Best Payroll Services in London - Specialists in Payroll and Payroll Tax
Motivating and retaining staff is one of the most challenging aspects of running a business. This is often acheived by offering staff a combination of cash and non-cash rewards. From a tax perspective, there are income tax and national insurance deductions that will need to be paid to HMRC. We offer a range of services including:
- Preparing weekly/monthly payslips
- Taking care of all HMRC compliance obligations and advising on your PAYE tax liabilities
- Advising on tax efficient cash extraction options for directors
- Access to a HR/payroll app that includes features such as holidays approvals, employee calendars, employee onboarding and document signing, and 24/7 access to payslips
- We use a marketing leading payroll software called Brightpay (WINNER of Payroll Software of the Year 2018, Payroll Software of the Year 2019, Best Payroll Software 2020 and COVID-19 Hero (Supplier).
How to build a remuneration package to attract and maintain the best talent
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Cash
Cash is king! Most people are interested in this so make sure your rate is competitive.
Bonuses
A well structured bonus pool will get the best out of staff. Keep goals realistic.
Pensions
A long term incentive and non-taxable benefit. Explain the benefits to your staff.
Company car
A great way to tie in staff for 2-3 years. Go electric to take advantage of the current tax breaks.
Holidays
Allow staff to buy/sell holidays and award additional days for each year worked.
Medical cover
A great way to show you care about staff and their families. The company gets a tax deduction.
Life insurance
Give financial comfort to your employees family in case of a death in service.
Shares
Turn top performers into ownners. Tax incentivised schemes are available.
Read our latest blogs on income tax planning, tax efficient benefits, payroll and PAYE tax.
Posted 8th February 2022
Posted 8 months ago
By Unknown
Tax effective staff benefits
Offering tax-effective benefits to your employees goes a long way to creating a more satisfied, happy and productive workforce. Talk to us about the available benefits and the tax implications. #tax
Posted 6th February 2022
Posted 8 months ago
By Unknown
Tax on gifts to employees and directors
Not sure about the tax implications of giving gifts to your employees? We’ll help you to make sure any gifts don’t unintentionally fall outside HMRC’s Trivial Benefits rules #tax #gifts
Posted 5th February 2022
Posted 8 months ago
By Unknown
What are workplace pensions?
Taking on your first employee? Did you know you need to provide a workplace pension scheme? Talk to us about running and managing your pension contributions and admin. #workplacepensions #pensions
Posted 2nd February 2022
Posted 8 months ago
By Unknown
Millennials, baby boomers or Gen Z : Do you have the right balance in your business?
Finding the right balance of "stick and carrot" is the key to motivating and retaining staff. Understanding your employees mindset can help you achieve your goals!
Posted 1st February 2022
Posted 8 months ago
By Unknown
What is the Marriage Allowance?
The Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner. This reduces their tax by up to £252 in the tax year... #tax #accounting #VAT
Posted 25th January 2022
Posted 8 months ago
By Unknown
Employing family members in the business
Thinking of employing a family member in your business? Come and talk to us about planning out the right considerations around pay, benefits, and tax-efficiency. #tax #family
Posted 21st January 2022
Posted 8 months ago
By Unknown
The impact of the new National Insurance changes
Increases to National Insurance contributions (NICs) are on the way. But do you know the full implications for you and your business? We’ve got the lowdown. #NationalInsurance #planning
Salary vs Dividends
See our blog which explains what a tax efficient strategy looks like for directors.
What is PAYE tax
It is tax and national insurance contrbutions you must deduct from your employees each month and pay over to HMRC. As an employer, you must also pay employer national insurance contributions on the salary you pay staff. The rates of tax and national insurance and the bands to which they apply change each year.
What are my payroll obligations as a small business employer
- Provide your staff with payslips each week/month. This provides a breakdown of their pay and deductions
- Report the salary information to HMRC on the same date as you make a payment to your staff (the tax and ni is paid each month or quarterly if you are a really small business)
- Issue staff with a P45 (summary of their year to date earnings and tax deductions) if they leave your business during the tax year
- Provide staff with a P60 (end of year earnings summary) by 31 May following the 5 April tax year end
- Issue P11Ds (summary of non-cash benefits) to staff by 7 July following the 5 April tax year end (and pay any tax theron)
Non-cash staff benefits
If you provide non-cash benefits to staff such as cars, medical insurance, life insurance or examination grants these must be declared on a P11d and submitted to HMRC. The employee effectively has to pay income tax on these benefits and their tax code is normally adjusted to reflect this. As an employer, you usually have to pay national insurance contributions of 13.8% on these benefits. The rules are complicated and each benefit has a different tax and national insurance impact. Click here for full reporting and tax implications of the various benefits.
Auto enrollment
As an employer, you must enrol qualifying staff onto your company pension scheme. For the 2021/22 tax year, the minimum contribution is 8%. Contributions are required on the earnings limit which is £6,240 - £50,270. As an employer, you must make a 3% contribution and your emplyee makes a 5% contribution.
Auto enrollment opt out
Your staff can choose to opt out at any time. If they opt out within one month, any contributions already made will be refunded (shown as a refund on the payslip the following month). They will receive a letter from the pension provider within a week of being opted in and they will need to contact the pension provider directly. You will then receive notification telling you they have opted out.
How we can help
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Advice
The package for a top executive is different to a sales person. Understanding what drives and motivtes them is key to putting together a package. You want the maximum return your "investment"
Calculate tax
Rewarding staff by reason of their employment has income tax and national insurance implications. Don't get caught short.
Compliance
The reporting requirements are complex and mistakes will be costly. Outsourcing is the best decision to reduce your risk of things going wrong.
