Efficient, accurate, and timely managed payroll services in the UK

A business opts for managed payroll services primarily because of the lack of sufficient time, resources, or internal expertise to handle this critical function effectively. Payroll management is crucial to maintain accurate financial records and ensure employee satisfaction and compliance with tax regulations. While numerous tools are available for payroll automation and management, businesses overwhelmed with their core operations may find it challenging to dedicate the necessary attention to payroll. In such cases, outsourcing payroll to specialists like Lyel Accountants can be a strategic move.

The optimal frequency for paying employees varies depending on the employment structure within your business. Different types of workers, such as full-time, part-time, temporary, and freelancers, often have unique contractual obligations and payment needs. It’s totally up to you to establish a pay cycle that aligns best with your business model and the varied needs of your workforce. We can help you to work through this to identify what is going to be the best option for your business.

A monthly pay cycle is generally viable, especially as it offers more time to manage and process payments thoroughly. However, you could also make bi-weekly payments, provided you have the resources to support such a pay cycle. Why not get in touch with us to discuss this in detail?

HMRC uses the PAYE (Pay As You Earn) system in the UK to collect Income Tax and National Insurance (NI) contributions directly from employees’ wages or pensions before they receive them.

Employers deduct these contributions based on the employee’s tax code and earnings, ensuring taxes are paid incrementally throughout the fiscal year, reducing the burden of a lump sum payment. This is known as Real Time Information (RTI) and is a government programme to make both the recording and collection of tax easier.

Yes, you’re legally bound to file your tax return. You won’t receive tax returns from the taxman if you don’t have any taxable income or assets other than what your job provider has already paid through PAYE.

One exception to this rule is if you receive a salary of over £50,000 per annum and also receive child benefit where you are required to complete a tax return to enable the government to reclaim part or all of the benefit payment.

If you feel you no longer need to complete a tax return, you can find advice here on what to do: https://www.gov.uk/self-assessment-tax-returns/no-longer-need-to-send-a-tax-return

A PAYE bill might include:

• Income tax deductions
• Student Loan repayments
• Class 1 and 1B National Insurance
• CIS deductions
• Apprenticeship levy payments

There are numerous reasons why but the most common is because you’re taking a lower salary than your previous employment. Your salary has shifted from a higher to a lower taxable income rate. Some or all of the extra tax paid on a higher tax rate will be refunded to you in your salary account.

This can also happen if you have started employment and been on an emergency tax code which is higher than the one you should be on, or if you have multiple part time jobs where the employers are unaware of the other income you are receiving.