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By As an employer in the UK, one of your key responsibilities is managing payroll. This includes making sure your employees pay the right amount of tax and National Insurance contributions. The system that makes this possible is called PAYE — Pay As You Earn.
At TT Accountancy Services (TTAS), we help London businesses handle PAYE smoothly, ensuring compliance with HM Revenue & Customs (HMRC) rules while saving time and avoiding costly mistakes.
What is PAYE?
PAYE (Pay As You Earn) is HMRC’s system for collecting Income Tax and National Insurance contributions from employees’ wages or salaries. Instead of workers paying tax themselves, employers deduct it directly from their pay and send it to HMRC.
This ensures employees pay their tax in real time, rather than waiting until the end of the tax year.
How Does PAYE Work for Employers?
As an employer, you must:
- Register as an employer with HMRC
- Before you start paying staff, you need to register your business for PAYE.
🔗 Register as an employer with HMRC
- Before you start paying staff, you need to register your business for PAYE.
- Calculate deductions
Each payday, you calculate how much Income Tax and National Insurance should be deducted from your employees’ wages, based on their tax code. - Submit reports to HMRC
Employers must send a Full Payment Submission (FPS) to HMRC every time employees are paid. This shows how much each employee has been paid and the tax deducted. - Pay HMRC
You then pay the tax and National Insurance to HMRC — usually monthly, or quarterly for smaller businesses. - Provide payslips and records
Employers must give payslips to employees and keep proper payroll records for at least 3 years.
🔗 See HMRC’s payroll record-keeping rules
Employer Responsibilities Under PAYE
- Deduct the right tax and National Insurance
- Handle statutory payments (sick pay, maternity pay, etc.)
- Manage student loan repayments
- Report benefits in kind via P11D forms
- File year-end reports to HMRC
Failure to comply can result in penalties, fines, and HMRC investigations.
Benefits of Outsourcing PAYE to TT Accountancy Services
At TTAS, we take the stress out of PAYE management. Our payroll services include:
- Setting up PAYE with HMRC
- Calculating employee tax and contributions accurately
- Filing Real Time Information (RTI) submissions on time
- Producing payslips and year-end documents
- Advising on payroll compliance and staff benefits
👉 Contact TT Accountancy Services today for expert payroll support in London.
Understanding PAYE is essential for every employer in the UK. It ensures your staff are paid correctly and your business stays compliant with HMRC rules.
With TT Accountancy Services handling your payroll, you can focus on growing your business while we manage the complex details of PAYE.
📞 Get in touch with us today to streamline your payroll and stay compliant.
