In my latest blog I take a look at employing people, the obligations you will face as an employer and some of the handy ways of managing the compliance burden.
When you take on a member of staff for the first time (or if you have a limited company and propose to pay yourself) you will need to register with HM Revenue and Customs (HMRC) as an employer. This can be done online via the Government Gateway service. Once enrolled you are obliged to report to HMRC on a periodic basis the people you employ, how much you are paying them and the amounts of PAYE and National Insurance you deduct from their salaries.
You must issue your employees payslips at each pay run, together with end of year P60 forms. When an employee leaves your employment you must also issue a P45. Equally, new joiners will present a P45 to you which contains details of tax paid to date. Administration of the scheme is not always straightforward and can be semi-automated by purchasing computerised or online payroll software. HMRC also provide a simple tool for those with only a few employees.
I strongly recommend that you invest in assistance in administering your payroll scheme. Getting it wrong can cause significant headaches for you and your employees and you can lose significant goodwill with your staff. Invest in a software package or consider outsourcing the entire payroll function to an external bureau.
All employers now also need to comply with Workplace Pension Regulations. Employers must have an auto-enrolment scheme in place and automatically enrol staff on the scheme. Deductions from salary and matched contributions funded by the employer are paid to the pension provider with each pay run. Penalties for non-compliance are potentially significant so get yourself organised early and speak to a specialist. Lovewell Blake Financial Planning
can handle the entire process for you.
Employing people is not just about the administration and tax though. Make sure you have an HR resource you can call upon for matters such as contracts of employment, disciplinary proceedings and management of staff absences. At Lovewell Blake we have a team of HR Consultants who can oversee your entire function or just help when you need it.
The most important advice I can give you is to get organised early. With RTI reporting, Workplace Pensions and the many hurdles around Human Resources you cannot afford to stumble into the demands of employing others. Get in touch if you would like to discuss your requirements and how Lovewell Blake can help.