You are obliged to have, and to operate correctly, a PAYE Scheme registered with the Inland Revenue if:

• You are a Limited Company
• You employ anyone who earns more than the laid-down minimum weekly pay (including members of your own family)
• You employee someone who has another job, and you pay them more than £1 per week
• Your employees are over 16 years of age (people under 16 are exempt)

You need to record and keep the following information:

• Details of Gross Pay
• Details of any Income Tax deducted or refunded
• Details of employee National Insurance deducted
• Details of employer National Insurance liability
• Personal details relating to the employee

If you would like us to assist you in keeping these records for you, please contact us so we can discuss further what information we need from you, and what we can do for you!

There are a number of correspondence document items that are needed when processing Payroll:

• Bank statements covering the entire month
• Cheque books and paying-in books for entire month
• Cash Income; details of your sales if not directly banked intact
• Cash Expenditure; receipts for all items paid by cash rather than by cheque
• Purchase invoices for stock and overheads
• Sales Invoices
• Details of any new loans, etc.
• Details of monies introduced by you and the source from where they came (private account, pension, family loan etc)
• Details of monies (including dates) taken by you for personal use
• Details of any bills paid direct by a third party
• VAT Returns (if appropriate)
• Records of wages paid (if we don’t operate your PAYE Scheme)
• Sub-contractors deduction certificates and any other tax documents

There may be other documentation that may be required, depending on what type of business you run -- we can advise you on what documents will be required.

You may find the following links useful:

• Wikipedia: Payroll
• Wikipedia: P.A.Y.E.
• HM Revenue & Customs: P.A.Y.E. Returns
• Directgov: Tax Credits

If you'd like to discuss matters further with us, please contact us!