What is PAYE?
PAYE or Pay As You Earn is the system used by HMRC (Her Majesty’s Revenue & Customs) to collect Income Tax and National Insurance Contributions (NICs) from employees as they are paid. As the employer, you are required to deduct the tax and Employee’s NIC from your employee’s gross wage each time they are paid.
The tax and employee’s NI, along with the Employer’s Class 1 NICs, are paid by you, the employer, to HMRC. These payments are sometimes referred to as liabilities. Most domestic employers pay liabilities quarterly and payment must reach HMRC by specific deadlines. Please refer to the Rates and Thresholds page for the liability deadline dates.
As part of the PAYE scheme, the employer is now also required to report to HMRC every time they pay their employee as part of the new Real Time Information (RTI) reporting system.
How can we help?
When you subscribe to Enable Payroll, we set up a PAYE scheme and act as your Payroll Agent so all HMRC correspondence and paperwork will be sent directly to us to deal with on your behalf.
We will notify you when payments are due or when we require any additional information about your employee for the purpose of completing and submitting forms - such as a P45 or your first Full Payment Submission - to HMRC.
If you receive any correspondence directly from HMRC at any time, then please send these straight to us. This is part of our service and is covered by your subscription. It also avoids any confusion which can arise when three separate parties are involved.
Enable Payroll has a unique and very strong relationship with HMRC, with one dedicated tax office dealing with all our clients, who are familiar with domestic employment issues. As a result, we are able to provide a seamless service without any of the problems that often arise when dealing with several different tax offices who are unaccustomed to the particular needs of domestic employers.