Payroll for Business

Our payroll services cover all necessary administrative requirements including workplace pensions or Auto-Enrolment as it can be referred to. We will submit reports to the appointed pension administrator when payroll is run and the deductions will be paid over directly. Employees will be contacted directly by the pension administrator so that between us we handle enrolment, opting out and the deductions.

Outsourcing your payroll can allow you reduce the amount of time you spend on you regular payroll and pension duties, allowing you to have more time to focus on running your business. We are able to not only process your payroll but can also assist with processing payments, uploading payslips, managing pension duties and uploading the pension contributions, having a key focus on your business needs and bespoke requirements where possible. Our payroll bureau undertakes regular training to ensure their knowledge on the changing legislations and requirements are up to date. We are also able to ensure a continuity in payroll services in the event of holiday, sickness or departure of you inhouse payroll processor. Using a payroll provider to process your payroll can not only give you these advantages but it can also give you peace of mind that your payroll is being processed to the highest standard.

The payroll obligations of small businesses will depend on the structure of the business.

A common setup is for small businesses to operate as a limited company, with the owner usually holding both the position of shareholder and director of the company. As a shareholder, owners can extract profits as dividend income and, if appointed as a director or office holder, can also be remunerated through a salary or bonus package.

Any dividends paid do not need to be included on the payroll but are subject to income tax at the dividend rates and will need to be declared on a self-assessment tax return. Directors are classed as employees and any remuneration paid is subject to tax and National Insurance as employment earnings. Where the remuneration paid exceeds the National Insurance Lower Earnings Limit (LEL), you will need to register as an employer with HMRC and operate payroll. It may be beneficial to pay dividend and tax, though you should seek advice to obtain the best tax position.

For sole traders and partnerships, any profits of the business are usually taxable on the proprietor/s as self-employed earnings and do not need to be included through payroll. Payroll may still to be operated for any employees of the business.