When employing someone for the first time, you must register as an employer. This is to inform HMRC that your employee has started working for you.
You will now have a responsibility to calculate the tax and national insurance contributions (NIC) of your employee, and then withhold this from their pay and submit this to HMRC on their behalf.
Furthermore, you will now be responsible to pay an additional employer’s NIC.
Tax and national insurance is usually calculated on a monthly basis and payments are made to HMRC by the 19th of the following month, or the 22nd if paying electronically.
Why is it important?
It is important to make sure figures are calculated correctly, so that you make the correct payments.
By not calculating the tax and NIC correctly, you may pay more than you have to. If you pay HMRC less than you have to, you have return the correct the withheld amount with interest and other penalties.
What we do
We will register you as an employer and ask your employees to fill out starter forms.
On a monthly basis, you will tell us the rate of pay and how many hours worked.
We will calculate the tax and NIC’s for you and also provide you with payslips for your employees.
We will also submit your end of year returns to HMRC and provide P60’s to your employees at the end of the year.