Payroll Service Information
Inland Revenue Registration
Income Tax and National Insurance Contributions (NI) must be paid by all UK residents on their income. The onus is on the employer to make the correct deductions for tax and NI through the Pay as You Earn (PAYE) scheme.
In order for us to register you on the PAYE scheme we need the following information:
- Organisations name and address
- Nature of business (i.e. voluntary organisation)
- Number of employees
As an employer you must also make an employer’s NI contribution on all your employee’s earnings above the threshold. Currently the contribution is 12.8% on all earnings above £110 per week (£476 per month). You are liable to pay this contribution.
When a new employee starts they need to fill in a new employee details form, this should be sent to us with the employees P45. If the employee does not have a P45 they will need to complete a P46 form and send it to us.
We cannot process the salaries if the information we receive is incomplete.
If there are any changes to the payroll i.e. salary increase, change in number of hours worked, sickness etc we need to be notified by a date which will be agreed upon on acceptance of VANL processing your payroll. Plenty of notice will ensure that your employees are paid accurately and on time.
If a change to the payroll is reported after the agreed date there are two options open to you:
1. The change can be implemented for the next payroll; or
2. We can reprocess the payroll for the staff member(s) concerned which will be charged at an additional £4.75 per person.
When an employee leaves let us know the leaving date as soon as it is known. Please tell us if there is any payment due in lieu of notice, holiday pay or redundancy pay. If an employee is entitled to redundancy pay we can calculate the amount due based on the statutory amount for you. This is important so that the P45 can be issued with the correct details. We will forward part 1 of the P45 to Her Majesty’s Revenue and Customs (HMRC), parts 1a, 2 and 3 of the P45 will be forwarded to you with any other wage information for that period, and you should then forward this on to the employee.
We will send you payslips for your employees, a payroll summary sheet and a company totals sheet every processing. We will also send out the HMRC payslip so that you can make payment of Tax and NI due. Payments to HMRC should reach them by the 19th of the following month. If there is no payment due we will forward the payslip to HMRC with NIL in the figures boxes.
If you require any other reports please discuss your requirements with us, although there may be a charge for additional reports supplied.
All employers are legally obliged to record their employee’s absences from work through sickness which are over 4 consecutive days (including holidays and weekends). They are also obliged to pay SSP regardless of the organisations contractual arrangements with their employees for making payments or its entitlement to reclaim amounts paid out.
Employees who earn more than the lower earnings limit (currently £97 per week) are entitled to receive up to 28 weeks SSP. Because of the restriction of the amount of SSP payable during a given period it is important that proper records are kept.
It is essential that we are informed if an employee is sick for more than 4 days and that we are sent a Fit Note for the sickness period. Some periods of sickness may be linked so if an employee has previously had a period of sickness which has lasted 4 days or more please also inform us.
The organisation may be able to reclaim some of the SSP paid out. The amount is worked out on a percentage of the total National Insurance contributions in the month. We will calculate this for you and adjust the amount you have to pay HMRC for that month accordingly.
Other Statutory Payments
All employers are legally obliged to pay any Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP) and Statutory Adoption Pay (SAP) due and keep the required records.
Please let us know as soon as possible if your employee is going on leave for maternity, paternity or adoption reasons and we will work out if the employee is entitled to the appropriate statutory payment.
Small employers can reclaim 100% of the statutory payments as well as a small percentage of compensation. If an employer has total NI contributions of more than £40,000 pa they are classed as a large employer and can only claim 92% of the statutory payments paid.
We will calculate this for you and adjust the amount you have to pay to HMRC accordingly.
Year End Returns
At the year end P14’s and P35’s have to be sent to HMRC. We will complete these and file them online for you. Due to these returns being filed online before it being compulsory, for organisations with fewer than 50 employees.
P14’s and P35’s must be received at the tax office by the 19th May each year. There are automatic fines for any organisation not submitting them by this date.
We will also complete P60’s which must be issued to your employees by 31st May each year if they are still employed by you.
Employers are legally required to keep certain records for a minimum of three years although HMRC can go back 6 years if they wish to. For this reason we try to keep as full information on your organisation and employees as possible. These include:
- Personal Details Form
- P45/P46/Tax Code Notifications
- Sick Notes/SSP Payments
- SMP/SPP/SAP payments and related paperwork
- Student loan deduction notifications
We require originals of all these documents as well as any other information that may affect payment.
The information we request will only be used and stored in a manner that complies with the Data Protection Act 1984 and 1998 and all subsequent amendments, your employees have a right to examine the data held in their name.
If you have any queries about any aspect of payroll please contact us. If we are unable to answer a particular query we will probably know the right person to ask!
Forms to help you
New Payroll Group Form
New Employee Email Form
Authorising your Agent Form
Authorising your agent to use PAYE Online Services Form
Voluntary Action North Lincolnshire
4 – 6 Robert Street
Tel: (01724) 845155