After your company incorporation is completed and you begin trading you may need to employ staff within your company or if not you may simply need to pay yourself a wage as a director.  In these circumstances, registering for Pay As You Earn (PAYE) may be required.  As an employer you are legally required to withhold the correct amount of tax and National Insurance from salary payments to employees, which you then must pay to HM Revenue and Customs.

Registration for PAYE is necessary when an employee is earning more than £95 a week or £412 a month. However it is possible to register as soon as you know the number of staff that you will be employing and when the first payroll date is.  For many new companies it is beneficial to register soon after incorporation as it is usually necessary to make wage payments fairly soon after the company has begun trading.  There may also be tax planning reasons why directors may wish to pay themselves a salary through the payroll under PAYE.

After registering for PAYE there are a wide range of other issues you may need to consider.  There are employer’s year end returns to deal with as well as P11D’s and a number of other requirements that may apply. If you are unsure about payroll matters it may be beneficial to speak to a Chartered Accountant or Tax Adviser as they can provide help and advice.

For more information about PAYE Registration and payroll visit the Wisteria Chartered Accountants website here: http://www.wisteria.co.uk or call 0208 952 0150.

Wisteria Formations offer PAYE Registration during the online company registration process.  To complete your company formation with Wisteria Formations begin here: http://www.wisteriaformations.co.uk