Payroll and benefits

As well as your legal obligations, you’ll want to ensure that payroll is painless and that you use any opportunities to improve your tax-efficiency.

Payroll and benefits - overview

If you have employees, you'll almost certainly be required to operate PAYE to collect income tax and NI contributions. Our guide to the basics.

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Employee benefits and tax

Employee benefits can be complicated. You need to ensure that your payroll systems deal with employee benefits properly and report in real time.

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Introducing incentive pay - checklist

Pay is an important issue for you and your employees. Incentive pay can form a key part of that offer if you get your incentive pay scheme right.

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PAYE and RTI

You are legally obliged to operate PAYE for any employee with an income above the lower earnings limit.

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PAYE penalties and appeals

Find out about how RTI penalties could apply to your business, depending on how many people you employ in each PAYE scheme, in this HMRC factsheet.

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Payroll

HMRC expect you to file pay information accurately and on time - and employees also won't be happy if they aren't paid correctly. Managing payroll.

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Employment Allowance

The Employment Allowance reduces the amount of employer’s Class 1 NICs payable. Find out how it works, who qualifies and how to claim.

Car fuel guage - Mileage allowance tax rates
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Q&A: Mileage allowance tax rates

Tony Shanks of Tax Rebate Services provides useful advice on how to make sure you and your employees aren't missing out on mileage tax allowances.

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Construction Industry Scheme

The Construction Industry Scheme (CIS) affects businesses involved in construction and some businesses which spend large amounts on construction.

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HMRC company car tax calculator

When a company car or van or fuel for private use is made available to an employee, there is deemed to be a benefit in kind, ie you pay tax on it.

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HMRC Tax checker tool

You can visit the HMRC website to use a handy online tool to check whether employees have paid too much income tax under the PAYE scheme.

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Payslip checker tool

To ensure payslips show the right information, including tax and NI deductions, visit the UK Tax Calculators website to use an online payslip checker.