Payroll Questions
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Call us: +44(0) 783 595 3000
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Do I Need a P11D?
If you are registered for PAYE then a P11D will need to be completed and filed on or before 6 July. You can however apply for dispensation (P11DX). Once a dispensation is in place a P11D will not be necessary if you have only paid expenses which are covered by the dispensation. Dispensations do not normally get applied retrospectively. It is therefore advisable to get one in place as soon as possible so that a P11D does not need to be filed if not needed.
How Much Holidays Should I Give My Employees?
There is a minimum right to paid holiday, but you might want to offer your employees more than this. The main things you should know about holiday rights are that:
What If I Do Not Owe Any PAYE or NIC?
If you do not owe HMRC anything is PAYE and NIC for one month you still are required to submit a nil return. Green Accountancy will always do this for you without you needing to ask if we look after your payroll.
Why Do My National Insurance Contributions Fluctuate?
If your national insurance contributions seem to fluctuate this is likely to be because you are a director. This is because a director’s NIC is normally is calculated on a cumulative annualised basis, so that (in general) no NIC is paid in the first pay periods, until the annual threshold is reached.
Do I Need To Be Paid Through Payroll?
Directors pay must be through payroll (ie with PAYE and NI deducted) except for very exceptional circumstances. The only scenario where a director can invoice their own company is if the individual has a separate business already acting for other clients in a particular type of work and provides that service to the company. The example which HMRC provides is that of a practicing solicitor who is also a director of a retailing company, who provides some legal services to the company. However, any work that is of the nature of acting as a director cannot be invoiced and any type of work that you don’t already have a business in cannot be invoiced.
If the ordinary employment tests apply to you it is likely that you should be treated as a employee:
a. If the company controls the methods of work, you provide the services yourself and there is any notice period (including implicit) then you are an employee for this particular work.
b. If the individual controls the methods of work (software etc), provides a substitute worker occasionally and has no notice period then you may be self employed for this particular work.
If you “look like” an employee then you probably are an employee. Examples of this include being a named director, having a company email address, being a point of contact at the company, generally working in a similar way (location, times, methods) to other employees. However if you have lots of clients, your own equipment, business insurance and advertise your services (all relating to the work in question) then you may be self employed for this work.
What is the Minimum Wage?
For details of the current minimum wage please click here.
If you are registered for PAYE then a P11D will need to be completed and filed on or before 6 July. You can however apply for dispensation (P11DX). Once a dispensation is in place a P11D will not be necessary if you have only paid expenses which are covered by the dispensation. Dispensations do not normally get applied retrospectively. It is therefore advisable to get one in place as soon as possible so that a P11D does not need to be filed if not needed.
How Much Holidays Should I Give My Employees?
There is a minimum right to paid holiday, but you might want to offer your employees more than this. The main things you should know about holiday rights are that:
- Employees are entitled to a minimum of 5.6 weeks paid annual leave or 28 days for someone working five days a week
- Part-time workers are entitled to the same level of holiday pro rata (so 5.6 times your usual working week, eg 22.4 days for someone working four days a week)
- Employees start building up holiday as soon as they start work
- You can control when your employee take their holiday
- Employees should be paid their normal pay for holiday
- When employees finish working with you they get paid for any holiday they have not taken
- Bank and public holidays can be included in your minimum entitlement
- You continue to be entitled to your holiday leave throughout your ordinary and additional maternity leave and paternity and adoption leave
What If I Do Not Owe Any PAYE or NIC?
If you do not owe HMRC anything is PAYE and NIC for one month you still are required to submit a nil return. Green Accountancy will always do this for you without you needing to ask if we look after your payroll.
Why Do My National Insurance Contributions Fluctuate?
If your national insurance contributions seem to fluctuate this is likely to be because you are a director. This is because a director’s NIC is normally is calculated on a cumulative annualised basis, so that (in general) no NIC is paid in the first pay periods, until the annual threshold is reached.
Do I Need To Be Paid Through Payroll?
Directors pay must be through payroll (ie with PAYE and NI deducted) except for very exceptional circumstances. The only scenario where a director can invoice their own company is if the individual has a separate business already acting for other clients in a particular type of work and provides that service to the company. The example which HMRC provides is that of a practicing solicitor who is also a director of a retailing company, who provides some legal services to the company. However, any work that is of the nature of acting as a director cannot be invoiced and any type of work that you don’t already have a business in cannot be invoiced.
If the ordinary employment tests apply to you it is likely that you should be treated as a employee:
a. If the company controls the methods of work, you provide the services yourself and there is any notice period (including implicit) then you are an employee for this particular work.
b. If the individual controls the methods of work (software etc), provides a substitute worker occasionally and has no notice period then you may be self employed for this particular work.
If you “look like” an employee then you probably are an employee. Examples of this include being a named director, having a company email address, being a point of contact at the company, generally working in a similar way (location, times, methods) to other employees. However if you have lots of clients, your own equipment, business insurance and advertise your services (all relating to the work in question) then you may be self employed for this work.
What is the Minimum Wage?
For details of the current minimum wage please click here.