Here is a detailed look at our process:
We will prepare your UK payroll for each payroll period to meet UK employment tax requirements specifically:
- calculating the pay as you earn (PAYE) deductions;
- calculating the employees’ national insurance contributions (NIC) deductions;
- calculating the employer’s NIC liabilities;
- calculating other statutory & non-statutory deductions; &
- submitting information online to HMRC under real-time information (RTI) for PAYE.
We will prepare & send to you the following documents before the time of payment through the payroll or due date for delivering information to HMRC:
- payroll summary report showing the reconciliation from gross to net for each employee & all relevant payroll totals;
- the data included within each full payment submission (FPS) for taxable pay;
- a payslip for each employee;
We will submit FPSs online to HMRC. FPSs must reach HMRC normally on or before the payday. You must ensure that the data provided to us is complete & accurate.
At the end of the payroll year we will:
- prepare the final FPS (or EPS) & submit this to HMRC; (The final FPS (or EPS) for the year must reach HMRC by 19 April following the end of the tax year.) You must ensure that the data provided to us is complete & accurate.
- prepare & send to you form P60 for each employee on the payroll at the year-end so that you can give them to employees by the statutory due date of 31 May following the end of the tax year.
Where you have instructed us to do so we will provide such other taxation ad hoc & advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter & standard terms & conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:
- advising on ad hoc transactions (for example, termination payments to employees) & queries (including telephone conversations), preparing & submitting information in the relevant format to HMRC & calculating any related tax & NIC liabilities;
- dealing with any compliance check or enquiry by HMRC into the payroll returns;
- preparing & submitting any amended returns or data for previous tax years & corresponding with HMRC as necessary;
- conducting PAYE, & benefits & expenses health checks.
You are legally responsible for:
- ensuring that the data in your payroll submissions is correct & complete;
- making any submissions by the due date;
- paying tax & NIC on time.
Failure to do this may lead to penalties and/or interest.
To enable us to carry out our work you agree:
- that all information required to be delivered online is submitted on the basis of full disclosure;
- to provide full information necessary for dealing with your payroll affairs; we will rely on the information & documents being true, correct & complete, & will not audit the information or those documents;
- to advise us in writing of changes of payroll pay dates & workplace pension scheme contribution dates;
- to notify us at least 10 working days, or such other period as agreed with us, prior to the payroll pay date of all transactions or events that may need to be reflected in the payroll for the period, including details of:
- all new employees (including full names, address, date of birth, gender, national insurance number) & details of their remuneration packages
- all leavers & any termination payments
- all changes to remuneration packages
- all pension scheme changes
- all changes to benefits & expenses reportable under an existing payrolling benefits & expense online service registration
- irregular and/or ad hoc payments & the dates to be paid;
- to approve the data required to complete:
- in-year FPS by at least 10 working days prior to payroll pay dates so that they can be submitted on or before payday, or as agreed with us
- in-year EPS by at least 10 days prior to 19th of the month following the tax month
- final FPS (or EPS when applicable) for the year at least 10 days prior to 19 April following the end of the tax year
EYU within 10 days;
- to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
- You will keep us informed of material changes in circumstances that could affect the payroll. If you are unsure whether the change is material or not, please let us know so that we can assess its significance.
Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.
If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll & returns to meet the agreed payroll date & filing deadlines but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances. We may charge an additional fee of £75.00 for work carried out in a shorter time period.