In order to make these payments you will need to register with HMRC at www.gov.uk/paye-online/enrol
Once you’ve established if you will be paying your employees, and/or yourself weekly or monthly, you will need to file certain information with HMRC. There are 3 types of submissions, known as Real Time Information (RTI) Returns.
1) Employer Alignment Submission (EAS)
The purpose of this return is to align your records with those held by HMRC. An EAS would usually be submitted once before your first payroll run. If you change your accounting or payroll software, you will need to resubmit this return.
2) Full Payment Submission (FPS)
This return must be filed before or when an employee is paid. It includes all the details of the payment including the date, payment amount and any deductions for PAYE and National Insurance (NI).
3) Employer Payment Summary (EPS)
This return is filed to notify HMRC of any amendments to the tax and NI due. It is also used if a nil payment is processed, meaning no employees have received any salary payments. You can also use the EPS return to claim back any statutory amounts.
In addition to these returns, there are also certain annual requirements too. These include:
P60 – End of Year Certificate
Employed staff will need to be issued with a P60 at the end of each tax year. The P60 details what they have been paid in that year and the deductions that have been made.
P11Db – End of Year Expenses & Benefits Report
If you or your staff members receive any benefits in kind, such as medical insurance or a company vehicle,
or they claim expenses through payroll, a P11Db will also need to be completed and submitted to HMRC.
This is used to calculate the employer’s Class 1A National Insurance Contributions (NICs).
The good news is that at Ellacott Morris, we can manage every aspect of your PAYE, giving you one less thing to worry about. Visit www.ellacottmorris.co.uk/payroll/ or call us on 01255 425059 to discuss your requirements.
By Michelle Morris on 22/02/2022 06:00:00