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.

Group of employees: enjoying employee benefits and tax relief
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Employee benefits and tax

A guide to tax rules on employee benefits, including bonuses, commission, share schemes, childcare and employee gifts, and how they affect PAYE, payroll and P11D forms.

People sitting around a large table with the word bonus written on it viewed from above
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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.

Time sheet for calculating payroll
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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.

Small business team taking advantage of employment allowance
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Employment Allowance

Tax advice for UK employers: how to claim Employment Allowance and reduce the amount of employer’s Class 1 NICs you pay.

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 - which means you pay tax on it.

Man in a blue shirt calculating his tax with a stack of money beside him
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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

Check your payslips show the right information, including tax and NI deductions on the UK Tax Calculators website.