* IR35 was first propsed in 1999 and was introduced into UK legislation in 2000. The primary aim has been to prevent the avoidance of tax and national insurance by trading through an intermediary (commonly a limited company) rather than being an employee. Prior to IR35, individuals could form a limited company and invoice their [read more]
Payroll record keeping*Once a payroll is in operation, HMRC lay down certain requirements as to what records and information needs to be kept. These include: employees names, addresses (and their dates of birth) gross pay, NICs, PAYE, other deductions, net pay (keeping a copy of their payslip would normally satisfy this requirement, assuming the payslip contained all [read more] |
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How to Register as an Employer*It is generally possible to register as an employer by telephone or email (if special circumstances apply, you may have to register via and HMRC office). Either way, you will need the following information to hand: general information about yourself and your company (including your national insurance number and UTR number – unique taxpayer reference [read more] |
 When to Register as an Employer*As soon as you take anyone on where any of the following conditions apply, you need to register with HMRC as an employee. the employee already has another job the employee receives a pension (state or occupational) the employee will earn at or over the PAYE (tax) threshold the employee will earn at or over [read more] |
Change in Company Car Fuel Rates*From 1 August 2007, HMRC are changing the fuel rate for company cars (which is the fuel element of the mileage rate). Unfortunately, the mileage rates themselves are not changing. * |
Other Employee-Related Costs*Here are some other employee-related costs: “Overhead” costs of office accommodation. You will still have a certain amount of costs even if they work from home, such as phone call costs, an internet connection, travel and possible contributions to heating and lighting. Depending on your business, cover for holiday, sickness and absence. Initial training. Ongoing training and [read more] |
Pensions and Benefits in Kind*On top of their pay, you may offer your employee “perks” such as a company car, clothing allowance, relocation expenses, childcare vouchers and private health insurance, to name a few. Some of these benefits will be taxable in the hands of the employee: that is, the employee will have to pay tax on the financial benefit [read more] |
