PAYE: The red tape
PAYE can be a complicated and time-consuming process which often binds employers up in red tape. It is not only about the calculation of tax due, which is often managed through a payroll system, employers also have to be ready to implement any changes that HMRC deems fit, make payments of any tax deducted to HMRC, calculate statutory payments and keep accurate records. They also have to ensure that they send reports to HMRC at designated times, otherwise, they could end up with hefty fines. Real Time Information (RTI), for instance, requires employers to notify HMRC of the tax liability for each of their employees at the point of payment whilst the end of year forms such as the P35 needs to be returned no later than 19th May each year.
HMRC, can and do carry out audits of individual payrolls. They usually select employers at random and might well arrange to visit their premises or to request a company to send them all the records that they have. They can request records from your payroll department going back 7 years, including the current tax year. Should they notice any discrepancies during these reviews, they will backdate any extra tax owed and may well issue the employer responsible with a fine. With this in mind and given the complexity and time-consuming nature of PAYE, it makes sense to outsource your liability to an expert.
Here at Nigel Butler, we can help you manage your payroll to ensure that you can meet all of your PAYE liabilities. We can ensure that all tax liabilities are calculated accurately, that your payments are made on time and that your reporting to HMRC is accurate and in line with their timescales. We can ensure that you are compliant with all of your PAYE responsibilities, ensuring that you don’t end up with any nasty surprises further down the line. Let us help you with the red tape of PAYE by getting in touch today.