Becoming an Employer
Becoming an employer in the UK carries a number of requirements and responsibilities.
To someone starting out as an employer, It may seem exceptionally overwhelming at first. However, DD Payroll Services is available to take care of the majority of employment issues for you. We can also assist you in other areas.
There are a lot of legal obligations regarding payroll which we will be able to support you with and in most cases, relieve you of the worry that comes with the role of being an employer. We will inform you when your payroll account is set up, run and when payments are due to HMRC. We can also manage your funding to ensure payments are made correctly not only to your employees but also the appropriate organisations such as HMRC and Insurances etc.
Below is an overview of some of the legal requirements and responsibilities that you, as an employer will need to endorse and are available through DD Payroll Services;
As an employer you must:
- Register as an employer with HMRC
- Set up and operate a PAYE (Pay As You Earn) scheme on your employee’s behalf
- Keep tax records on your employee’s behalf
- Provide your employee with regular payslips
- Provide an employment contract within two months of their starting date
- Pay regular income Tax and National Insurance Contributions by HMRC’s payment deadlines
- Pay employer’s National Insurance Contributions
- Provide Real Time Information (RTI) to HMRC
- Have Employer’s Liability Insurance in place
- Pay your employee the National Minimum Wage
If not DD Payroll, what are the alternatives?
Do it yourself
Running your own payroll may not be as easy as using our services. As an employer, you will manage funding and payments to HMRC yourself. Liaising with HMRC can prove to be quite difficult as their tax tables and tax bands that are currently in force can be confusing to say the least. Legislation changes, knowledge of tax, knowledge of employment law and the liabilities for payments and payment dates for HMRC as well as working with RTI (Real Time Information) could mean that fines are issued by them if relevant information, declarations & payments are not received on time.
Using an accountant
This may be far more expensive than our services. In addition, the need for help with aspects of employment law, any help and support in this area, could be very expensive if advice is sort from a solicitor. The cost of a DD Payroll annual subscription will be far less expensive than the above services.
If you do decide to become an employer, you must always declare if someone is in your employment as to avoid this and not paying tax is a criminal offence. Heavy penalties can be levied at you, coupled with the affects for future state benefits of your employee such as pension and entitlements would be your responsibility.
FOR OVER 10 YEARS, DD PAYROLL SERVICES HAS PROUDLY PROVIDED A STRESS FREE PROFESSIONAL SERVICE TO OUR CUSTOMERS THROUGHOUT THE UK.