Taking on employees

People employed by the company must be paid the national minimum wage and are entitled to a contract of employment. We can help you with entitlement to things like holiday entitlement, sick pay, maternity pay and the like. As an employer you must also pay an employer’s national insurance contribution on any wages or salaries.

In order to pay over the tax and national insurance you have deducted from employees’ wages and the national insurance you must pay as an employer, the company must register as an employer with the Inland Revenue.

On a monthly basis (or quarterly if you are small) you must pay over to the Inland Revenue the tax and national insurance you have deducted and that you are due to pay. At the end of each tax year you must provide your employees with certificates of tax deducted (called form P60) and must make an annual return (called a form P35) to the Inland Revenue. The form P35 summarises all the tax and national insurance for each employee and the amounts paid over and is a check that everything that should have been paid was paid.

Our payroll service enables an employer to make payments to the employees electronically (avoiding the need to raise cheques) and we can pay the Inland Revenue on your behalf. We also complete most of the work involved in the preparation and submission of the form P35 and forms P60.

From 2009/10 the Inland Revenue expects all employers to file their annual returns electronically and are giving cash incentives in the meantime to those employers who register early for the new scheme and who file in this was from 2004/05.