• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Taxlab

Taxlab

Accountants and advisers - Bathgate & Aberdeen

  • About us
    • Careers
    • Book an appointment
    • Client Login
    • Insurance
  • Services
    • Open a Bank Account
    • Year End Accounts
    • Xero
    • Bookkeeping
    • VAT
    • Payroll
    • Auto Enrolment
    • Self Assessment
      • A Guide to Self-Assessment
      • Self-Assessment Tax Return 2021-2022
    • Contractor Services
    • Forecasting and Budgeting
  • Added value solutions
  • Brexit
  • Giving
  • Get funding
  • Blog
  • Contact Us
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

How to set up a PAYE Scheme for your company

You are here: Home / Payroll / How to set up a PAYE Scheme for your company

October 15, 2020 By intyahmed

You must register as an employer with the HM Revenue & Customs (HMRC) if you are running a company or a business that employs staff to carry out work on your behalf for exchange of salary or benefits.

‘Pay As You Earn’, or PAYE, is the system by which HMRC collects income tax and National Insurance from employees. Employers must act as collectors of tax for HMRC and if they fail to operate PAYE correctly they will be liable for penalties.

How to Set up PAYE

The information needed when registering is:

  1. Company name
  2. Company unique taxpayer reference (corporation tax) (UTR)
  3. Nature of the business
  4. Business address
  5. Company registration number (CRN)
  6. First payday
  7. Number of employees you employ
  8. Full name and national insurance number of company director

What is PAYE income and employment

PAYE employment income consists of:

  • any taxable earnings from employment in the year, and
  • any taxable specific income from employment in the year

This definition, therefore, covers most cash payments made by employers to employees including salaries, bonuses and termination payments.

There are some cash payments made by an employer to an employee that will not be subject to PAYE. The main example is the payment of excluded business expenses. These are expenses which would not give rise to a taxable benefit which HMRC has authorised the employer to ignore.

Real Time Information (RTI)

Since April 2013, most employers have been required to use HMRC’s new system for reporting PAYE: Real Time Information (RTI). Under RTI, information must be submitted to HMRC throughout the year, rather than simply at the year-end.

Filed Under: PAYE, Payroll

taxlab accountants - footer background

Let’s work together

Get in touch with us and send some basic info about your business and we'll explain how we can add value.

Talk to us

Footer

Contact

Taxlab
93A South Bridge Street
Bathgate
West Lothian
EH48 1TJ
Get directions
0845 8626009
Contact
Mo,Tu,We,Th,Fr,Sa 9:00 am – 5:30 pm

Map

Quick Links

  • FAQs
  • Aberdeen Office
  • Bathgate Office
  • Legal Information & Terms

© 2022 Taxlab