Payroll and Employee Benefit Services
‘Real Time Information’ and Auto Enrolment have increased the complexity and compliance burden of running your own payroll and many businesses now choose to outsource this function.
We offer an in-house payroll service for single director companies where a) we prepare the statutory accounts and b) that are not registered for auto enrolment.
For larger payrolls and CIS we use a payroll bureau operated by a local firm of accountants we work closely with. This provides a cost effective solution and the technical knowledge for businesses operating a payroll with auto-enrolment obligations.
Many employee benefits such as medical insurance and company cars are taxable and have to be reported annually to HMRC on a P11D form. The employee is taxed on the benefit through their PAYE code or tax return and the employer pays National Insurance on the benefit.
We can prepare and submit your P11D forms and advise you of the amount of National Insurance that you need to pay as an employer.
PAYE Settlement Agreements
If you reward your employees you may decide that you want to pay the tax on the benefit yourself. For ‘one off’ benefits such as tickets to a special sporting event this can be done through a PSA.
A PSA allows an employer to make one annual payment to cover all the tax and National Insurance due on taxable benefits for their employees. If they get a PSA for these items they do not need to put the payments through their payroll or include the payments in their end-of-year P11D forms.
HMRC have to agree that you can use a PSA and for which benefits.
The calculation of the total tax and National Insurance due on a PSA is not straight forward and is usually done by accountants.
We can apply to HMRC to get a PSA for your business and prepare the annual computation from your records.
To discuss your Payroll and Employee Benefit requirements with us please get in touch