Archives for Salary

Christmas party

As hard as it is to believe, but provide your staff with social events and the tax man wants his cut.  Social events are declared on the employers P11d as a benefit resulting in a tax charge and you have to pay class 1a NIC on the total cost.

However, HMRC do have a bit of festive cheer and there are exemptions to this rule so that you can get a tax free social event.  To be exempt, the party or similar social function must be all the following:

  • £150 or less per head
  • annual, such as a Christmas party or summer barbecue
  • open to all your employees
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Taking on your first employee

As a business grows so do the demands on the owner.   For some this will lead to making the decision to hire their first employee.  But finding the right person is only the start of the process.  Before taking on your first employee take a look below at the additional requirements that you take on when employing people.

Employment checks

You have a legal responsibility to check that the employee has the right to work.  This could be as simple as checking a passport or as complicated as checking the right to work for an overseas worker.

 

Payroll

The new employee will want to get paid (and not paying less than the minimum wage is definitely not an option!) so you will need some form of payroll.

This will require registering for PAYE with HMRC and then processing the payroll every time you pay someone.

Running a payroll involves calculating the Tax and National Insurance, calculating what is left to pay the employee, issuing payslips to show these calculations and submitting returns to HMRC with these calculations.

 

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