In the UK’s Pay as You Earn (PAYE) system, it is the obligation of the taxpayer to ensure that any payments to HMRC are made on schedule. HMRC won’t send notifications or letters when a payment is due, so ensure you keep on top of the deadlines. For monthly PAYE payments, your bill should be paid before the 22nd of the following month and if you do quarterly payments, your PAYE bill is due every 22nd at the end of the quarter.
Information to include in your PAYE bill
Here is the list of reports that you must include while paying your bills to HMRC:
- Income Tax deductions of employees
- National Insurance of Class 1 and 1B
- Repayments of Student Loan
- Class 1A National Insurance on termination awards and sporting testimonials
- Deductions made on Construction Industry Scheme (CIS)
- Your Apprenticeship Levy payments (beginning from April 2017) when you, or managers you’re associated with, have a yearly pay bill of £3 million and more.
You can take the amount of PAYE tax you’ve paid on your payslip. You can see it adjacent to your student loan repayments and National Insurance contributions.
Different Methods to pay your PAYE Bill
As per HMRC, you can pay your due PAYE bill with different modes of payment as listed below:
Paying on same or next day
- Online or telephone banking (for Faster payments)
- With your bank account
Paying in 3 to 5 working days
- Through debit card or company’s credit card
- Through Cash or Cheque
- If you have set up, then through direct debit.
- You can send the cheque through direct mail.
HMRC will impose interest on all missed PAYE taxes (Class 1 national insurance contributions (NICs) and student loan deductions). HMRC can impose a fine in the case when Employers don’t pay what they owe in full.
Late payment charges were used to apply at the end of the tax year, in the past. However, nowadays, interest on late PAYE payments is charged at a daily rate of 2.75% on the unpaid amount.
Accurately handling Payroll Processing
Running payroll precisely is important. Other than HMRC’s Basic PAYE Tools program; you can use payroll software to manage business’ payroll necessities.
In any case, it is critical to see how the PAYE system functions, and to not depend too intensely on technology. On this matter, please have a conversation with Zyla Accountants before settling on any choices.
How can Zyla Accountants help?
Zyla Accountants can deal with your regularly scheduled payroll or guide you to manage it yourself. It truly is simple. We can advise you on setting up a pension under auto-enrolment and your monthly filing commitments.
We use Brightpay Software to handle the payroll processing of our clients. BrightPay is an HMRC approved, cloud-based payroll software that can handle all RTI submission types. It includes full auto-enrolment functionality.
Let’s explore how we can assist you!
Contact us at:
Call: 0208 089 5177
Mail: [email protected]
The UK government has announced a 1.25% National Insurance increase to spend on the NHS and social care. Prime Minister Boris Johnson introduced new tax plans for employees, businesses and a few investors. It is an attempt to improve social care and health care funding issues. It will become a separate and permanent health and social care levy after April 2023.
In his defence, Prime Minister said “the global pandemic was in no-one’s manifesto; It would be wrong for me to say that we can pay for this recovery without taking the difficult but responsible decisions about how we finance it,”. Although, it has incensed some of his party members by breaking an election promise.
From April next year, the NICs will be raised by 1.25% for employers, employees and self-employed workers for just a year. It will include Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs. Those who are above the State Pension Age won’t be affected by these changes.
People who are above state pension age and earning profits from self-employment or employment income of more than or equal to £9,568 will also be charged.
Administered by HMRC
This whole process of charging and collecting levies will be handled by HMRC with the same framework of collections for NICs; PAYE and Income Tax Self Assessment.
Individuals from England, Scotland, Northern Ireland and Wales will have to pay levy contributions the same as national insurance.
During the tax year 2023-24, levy commitments should point out as a different section on payslips. Wherever it is possible in the payslip, a conventional message should be incorporated for the following tax year (2022-23). More data on payslip prerequisites will be accessible at the forthcoming time.
What do experts have to say about this decision?
Deputy Director at the IFS, Helen Miller, said: “Levying lower rates of tax on the incomes of the self-employed than of employees is unjustified, unreasonable and inefficient. Today’s NICs increase the gap and therefore move the tax system further in the wrong direction.”
Deputy Director at the IFS, Carl Emmerson also commented that “There is no good economic reason to start a third tax on income. The government could have simply achieved its aims without adding the complexities that come with having a third tax. In the short run, the extra revenues could be used on boosting health and social care spending. In the long run, hypothecation is an illusion.”
The rise would target young people, supermarket workers and nurses, instead of those with the “broadest shoulders” who should pay more, said Labour Party’s, Keir Starmer. This health and social care levy will help the sectors to recover from pandemic-struck money shortage.
For more information, contact Zyla Accountants at:
Call: +44 7535 6176 81
Mail: [email protected]
The accountancy industry is on the brink of a major revolution. New technologies, apps and processes have been developed. They can change the fundamental nature of how we work with numbers forever.
The core profession will remain but several new roles are likely to emerge as these developments gather pace over coming years.
Recently, the Zyla Accountants’ team attended a first-ever Digital Accountancy Show. It was held at the amazing Tottenham Hotspur Football Club stadium in London. The £1bn stadium has a capacity of 62,062 making it the third-biggest stadium in London.
What was the event all about?
At the Digital Accountancy Event, we learned how professionals can best embrace and implement these new technologies, applications and cycles which when utilised accurately will change your efficiency, and make better customer encounters.
It was a first-ever accounting event that focused on bringing together leading industry leaders, tech companies, and innovators. This event seeks to inspire continued innovation through knowledge sharing across the entire accounting industry. A unique platform for learning with free entry into both the expo hall and theatres!
Who else joined the Digital Accountancy Show?
Our Cloud accounting partner Xero also attended the event and their representatives shared some great industry insights and MTD related ideas with other accounting professionals and business owners.
Our Intelligent Cash Flow Partner Fluidly’s CEO Caroline Plumb was also there and shared all the cash flow forecasting regarding knowledge that will help entrepreneurs take responsibility for their financial future to stress less and make cash flow forecasting less complex.
Our receipt capture partner Dext also attended the event, where the team shared some fabulous insights into the industry during their discussion.
Our payroll partner Brightpay was in attendance, Reducer who we partner with to give our clients the best deals on utilities were also there along with our practice management software Accountancy Manager and our Taxation software Taxfiler.
We met with Pleo, Connect4, Crezco, Hammock and Revolut who we hope to develop partnerships to deepen our tech offering.
To sum up:
This event helped Zyla Accountants and numerous others in learning the necessity of evolving with digitalisation in the accounting industry.
Zyla Accountants would like to show its gratitude towards the organisers and sponsors of this marvellous event. We got to learn several new things, like
- How to automate workflow easily,
- Why digital firms are 4 times more efficient than non-cloud based firms, and
- How live data can generate revenue streams.
For more information,
call us on +44 7535 6176 81 or
email us at [email protected].
Last year was tough for everybody, regardless of whether it was an SME or a large organisation. The COVID-19 emergency without a doubt carried a huge number of financial difficulties. Whether that be from staff shortage, working from home or recently set out guidelines by the UK government; these difficulties gigantically affected the payroll processing for SMEs.
Now, we can look towards a better 2021 with further developed cycles, prevalent payroll software, and a comprehension of the significance of the payroll.
Here we have mentioned 5 payroll trends to check out in 2021.
#1. Making the payroll process more agile
A major concentration will be on making the payroll interaction significantly more agile. Quicker and simpler payroll cycles can be accomplished by using two significant things: faster payments and automation.
These real-time quick payments are a huge improvement to the typical Bacs transmission, which in general require three days to process into bank accounts. Faster Payments mean the payroll team will be able to restore those three days to proofread to remove potential payroll mistakes.
#2. Automation will sustain payroll processing
Automation is not something new in the field of accounting but when it comes to payroll this will be a “new normal”.
Usage of automation can likewise carry many advantages to small businesses, particularly to those still dependent on old-fashioned paper-based payroll measures.
Whether it’s error notifications that decrease the danger of expensive over-payments, automatic bulk uploads of annual bonuses or automatic recalculation of sickness entitlements; not just automation saves time as well as further develops precision and consistency by lessening finance blunders.
#3. The use of cloud technology in payroll has grown
Just like the case with various cloud-based applications, cloud-based payroll tools have seen immense growth lately, with 38% of SMEs presently using the cloud, as per CIPP. This steady development proposes that 2021 is probably going to be the year that cloud-based payroll turns into a business fundamental. With cloud-based accounting, your staff can access the reports from anywhere and any place. A more proficient, adaptable and coordinated method of working.
Payroll teams can access real-time data and give their feedback for better decision-making and accurate reporting.
#4. Data security and compliance necessary to support remote working
Each organisation holds delicate and personally identifiable information, and most of this is inside payroll and HR frameworks. Payroll groups handle employee information every day and have an obligation to cut down chances for information to be seen by some unacceptable individuals or affect somebody’s protection.
Having solid data security and ensuring data compliance should be the main concern and trend for payroll trends in 2021.
Numerous companies are searching for additional insurance, like utilizing two-factor authentication (2FA) for communication and internal systems. Utilising additional security features is extraordinary for fortifying the username and password model. It’s an additional layer of insurance to ensure online records are secure.
#5. Furlough Scheme
The furlough scheme has been extended until September. As numerous SMEs will battle to get back to their past standard of business, this scheme will help them as they improve their client base.
As a business, you should be ready to pay your worker’s wages. You can expect this by surveying how you would create adequate income to make everything back on track. Expert payroll services providers can assist with giving continuous information and projections to assist you with settling on the best choices for when the furlough ends.
To sum up:
Albeit 2020 is behind us, obviously the effect of COVID-19 will keep on impacting payroll trends all through 2021 and more.
It’s taken a worldwide pandemic for payroll processing to acquire the consideration and understanding that it genuinely needs, and this change will be further developed by payroll tech, employee training and by leveraging a Payroll Service provider like Zyla Accountants.
To discover how Zyla Accountants can assist with supporting your payroll processing all through 2021, reach out today.
0208 089 5177
Also read: Caroline is the newest member to join the Zyla Accountants team!
Guaranteeing your business is financially proficient is more than just reducing expenses. Getting the best performance with the least waste requires customary audits & reviews of cycles, proper cash flow, and the right technology. For small business finances, some entrepreneurs might have knowledge in maintaining a business, many can be naive. As per a study done by Startups.co.uk in 2019, 50.6% of entrepreneurs surveyed believed that the number one barrier of a person while starting a business in the UK is handling finances.
When you accurately handle your financial situations, it sustains your company and reduces the chance of failure in the long term. Here we have mentioned some of the top tips to make your SME financially profitable and revenue-generating.
Continuously inquire “why?”
When your business has certain cycles, providers, expenses, clients, and different methods of doing business that has ‘always been like this’, then, this present time is the opportunity to put them under the magnifying lens.
If you’re investing a ton of energy pursuing payments and seeking business from clients that aren’t solid or don’t spend enough, then, at that point maybe it is an ideal opportunity to release them.
Your energy and time would then be able to spend on winning and supporting more profitable customers which should counterbalance any transient misfortunes.
Work together and communicate
We should urge our staff members to share data, team up on undertakings and communicate more. For instance utilise free doc sharing applications like Google Docs, where your staff can collaborate in real-time that can be seen by everybody.
Empower a culture of input and open conversation. This will guarantee any regions that require improvement can be red-flagged right on time, guaranteeing that there is no pointless wastage going on behind the scenes.
Outsource accounting and bookkeeping
Outsourcing accounting is an approach to get all the necessary help and supervision of accounting specialists when you need it.
This is particularly significant as your business scales and develops. You’ll get a learned team of expert accountants and bookkeepers. They use cloud-based accounting tools, so you never have to worry about your small business finances.
Improve cash flow management
For the constant growth of your business, good cash flow management is a necessity. As per a study done by Intuit Quickbooks, 57% of SMEs faced cash flow issues in the UK last year. Proper cash flow forecasting helps you stress less about the wrongdoings that’ll occur in the future. It also maintains a steady cash flow between customers and suppliers as well.
Recently, Zyla Accountants partnered with Fluidly to assist small business owners to get instant cash for streamlining their processes.
Review tax payments
“If you have trouble saving for your quarterly estimated tax payments, make it a monthly payment instead, that way, you can treat tax payments like any other monthly operating expense” – said Michele Etzel, CEO at Bayside Accounting Services.
With the current and old financial summaries, having an extensive business plan for the future will expand the organization’s believability.
Written plans help purchasers or investors with the affirmation that your business knows where it is going. In any case, it’s significant that any conjectures are upheld by definite presumptions.
How can Zyla Accountants help?
As a Xero-certified accounting and bookkeeping firm, we assist our clients in their accounting-related work. Offering guidance to work on the growth of their business.
We are committed to aiding small businesses to settle on more data-driven choices. Also, we streamline their organization’s workflow without draining their every last cent.
For more information:
+44 7535 6176 81