved software such as Xero, as well as fully GDPR-compliant.
At QAccounting, you’ll be paired with your own dedicated account manager and nominated accountant who you’ll work with throughout your entire time as a QAccounting client.
You will benefit from continuity of service, knowing that the person dealing with your account understands you and your business inside out.
Contact us today for a payroll solution which suits the size and scope of your business.
As a limited company, it’s a legal responsibility to get payroll right. Don’t leave it to chance – allow QAccounting to handle your payroll for a reliable, accurate and timely processing each and every time.