What do I need to know about tax and PAYE for my employees?
As an employer, understanding and complying with your legal responsibilities to the people working for you can be a complex task. Getting to grips with the complexities of the rules can divert precious time and resources away from the running of your business. The team at BSR Bespoke accountants in Tunbridge Wells is here to guide you.Employees have a permanent or indefinite contract and are paid via PAYE. They are entitled to rights including sick pay and protections against unfair dismissal. A subcontractor can either be self-employed or a limited company and is responsible for paying their own tax and National Insurance.If a contractor is in the construction industry they will need to assess their subcontractors and deduct the appropriate level of CIS tax. They will also need to account for the VAT reverse charge.
What are my tax responsibilities as an employer?
Employment law responsibilities are big enough to begin with. If you employ just one person, you'll need a PAYE scheme. And every time you pay an employee, you'll have to report it to HMRC via the real-time information (RTI) process.
What do I need to report to HMRC?
- When and how much you are paying employees
- What deductions you have made (e.g. tax, national insurance, student loan)
- Recoverable CIS deductions
- When an employee starts/leaves
- The PAYE/NICs due to be paid over to HMRC by the 19th of the following month.
- Taxable benefits in kind if you provide certain benefits such as a car or private medical insurance to your employees.
Our experienced and friendly Tunbridge Wells team can also assist with general employment law enquiries and put you in touch with trusted professional advisors.
How does auto-enrolment for employees work?
The aim of auto-enrolment couldn't be simpler: every single employer has an obligation to enrol eligible employees into a workplace pension scheme to which both employee and employer contribute within three months of them starting otherwise you could face a penalty.We can help you manage your requirements by:
- determining and scheduling your obligations
- liaising with the Pensions Regulator as required
- introducing independent pensions advisors to set up and manage the scheme
- introducing approved payroll agencies if required.