Considerations for new employers
Taking on new employees can be mind boggling, and making mistakes can be expensive financially and damage your relationship with your employees – there are a myriad of things to consider:
- Employer pension obligations (“auto enrolment”)
- Employer National Insurance contributions
- Employee tax and student loan deductions at source
- The taxation of employee benefits
- Tax equalisation and globally mobile employees
- Monthly “real time” reporting to HMRC and Annual Returns
- Employee payslips, annual statements (P60s) and statements of benefits (P11Ds)
- HR / UK Employment law
We provide a one-stop-shop Payroll service which includes the following:
- Applying for payroll registration with HMRC
- Calculating of employee tax withholdings
- Calculating employer tax obligations
- Preparing monthly employee payslips
- Preparing monthly employer summaries and advising on tax payment deadlines
- Filing monthly and annual payroll returns to HMRC
- Preparing annual statements of earnings (P60)
Do you want to know how much it will cost to take on your first employee and what their take home will be?
Human Resources Support
We offer a comprehensive HR service, advising you on employer’s obligations and helping you draft employee contracts.
In most cases, employers pay National Insurance contributions of 13.8% on employee salaries above £8,112 p/a, whilst employees pay 12% on salaries between £8,060-£42,385 p/a and 2% thereafter.
Employees from the EU and several other countries may choose to pay social security contributions in their ‘home’ country if they are temporarily posted to the UK for a period less than two years.
Eligibility to work in the UK
Non-British Nationals, regardless of their origin, should apply for a national insurance number directly with the UK government: https://www.gov.uk/apply-national-insurance-number
Employee expenses and benefits
When an employer reimburses an employee for business expenses suffered personally, or provides an expense account this should be declared on the individual’s personal tax return and may be taxable. It is possible to apply for a dispensation from HMRC to waive this requirement.