In recent years payroll has become more burdensome on businesses with the introduction of regular electronic filing and auto-enrolment compliance. This is likely to increase when state benefits such as tax credits are aligned to the payroll.
More and more of our clients are outsourcing their entire payroll function. Many have seen savings in staff and software costs, not to mention the peace of mind of knowing that staff will be paid on time and deductions calculated correctly every time.
Free up your time to grow your business or do more of what matters to you
It has become prudent for businesses to have correctly trained and qualified staff to manage their payroll responsibilities. An added benefit is you will no longer need to recruit and retain accounting staff, or arrange holiday and sickness cover.
Our qualified staff can assist with the payroll process and also provide PAYE advice when required. This could be on the termination of employment or a strategy to offer tax efficient incentives to employees.
Benefits of using our specialist service:
- Fully analysed payslips (provided in security envelopes or via a secure online service)
- Different payment methods (including BACS)
- Statutory sick, maternity and paternity pay calculations
- RTI compliance for pay period and year end
- Auto-enrolment compliance and pension provider reporting
- Calculation of class 1 National Insurance contributions
- Assistance with P11D's (benefits in kind)
- Specialist payroll advice (employment termination, tax efficient benefits)
- Overseas payroll compliance
- We accept payroll information delivered by email and will process in 48 hours
Different because you are
We pride ourselves in providing individually tailored services to our clients. Whatever your aspirations and priorities in business and life, we will be by your side with expert advice from local specialists. It is because your needs are unique, that the solutions we provide are distinct and personalised to you.
Get in touch to discuss how we can help lift the burden of payroll and the benefits to you and your business.
How easy is it to change accountants?
It is generally very straightforward to move to Lovewell Blake from another accountant. We will write to your previous adviser for professional clearance and also obtain copies of selected historic information such as last years accounts and tax references. We will then issue a letter of engagement and register as your tax agent direct with HMRC.
Can Lovewell Blake handle all my workplace pension requirements as well as the monthly payroll administration?
Our payroll services cover all necessarily 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.
Should I pay myself a salary or dividends?
If you operate a limited company, are a shareholder and have profit reserves, you could pay a dividend to shareholders. If you are doing this for tax planning purposes be careful of how all shareholders are treated, especially if they are family members and not actually working in the business.
Anyone receiving dividends can utilise the dividend allowance which means the first £2,000 received is taxed at 0%. Over £2,000 the basic rate tax charge on dividends is currently 7.5% with higher and additional rates for higher earners. Salaries incur PAYE and Employees National Insurance contributions. Employers also pay Employers National Insurance contributions. Whilst companies will receive corporation tax relief on these costs (which would not be the case for dividends) the comparative cost can often be higher than the dividend route.
Whether or not it will be beneficial for you to pay higher dividends and lower salaries will be a matter for review. There is no simple rule which will apply to all and with higher taxes on dividends the decision is much more negligible than it has been in the past. Much will depend on your other income, role in the business and corporate structure of your company.
Taking a step back though, if you are starting in business you may want to review your choice of business structure first. Consider the cost of operating a limited company and the benefits of limited liability. See how these balance with potential tax advantages and make an informed decision. We can help with these discussions, allowing you to enter business with your eyes open.
Book a meeting with one of our specialists to discuss how best to structure your business and remuneration strategy.