You’ve decided you need a little extra help with your business. That sounds sensible, and plenty of people out there are in need of work. You should advertise! Employ someone! Have somebody to share the biscuits with at coffee break time!
Be aware, though, that the complications don’t stop once you’ve got your head around the recruitment regulations of and found the ideal candidate. Because it’s then that you’ll realise you’re responsible for a tiny but important payroll.
Tax codes, National Insurance – are you confident you can handle these matters, and have the time to ensure you calculate them correctly for your employee every month? What about submission of RTI (Real Time Information) Returns to HMRC every payday? Missing an RTI Return could mean facing a fine of £100, and interest will accrue on any underpaid tax and NI too.
Health insurance, a company car, travel expenses, uniform, parking, childcare… these are all things that have to be taken into account if you supply them or supplement the cost for your staff. You may have to inform HMRC and pay tax and National Insurance on these items. You can find a guide to a bewildering array of employee expenses and benefits here: Expenses and Benefits A to Z.
Do you know your P11 from your P9? How to complete a P45 or a P60 correctly? What you would need a P46 for? Your SSP from your SMP?
Pass Your Payroll Duties to a Professional
To save yourself time and stress, and eliminate the danger of making errors and falling foul of HMRC regulations, why not leave your payroll in the hands of a professional?
Ideally, your accountant should also supply your payroll services. Although there are companies that solely offer payroll services, your accountant will have an overview of your complete financial situation, so they are well placed to give you the best advice on payroll matters and any benefits you may wish to give your employees. They can issue any necessary forms and handle Statutory Sick Pay and Statutory Maternity Pay.
They will ensure the correct tax and National Insurance amounts are deducted and paid, issue payslips, submit your RTI information every payday and represent you in any payroll enquiry instituted by the HMRC.