Employing staff, Payroll, PAYE, Construction Industry Scheme
PAYE / Pay as You Earn
There are many legal and administrative obligations placed upon businesses once they decide to employ staff. (first steps as an employer) New Employers must contact the Inland Revenue who will assign you an office and PAYE reference number (this will be found on the little yellow booklet they send you). You will also receive an Employer's Starter Pack. If necessary we will deal with registration on your behalf. HM Revenue & Customs (HMRC) will provide all the stationery you need, including manual calculation tables and guidance manuals. HMRC also provides free help, advice and workshops.
 The yellow booklet (P30) you receive is for recording tax and national insurance deductions. The PAYE period runs from the 6th of a month to 5th of the following month. If you pay wages monthly, you will have figures from one payroll to use; if you pay weekly you will have four or five weeks of figures to work from. Calculate the tax you've deducted from employees and add to it the amount of national insurance you've deducted. Finally add the employers contribution of national insurance. The total will be the amount payable to HMRC on the 19th of each month following the period end of the 5th.
For Employers already operating a PAYE system but wanting to pass the onerous task to someone else, we, or other payroll bureaux can do this on your behalf, either weekly, fortnightly or monthly. We also take care of all year-end paperwork, and online filing. For payroll we use both Sage and Iris Paymaster software. We then ensure you meet deadlines with regards to monthly P32's to the Inland Revenue. In the event that you fail to comply with the legislative obligations, you will incur penalties.
The peace of mind that comes from outsourcing payroll is quite often worth paying for. Outsourcing your payroll responsibilities does not however release you from your legal obligations, which always remain with the employer. Filing online, whereby year end returns are transferred online instead of in paper format is simple, whether you use Sage payroll, Iris Paymaster, or use the Inland Revenue's software on their site.
Should you decide to keep your payroll in-house, you will find a wide range of software available, with prices starting from around £99. HMRC have recently introduced the Payroll Standard which is aimed at helping employers decide which payroll product or software will best support their needs.
For more information on Iris Paymaster software click here or telephone: +44 (0)870 243 1952 to speak to sales at Iris

We can also help those who are self employed and / or CIS registered
New CIS / Construction Industry Scheme
If you're registered under the CIS, you need to keep a record of subcontractors you've deducted payments from (or if they're paid gross, keep a note of these payments.) You will firstly need to verify (with HMRC) the status of subcontractors you pay, and deductions are then 20% of labour of verified subbies, or 30% if not verified. Materials are not subject to deductions. The tax period also runs from the 6th of one month to the 5th of the next month. Calculate your figures from the date you actually paid the subcontractor. By the 19th of the month you will need to tell HMRC how much you have deducted, and pass the amount to them. This is recorded on the yellow booklet (P30) you will have received on registration.
You must send a monthly statement to the subcontractor, showing how much has been deducted, and the total of net payments made to him/her. There is no need to send a monthly statement to those subcontractors paid gross, but you must include them in your return to HM Revenue & Customs each month.
Contact us for outsourcing payroll and CIS
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