LJS Accounting Services

Our Guide to HMRC Payroll Software

Our Guide to HMRC Payroll Software

Having efficient business payroll software can help companies report to HMRC. Staying HMRC compliant is key in the world of business, one bad move and you could face an open dispute or penalties through investigation.

Using reliable software can help record employee details, figure out income, and deductions and work out how much you need to pay to HMRC to name a few.

HMRC payroll software comes with an array of basic features, but they come with many benefits. It can be hard dealing with software by yourself, especially if you’re a small business owner who’s taking on these tasks for the first time.

At LJS Accounting Services, we help businesses up and down the country stay on track with their payments to HMRC, as well as being legal aid providers and offering expert advice.

Having an accountant work alongside your business comes with an array of advantages. To find out more about HMRC payroll software, continue reading.


What is PAYE?

Pay As You Earn, known as PAYE, is a type of software that can be used through HMRC, widely used by many businesses.

PAYE helps the government know that your employees are paying the accurate amount of taxes – this is something that’s crucial to check. Both income tax and national insurance must be paid by employees at all businesses, regardless of what sector it’s in (construction, hospitality or events to name a few).

Tax and national insurance are typically deducted from the payslip – each employee receives a net amount and isn’t required to pay any additional money to HMRC.

PAYE should legally be used by businesses that have employees, with an array of basic PAYE tools available.

There are certain criteria your employee has to meet when it comes to being able to operate basic PAYE, and although there’s an extensive list, here are some of the main requirements:

  • Earn £116 or over per week
  • Claims expenses
  • Receives employee benefits
  • Has another job
  • Receives pension contributions from you


Once you recognise that you’ve employed someone who meets one or more of the above list, you should register your business as an employer through the HMRC website.

Payroll records should always be kept by employers, whether they use the benefits of PAYE or not – if this is something you need help with, the team at LJS Accounting Services can help.


PAYE: How to Get Started

It’s crucial for you or your accountant to ensure that both your employees and HMRC are paid the right amount of money.

It can be difficult to keep on top of financial matters, especially when you’re dealing with other important aspects of your business – this is why we’re here to provide our services.

At LJS Accounting Services, we use expert software to keep an overview of our client’s financial records and keep everything on the right track.

Advanced software can help to work out each employee’s gross pay that they owe, as well as income tax – this is something that can’t always be worked out manually with such accuracy.

As an employer, it’s essential that you give HMRC the right information. Providing the wrong information could land you and your business in trouble, with the chance of being given a fine or a dispute opened between yourselves and HMRC.


Paying HMRC

It’s important that you know your employee’s tax code – this way, you’ll be able to accurately deduct the right amount of income tax.

The process of finding out how much to deduct from each individual employee can be challenging, but if you have a P45 issued by their previous employer, it’ll be much simpler to work out.

Appropriate deductions can be made by using payroll software when each of your employee’s previous tax and national insurance details are entered – this makes the whole process of paying HMRC a lot easier.

Those who have previously made student loans will need to make their employees aware – this is because loan repayments could affect tax contributions.


How LJS Accounting Services Can Help

Our team of professional accountants is able to assist with an array of financial matters regarding your business. It’s hard to keep track of everything as an employer, which is why we’re here to help those in need of our services.

If you’re struggling to figure out what you need to pay to HMRC, one of our advisors will be able to act as an aid.

Some of our services include Personal Tax, Expert Start-Up Advice and CIS Tax Disputes to name a few. For any additional information about the services that we provide, feel free to contact a member of our team today by calling 0151 601 0000.

Have You Got Any Questions?

Need to talk to someone? Get in touch with one of our consultants today and we will be happy to help.
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