At Positive Accountants, we have been helping small businesses like yours for over 15 years with payroll issues or problems and working to keep our clients fully updated with the relevant changes in compliance.
As premier accountants in London we don’t just do your books and send you on your way. We understand how to support you and help your business grow.
So we put together this helpful blog, so you can avoid any potential headaches and possible financial penalties, by finding out what small business owners need to know about payroll compliance.
Small Business Payroll
Every owner knows that running a small business is hard work, and one of the many things you have to worry about is payroll. Things can quickly deteriorate if you are not paying your employees on time or there are mistakes regarding the correct amount.
Payroll can be a daunting task, but it doesn’t have to be. In this guide, we will advise you on many factors you need to be aware of about small business payroll.
There are a few things you need to take into account regarding payroll. What type of company you are running, is an obvious question, but be sure if you have recently purchased or taken over a business. Are you a fully limited company or are you actually registered as a sole trader, or possibly even something else?
Every company type has variations or slightly different rules and regulations when it comes to payroll.
Limited Companies Compared to Sole Traders
Many clients of Positive Accountants see being a limited company as making payroll slightly more straightforward. The person in charge of payroll will need to calculate employees’ salaries and make any deductions that are required, such as Income Tax and National Insurance contributions to HM Revenue & Customs.
We can help with ensuring that you are using the correct rates as part of our accounting services.
As a sole trader, the process can be a little more complicated. You need to carefully calculate employees’ salaries and deductions, and to pay the Income Tax and Class II National Insurance contributions. For many sole traders this is a very time consuming task, and a revenue drainer.
You will also need to register with HMRC as a PAYE employer. The fastest way to accurately do this is speak to one of our specialists. As professional small business accountants, we will make the process very smooth, ensuring your registration is right first time.
Payroll Compliance
he process of setting up Payroll can be a huge hassle for SMEs, that’s why businesses who want to work smart, use Positive Accountants and our experienced payroll team that takes all the hassle out of paying your staff, enabling you to focus on directing and growing your business.
Outsourcing Payroll Services for Small Businesses
The easy and cost effective solution is to outsource your payroll to professional accountants in London as this is a great option for businesses that simply don’t have the time or resources to do it themselves, and can find better use of their time.
Ensure the company has a lot of experience processing payroll for small businesses and should have a good reputation and be known for providing high-quality services.
For our clients we make it easy for you to submit your payroll data and track your payments, and we offer a full range of services, including preparing payslips, filing monthly returns, and paying taxes and National Insurance.
All at an affordable price.
2022 payroll compliance checklist
- Ensure that the data you hold on your employees is up to date. This seems basic, but you’d be surprised at how many companies get their payroll wrong because of incorrect employee data.
- Ensure everything is carefully recorded such as maternity leave, sick pay, overtime, promotions, pay reviews, bonuses to name but a few. It takes time but your payroll will be compliant.
- No matter if you have a single employee or 25+, you are bound by the 2012 workplace pensions regulations. integrating your pension duties into your payroll, is a legal requirement, but again can be very time consuming without the required experience.
- You may only be a small business but with a single employee abroad, it means more payroll compliance. International employees are subject to a separate bout of legislation relating to their pay compared to their UK counterparts.
- You must exercise due diligence in protecting against fraud. If you fail to record items or discrepancies carefully, any money that is lost may never be accounted for.
- There is every chance you could get audited by a regulating authority, in which case you’ll need to produce an audit trail. Your professional small business accountants will handle this should it arise.
- You will not be surprised to hear that HMRC won’t hesitate to penalise you, should you miss an important deadline “no matter how inadvertently”. The problem is that there are so many, and most of them relate to payroll in some capacity.
We make a note of important dates such as tax deadlines and quarterly reports, and make sure you hit them every time.
Conclusion
Running a small business is hard work, but with the right accountants in London and payroll advice, it will be easier.
We can’t possibly teach you everything you need to know in a short blog, but we are sure this has been useful.
So whatever type of company you are running, talk to Positive Accountants and payroll compliance and admin, is all plain sailing.
