Free Advice
Your legal responsibilities:
If you employ in the UK and you pay your employee more than £116 per week (tax year 2008/2009 and after the changes to free pay limits effective 7th September 2008) the law requires you to:
- Register as an employer
- Set up and operate a PAYE (Pay As You Earn) scheme on your employee's behalf
- Keep tax records on their behalf
- Provide your employee with regular payslips
- Provide them with an employment contract
- Pay regular income tax and National Insurance Contributions
- Pay employer's National Insurance Contributions
- File an employer's annual tax return
These obligations also apply:
- If your employee has more than one job
- In short-term employment (i.e. a week or longer)
- To any employment taking place in the UK - irrespective of the country of origin of the employee or employer
Failure to register as an employer if you are paying your employee above the weekly threshold is an offence, which can potentially lead to heavy penalties.
Consider the following:
- Failure to file employer's annual returns by 19 May can result in penalties of £100 per month filed late
- Failure to pay all tax/NI liabilities before 19 April results in interest being charged on the amount outstanding.
All these legal obligations can be not only complex but also time-consuming, especially for a first-time employer. Without working knowledge of the tax system and current employment law, you may be entering a minefield. Dolphin Payroll Services can take full responsibility for processing your payroll accurately, on time and with full compliance with current payroll legislation.
Our services are extremely cost effective. Why not check out fees page for an online quote.