PAYE

PAYE (Pay As You Earn) is the system that HM Revenue & Customs uses to collect Income Tax and National Insurance contributions (NICs) from employees' pay as they earn it. As an employer, you have a legal obligation to deduct tax and NICs from your employees' pay each pay period and pay Employer's Class 1 NICs if they earn above a certain threshold.

We use the employee's tax code and National Insurance category letter to work out how much Income Tax and NICs to deduct from their pay and how much Employer's Class 1 NICs you owe on their earnings. You pay these amounts to HMRC monthly or quarterly. You may be able to send the amounts due every quarter if your average monthly payments are likely to be less than £1,500. HMRC must have received the amounts owed by the 19th of each month - or by the 22nd if you make electronic payments-. You may have to pay interest if you don't send the correct amount, or if you send it in late.

Aspen Accountancy will advise you when and how much income tax and national insurance to pay to HMRC and keep an eye on any submission deadlines for you.