Payroll and PAYE

Hiring a nanny makes a household a PAYE employer. This guide covers the £96 a week registration trigger, why a nanny cannot simply be treated as self-employed, what comes out of the nanny's pay, employer National Insurance at 15% above £5,000, pension auto-enrolment, the gross-versus-net wage trap, and the fact most nanny payroll marketing gets wrong: the Employment Allowance is an excluded liability for a household employer, so the family pays employer NIC in full.

Security work runs three tax positions side by side: guards on payroll, self-employed operatives invoicing for shifts, and firms subcontracting to each other. Each one has a different answer on the Security Industry Authority (SIA) licence fee, on travel, on VAT at £90,000 and on what a guard costs to employ. This page sets out the decision points, with 2026/27 figures.

Professional footballers pay income tax at 45% on everything above £125,140, collected through PAYE by the club like any other employee, plus employee National Insurance at 2% on the same earnings. Endorsements, signing-on fees, agents' fees and image rights each have their own treatment. This page answers the money question first, then walks the mechanics.

Employer-paid membership of a commercial gym is a taxable benefit in kind reported on a P11D, with employer Class 1A National Insurance at 15% since 6 April 2025. Running it through salary sacrifice does not reduce the charge, because the optional remuneration arrangements rules tax the higher of the salary given up and the benefit value. A sole trader's own gym spend is generally not allowable, and a limited company paying a director's membership creates the same benefit. This page gives all four rulings with a recomputable 2026/27 example.

The salary you agree with a new employee is not what they cost you. In 2026/27 you add employer National Insurance at 15% on everything above £5,000, a minimum 3% pension contribution on qualifying earnings, and, for larger payrolls, the 0.5% apprenticeship levy. This guide works through the full true cost at £30,000, £45,000 and £70,000 salaries, explains the £10,500 Employment Allowance, and shows the marginal cost of every pay rise you award.

Tax deducted at source (TDS) means income tax is taken from certain payments before you receive them. This guide covers how TDS applies to interest, dividends, payroll, rental income, and gift aid, plus when you can reclaim overpaid tax.

A clear breakdown of the UK taxation bands for 2026/27, covering income tax, National Insurance, dividend tax, and corporation tax. Includes practical examples for limited company directors, sole traders, and contractors.

Working as a construction subcontractor means dealing with the Construction Industry Scheme (CIS), VAT, and often IR35. A specialist accountant who knows the sector inside out can save you thousands and keep you compliant. Here is what you need to know.

A clear look at whether you need an accountant for payroll, what they actually do, and when doing it yourself stops making sense. Includes real cost comparisons and common pitfalls.

A practical guide to managing accounts and payroll for your UK business. Covers payroll setup, PAYE, year-end reporting, and how to keep bookkeeping on track. Written for limited company directors, sole traders, and small business owners.

A specialist CIS accountant UK helps construction contractors, subcontractors, and sole traders navigate the Construction Industry Scheme. We explain what CIS is, who it applies to, the common mistakes, and how an accountant saves you time and money.

A clear, practical guide for UK employers on correcting PAYE overpayments from previous tax years. Covers the EPS correction process, RTI reporting rules, and when to claim a direct repayment from HMRC.

The tax-free mileage rate that was 45p per mile for years rose to 55p per mile from 6 April 2026 (tax year 2026/27) for the first 10,000 business miles an employee drives in their own car. Above 10,000 miles, the rate stays at 25p per mile. This article explains how to pay it through payroll, what counts as a business journey, and what happens if you pay more or less than the approved amount.

Processing a final salary payment for a leaving director is different from a standard employee termination. You need to handle the director's loan account, accrued holiday pay, and final payroll submission correctly to avoid HMRC penalties. This guide covers the full process for UK limited companies.

You must register with HMRC as an employer before your first payday, whether you are a limited company director paying yourself a salary, a sole trader taking on staff, or a partnership with employees. This guide covers who needs to register, what triggers the obligation, the step-by-step online process, what references HMRC issues and when, ongoing RTI obligations, and the cost of getting it wrong.

Step-by-step guide to registering as an employer, choosing payroll software, and running your first payroll. Covers directors, sole traders with staff, and common pitfalls like the Employment Allowance and RTI deadlines.

IR35 rules apply differently to umbrella company contractors than to limited company contractors. This guide explains how HMRC assesses your employment status, what deductions you should expect on your payslip, and whether IR35 actually affects your take-home pay when you work through an umbrella.

Directors' National Insurance is worked out on an annual earnings basis, not the weekly or monthly basis used for ordinary employees. There are two ways to run it through payroll, the annual (cumulative) method and the alternative (pro-rata) method, and they collect the same total by different routes. We explain both methods with worked 2026/27 numbers, the employer NI position (15% above £5,000), the Employment Allowance trap for sole directors, and how salary and dividends fit together.

A practical 2025/26 guide to P11D benefits in kind for UK employers and directors. Covers what counts as a taxable benefit, exempt benefits, how to calculate company cars, fuel, loans and private medical insurance, Class 1A NIC at 15%, payrolling options, filing deadlines and penalties. Written for directors, business owners and payroll managers.

A director paying for their own fuel in a company car does not remove the requirement to report the car benefit on a P11D. However, it does remove the fuel benefit charge. This article explains the distinction, the making-good deadline, the P11D and P11D(b) process, and what changes when payrolling company cars becomes mandatory in April 2027.

Routing employee bonuses through a separate limited company to avoid employer National Insurance is a known HMRC avoidance scheme. The disguised remuneration legislation catches it, and the penalties can exceed the NI saved. Here is why it does not work and what to do instead.

If you employ someone who is also a director of another company, their PAYE code and National Insurance can get complicated. This guide covers tax code splits, NI deductions, and the correct HMRC forms for dual-employee directors.

If you are a director of a limited company with no staff beyond yourself, you still need to run payroll. This guide covers the RTI process, salary planning, software options, and the key deadlines for director-only payroll in 2025/26.

Running payroll for a small UK business involves more than just paying staff. This guide covers what you must report to HMRC, the real cost of getting it wrong, and when outsourcing payroll services makes financial sense.

A director who takes only dividends and no salary is still an employee for payroll purposes. You must submit an RTI return showing zero pay. This guide explains exactly when and how to file, the penalties for missing it, and how it interacts with director's NI and benefits.

If you run a limited company, paying yourself through payroll is not optional if you take a salary. A director payroll service handles the RTI submissions, payslips, P60s and PAYE calculations for you. Here is exactly what that service covers, what it costs, and whether you need one.

HR accountants handle the overlap between human resources and finance. They manage payroll, employment taxes, benefits, and compliance with HMRC rules. This article explains what an HR accountant does and when your business needs one.

Accountancy payroll covers the full cycle of paying employees correctly: from RTI submissions and PAYE deductions to pension auto-enrolment and year-end reporting. This post explains what payroll in accounting involves, when you need a payroll accountant, and how to avoid the common penalties.