PAYE – Pay As You Earn Tax
Calls cost 7p per minute, plus your operator’s access charge. This is a call forwarding service which will connect you directly to the official helpline for all PAYE enquiries, also accessible here. We are not associated with HMRC.
If we are going to speak about PAYE tax we should first explain HMRC, because they are the enforcer of Income tax. HM Revenue and Customs regulate and monitor tax payments from across the UK. For all general enquires regarding the PAYE system, tax codes, paying income tax and more, contact HMRC PAYE using the telephone number above. This unofficial phone number will connect you directly to an advisor who can answer any questions you may have about the service or Income tax.
HMRC, or HM Revenue and Customs is a non-ministerial department of the government that has authority over tax, payments and customers in United Kingdom. Purpose of HM Revenue and Customs is to deduct money from public service workers in UK and channel it to individuals and families that are in need of financial support. In this article we will talk about PAYE, or ‘Pay as you Earn’, in order to provide helpful information to individuals or business owners who are looking for further information about this type of tax.
PAYE for Businesses
Every business in UK must pay PAYE tax, and businesses that have less than 250 employees can do that via cheque. Check must be sent to HMRC:
If an owner has more than one business then they can make a single payment using CHAPS.
As an employer you need to use the PAYE online service to send payroll reports to HMRC, to access tax codes and notices about your employees, appeal any penalties, receive alerts from HMRC when you report or pay late or don’t send the expected number of reports in a month and to register to get email reminders for alerts and notices.
When you register as an employer online, you will be given login details that you will need to keep safe. If you have registered in any other way then you will need to enrol for PAYE online separately. If you have any questions regarding your PAYE online account, then contact HMRC and speak with an advisor using the tax office telephone number above.
You can send payroll reports online easily using HMRC’s PAYE online service. Log in with your account details using your payroll software. Your account can be accessed online to view previous payroll reports and any outstanding payments from your account. Unfortunately, the PAYE online system cannot be used for payroll reports except for expenses and benefits returns like P46 (Car), P11D and P11D(b).
Your online PAYE account will display information regarding your employees including:
- Tax code notices (P6 and P9)
- Student loan notices (SL1 and SL2)
- National Insurance verification notices (NVR and NOT)
- Late reporting and late payment alerts
You may be exempt from reporting online if you’re prevented from using a computer on religious grounds, you are getting care or support for yourself or a member of your family, you’re unable to pay electronically due to an illness, disability or lack of internet. If this applies to you then you may qualify to report on paper instead of online. Call HMRC PAYE on the telephone number above to speak to someone about reporting on paper. An advisor will direct you on the process and answer any questions you may have.
Usually, you will need to register as an employer once you start to employ staff into your company. It is important to note that you must register before the first payday and it can take up to two weeks for registration to complete. You will not be able to register beyond two months before you start paying your employees. If you are employing yourself, for example as a director of a limited company, then you will need to register as an employee of yourself.
You can operate PAYE by either paying a payroll provider to run it for you or by running it yourself using special software. If you are thinking to pay a payroll provider, like an accountant, you will need to realise how much support you need. Ensure that your keeping records of your employees details so that your paying payroll provider can run payroll for you. Some accountants and payroll providers offer more support when it’s needed. If you are finding it difficult to keep up-to-date with paying pay slips and making payments to HMRC.
To pay your employees for the first time there are a couple of steps you need to adhere to. First, you need to register as an employer with HMRC and get a login for PAYE online. Then pick your payroll software and calculate any pay deductions to report to HMRC. It’s important to collect and keep records of your employees for HMRC. Then you need to ensure that you are recording employers pay and making deductions on or before the first payday. Then ensure that you are paying the correct tax and National Insurance to HM Revenue and Customs.
If you have any questions regarding your individual Income tax, contact the HMRC helpline on their local rate number:
0300 200 3401
This line can only be used for general advice about payment of employer’s’ PAYE and about payslip booklets and how to order them. This number can’t be used for any payments. If you want to contact HMRC on this number you will need a reference from the Accounts Office.
Pay your employees PAYE via the methods listed below. It’s important to pay this on time (the 22nd of the next tax month if you pay monthly or the 22nd after the end of the quarter if you pay quarterly and by the 19th of the month if you pay by cheque) otherwise you may be subject to penalties or interest on your payment. Fast payments clear either the same day or next day through online or telephone banking or CHAPS.
These methods of payment usually take around three working days to be recorded:
- Debit or credit card online
- Bank or building society
- Post Office
- Direct Debit (if you’ve already set one up)
- Cheque through the post
If you have not set up a Direct Debit and this is the method you wish to pay with, allow 5 working days for this to reach HMRC.
To pay at your building society or bank, you will need to get your hands on a payment booklet from HMRC. To get a payment booklet you will need to contact HMRC using the telephone number above and request a new payment booklet. If you make two or more online payments per year, HMRC will stop sending you your payment booklets.
PAYE for Individuals
Please view our section on individual tax and income tax, which will help you find answers to any enquiries about personal PAYE including tax codes, over-payments, rebates and more.
For everything regarding PAYE service, payments, Income tax, National Insurance contributions and general enquires, contact HM Revenue and Customs to discuss this further. The tax office will be able to advise you on the next steps to take, answer any questions you may have and assist you with your PAYE payment.