PAYE from £1 a month
Pay-As-You-Earn (PAYE) is a method of paying Income tax and National Insurance contributions to the government. Every employee in the UK has to pay tax out of their wages. The amount of PAYE paid to the government out of a person’s wages will depend on how much they earn. Sounds simple right? You tax is paid to the government when you receive your payslip each month.
If you’re a sole trader you don’t need to worry about PAYE, all your tax is sorted out in your tax return at the end of the tax year.
However, for Limited Companies it can be a bit more complex. If you own your own Limited Company, YOU are an employee of that Limited Company which means YOU, (the Director) will need to pay PAYE from your wages. If you have other employees, PAYE will also need to be paid from their wages.
If you’re new to PAYE or need advice, give us a call and we can advise you on the best payroll system to use and set you up with HMRC.