In a nutshell
As an employer operating PAYE, you need to keep a record of what you pay your employees and then submit them to HMRC in a Full Payment Submission (FPS) each tax month (5th of one month to 6th of the next month).
What do I need to record and do?
Every time you pay your employees, you’ll need to do a few things:
- Record their pay – salary or any other payment
- Calculate deductions – tax and National Insurance.
- Calculate the employer’s National Insurance contribution that you’ll need to pay for earnings above £242 a week.
- Produce payslips for each employee. You can use software to automaSend this on or before your employees’ payday.
- Use payroll software to submit your FPS to HMRC. You’ll need to enter your PAYE reference and Accounts Office reference in your software. You should have received this from HMRC when you registered as an employer.
How to submit an FPS
Use a payroll software. You’ll need your PAYE reference and Accounts Office reference. See the HMRC guidelines on what to pt in each field on an FPS.
When to submit FPS
Send the FPS on or before your employees’ payday. Enter the usual date that you pay your employees, even if you happen to pay them earlier or later because of a Bank Holiday or something.
How can I view how much tax and National Insurance I owe to HMRC?
You can use your HMRC online account to view how much tax and National Insurance you owe to HMRC based on your FPS submissions.
Other notes
- You can claim reductions on what you’ll owe HMRC (e.g., statutory pay) by sending an EPS by the 19th following the tax month.