A project I've been running for a couple of years now, has suddenly become a lot more serious, and as a result I need to start paying people wages.
The project runs for 8 weeks during the year, and then only for 3 days each week.
We're going to have 7 people working for us during those 3 days per week, and each will be paid £184.80 a week.
I've registered for PAYE. But beyond that...well, I must admit I'm more used to being creative than book-keeping and I'm struggling to understand what I should do.
Can anyone give me advice on...
The next steps I should take with PAYE.
Whether it makes a difference that the people working for us will only be doing so on a part-time temporary basis.
What I do about NI?
Thanks to anyone who can help out (however frustratingly stupid I might be being).
sorry, the site doesn't work like that. You give all of the advice for free on the site so that when someone asks a question you are not answering just that person but rather everyone who may have a similar question but has not asked it on the site.
The links to your website have been removed but you can add your advertising back once you're a regular contributor,
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
James there are a number of ways to go about this, from buying some payroll software to outsourcing the work. I'm sure you would be able to run the payroll yourself but once you have paid for software, apprised yourself of the knowledge, got to grips with RTI and spent your time actually doing the payroll function, calculating ssp and holiday pay for staff who work 3 days per week, you may consider paying someone £25 per month (or whatever) to do all this for you.
Whether it makes a difference that the people working for us will only be doing so on a part-time temporary basis.
What I do about NI?
Thanks to anyone who can help out (however frustratingly stupid I might be being).
Hi James
It makes no difference whether you are running PAYE one week a year or 52, the process is the same.
You will need to get from your employees either a P45 form their previous employer, or a P46 if they haven't got one. This is just a form the employee fills out and determines whether they will pay tax on that £184.80.
I've attached one for you to use if needed.
As far as running the payroll is concerned you will need to outsource to a payroll company or install software to do it yourself. Moneysoft or 12pay are both excellent and cost around £70 inc VAT. HMRC do free software, and you may well find it adequate for your use. At the very least you could download it and have a play to see if you get the hang of it ok.
http://www.hmrc.gov.uk/payerti/payroll/bpt/paye-tools.htm alternatively there's a website called Payroo that does free payroll online for under 10 employees.
PAYE runs monthly from 6th of the month to the 5th of the following month. NI will need to be deducted from the employees pay (software will tell you how much) and handed over to HMRC, either by the 19th if paying via the book they send out or 22nd if paying online. Details of how to pay will have been sent to you when you applied to join PAYE.
You will be exempt from Employers NI this year as long as you tick the box that says you want to take advantage of the Employers Allowance. Moneysoft asks you this when you set up payroll, I'm not sure about the others.
You should issue all employees with P45s once the period you are employing them has finished.
Just one other thing to watch out for - your employees will accrue holiday pay during that 8 weeks, based on £184.80 it will be £159.21 per employee.
Don't worry about asking what you think might be stupid questions, it's a pleasant forum to be on.
