You must register before the first payday but you cannot register two months before you start paying employees. Your employer PAYE reference number should be with you within five days of registering.
How to Calculate PAYE?The amount of income tax and National Insurance that you pay is dependent on your salary. For the tax year, 2018-19, you can earn £11,850 without paying tax. If you are self-employed and earn anything in addition to your wages, then the amount of tax and National Insurance you pay must be calculated through self-assessment. You must keep a record of all incoming and outgoings and complete a tax return form.
You can contact HMRC directly or enlist the services of an accountant to do this for you.Read More : All About PAYE Scheme
Nomisma PAYE Software for Accountants
If you are an accountant then PAYE will be a term you are well acquainted with. PAYE is a fundamental aspect of payroll. Luckily for accountants, the calculations are automated by the best payroll software providers. There is some admin duties to add the necessary data each month but the software does most of the leg work.Cloud accounting software will automatically calculate PAYE for you and submit the relevant tax to HMRC. If you are an accountant and want to learn how to make payroll simple, read our blog telling you how. We hope this article has answered any questions you have on PAYE and has given you the information to be HMRC-compliant. If you are an accountant looking to improve the efficiency of your payroll services and PAYE submissions, click here to start your free Nomisma trial.