Payroll Services in Milton Keynes
As a firm of accountants offering comprehensive payroll services in Milton Keynes, we have had many years’ experience in both setting up and running monthly payrolls for limited companies. In this post we have discussed some of the benefits of running a monthly payroll and how to go about setting it up.
Most directors of limited companies like to pay themselves a salary which is below the National Insurance threshold and well within their personal allowance.
The advantage of doing so is that it reduces the company’s corporation tax bill.
In order for the company to register as an employer you need to register on HMRC’s website. You will need the following information;
1.) Company name
2.) Company registration number
3.) Company registered address
4.) Name of the director
5.) Director’s national insurance number
6.) Passport number of the director
7.) Director’s home address
If you are looking for a comprehensive payroll services in Milton Keynes, please contact us and we can register your limited company as an employer on your behalf, saving you a lot of time and hassle.
Once the company is registered with HMRC it can take up to 3 weeks to receive the employer reference number and the account office address.
With the registration details you can use a payroll software to set up the company as an employer for PAYE purposes.
The individuals that will be on the payroll need to provide details such as the following;
1.) Full name
2.) Date of birth
3.) Home address
4.) National insurance number
5.) Confirmation whether or not this is the only job they have had since the beginning of the tax year
Monthly RTI submissions need to be made to HMRC, usually generated by the payroll software.
It is important that directors make National Insurance contributions in order to obtain a state pension. Therefore, the directors may deem that their salary is above the National Insurance threshold but below the personal allowance.
One thing to note is that dividends cannot be declared using the PAYE scheme. This is because dividends by their very nature are declared once the profit is known after the year end. Therefore, it is not possible to declare a monthly dividend using the payroll.
All income is declared on the self assessment. If the salary received during the year was of a high level and subject to income tax then the income tax will need to be disclosed on the personal tax return to lower the tax liability.
If you are looking for comprehensive payroll services in Milton Keynes, or if you have any questions on the above or any other accounting matter then please do contact us on 01908 646 100. Alternatively you can email us at info@khan-co.com or use our contact form and we will be in touch.