Employment tax, what is it?
If you employ people, those individuals will incur PAYE income tax (Pay As You Earn) on their earnings and employees NIC (National Insurance Contributions) and some pension deductions as well.
And the employer is responsible for making sure that when they pay the individuals these correct deductions are made and paid to HMRC and the pension provider.
They don’t pay employees the gross pay, they pay them net pay after the PAYE, employee NIC and pension contributions and they have to pay the money and report the money to the HMRC and pension provider.
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The employer also has to report any other benefits that the employees receives such bonuses, cars, petrol, phone call expenses etc
The employer has to pay Employer NIC but there are some reliefs from this extra tax.
Typically, Wagners will help clients run their own payroll, because it’s more efficient for them to do it, or if required do the payroll for them.
And we can also make sure that the individuals are not assessed to tax on the wrong things.
So it is critically important you get it right.
For all tax issues get in touch Wagner Associates.