November 16th, 2021.



All businesses that take on staff and pay them more than the lower earnings limit – currently £120 per week or £6,240 a year – will need to process a payroll and submit the information via an Real Time Information (RTI) submission.

Employers are required to keep comprehensive payroll records of salary paid and deductions that include income tax, national insurance, student loans, payments made to HMRC, employee leave, sickness absences, and tax code notices. Online accounting software, such as Xero can make this much easier

For small businesses with fewer than nine employees, HMRC provides an online PAYE tool that is free to use. But a word of caution – its functionality is very basic and suitable only for the smallest of businesses.

Taking on new members of staff is a key stage in the growth of any business. It is a step that brings new responsibilities and obligations, not least of which to those employees and to HMRC.


For the full story at smallbusiness.co.uk CLICK HERE.