Running payroll means getting people paid correctly and reporting to HMRC every single payday. Ken Accounting provides payroll services in Uxbridge for small businesses and limited companies, from a sole director to a growing team. We take care of the calculations, payslips, HMRC submissions and pension duties for a fixed fee.
Monthly payroll and RTI submissions
Under Real Time Information (RTI), employers must report pay to HMRC each time employees are paid. A Full Payment Submission (FPS) must be sent on or before payday, whether you pay HMRC monthly or quarterly.
Each pay period, our payroll service covers:
- Calculating gross pay, tax, National Insurance, pension contributions and any other deductions
- Producing payslips for your employees
- Sending the FPS to HMRC on or before payday
- Sending an Employer Payment Summary (EPS) when you need to claim allowances or reduce what you owe
- Telling you how much to pay HMRC and when
PAYE is normally due to HMRC by the 22nd of the following tax month if you pay electronically. We give you the figure in good time, so the payment is never a surprise.
All you need to do is tell us about changes before each payroll run: new starters, leavers, overtime, bonuses, sick pay or changes to hours. We will agree a simple routine and a cut-off date that suits your payday.
If you are taking on your first employee, you must register as an employer with HMRC before the first payday. We can do that for you.
Auto-enrolment pensions
Every employer has duties under workplace pension law, starting from the day the first member of staff begins work. You must enrol staff into a workplace pension and pay employer contributions if they are aged between 22 and State Pension age, earn at least £10,000 a year and normally work in the UK.
The minimum total contribution is 8% of qualifying earnings, of which at least 3% must come from the employer. Other staff may have the right to opt in or ask to join.
We help you keep on top of the ongoing duties:
- Assessing staff each pay period and enrolling them when they become eligible
- Calculating employer and employee contributions through payroll
- Sending the right information to your pension provider
- Reminding you about re-enrolment and your declaration of compliance with The Pensions Regulator
[TODO: Gaurav to confirm whether Ken Accounting submits pension contribution files and declarations of compliance on clients’ behalf, or advises only]
Directors’ payroll
Most company directors pay themselves a salary through payroll, often alongside dividends. HMRC expects you to register as an employer even if you are only employing yourself, for example as the sole director of a limited company.
Directors’ National Insurance is worked out differently from other employees, usually on an annual basis. Getting it wrong can mean paying too much or too little, so it pays to have it set up properly from the start.
We can run a simple directors’ payroll and agree the salary level with you as part of your wider tax planning. See our limited company accounts page for more on salary, dividends and pensions.
Year-end: P60s and P11Ds
At the end of each tax year, you must give a P60 to every employee still working for you on 5 April, by 31 May. We prepare these as part of our service.
If you provide expenses or benefits, such as a company car or private medical insurance, you may need to report them to HMRC by 6 July. Class 1A National Insurance on those benefits is then due to HMRC. We can prepare the P11D and P11D(b) forms for you.
HMRC is planning to require most benefits to be reported through payroll in phases from April 2027, instead of on P11Ds. If you provide benefits, we will help you prepare for the change.
What it costs
We charge a fixed fee for payroll, agreed before we start. The main things that affect it are:
- The number of employees and directors on the payroll
- How often you pay staff, such as weekly, fortnightly or monthly
- How many changes there are each pay period, such as variable hours, overtime and bonuses
- Whether you need auto-enrolment support, P11Ds or other extras
[TODO: Gaurav to confirm “from £” price per employee or keep as quote-only]
Payroll works well alongside our bookkeeping service, so your wages and PAYE are recorded correctly in your accounts. See our fees page for more on how we price.
FAQs
Do I need to run a payroll if I am the only director?
Usually, yes, if you pay yourself a salary. HMRC guidance says you must register as an employer even if you are only employing yourself as the sole director of a limited company.
When must I report payroll to HMRC?
You must send a Full Payment Submission on or before each payday. PAYE is normally due by the 22nd of the following tax month if you pay electronically.
Who needs to be auto-enrolled into a pension?
Staff aged between 22 and State Pension age who earn at least £10,000 a year and normally work in the UK. Other staff may have the right to opt in.
Can you take over our payroll part way through the year?
Yes. We take the year-to-date figures from your previous provider or software and carry on from there, so your employees see no difference.