• Home
• Getting Started
• Limited Company
• Sole Trader
• Glossary
• Ask Frank
• Free System
• About

Glossary

• Accounting Records
• Annual Return
• Capital Allowances
• Class 2 & 4 NI
• Companies House
• Corporation Tax
• Costs
• Depreciation
• Dividends
• Drawings
• Fixed Assets
• Form CT 41 G
• Form CT 600
• Form P35, P14, P11D
• Form SA100
• HMRC
• Income Tax
• Invoice
• PAYE
• Payment On Account
• Payroll
• VAT - Overview
• VAT - Register
• VAT - Schemes
• Year End

Payroll

It is possible to pay either yourself or somebody who works for you a salary without having to inform HMRC or set up a PAYE scheme ( Pay As You Earn ).

However, if the amount that somebody earns goes over the figures outlined below then you are required to contact HMRC to set up a payroll scheme for your business:

• Weekly - £95
• Monthly - £412
• Yearly - £4,940

( 2009-2010 tax year figures )

Being responsible for a firms payroll scheme can be quiet a large burden as it involves you acting as a tax collector on behalf of the government!

Once you pay employees more than the above amounts then you are required to deduct a percentage of their earnings to pay their income tax and National Insurance liabilities.

This money is paid to HMRC on a monthly or quarterly basis and you are required to submit monthly and yearly returns as evidence you are running the scheme correctly.

Terms and Conditions, Privacy, Legal Details
2009 - 2010franklyaccounts.co.uk - brought to you by: CheapAccounting.co.uk