I’m sure most small businesses go through this when they start taking on employees……I need to pay them…..should I do it myself?…..or should I outsource?
With less than 40 days until 6th April and the dawn of PAYE Real Time Information (or RTI for short)… there is a lot of scare mongering that running a payroll has become more complicated….it will take you longer….therefore you need a payroll professional…..to this I say poppycock!
The fundamentals of running a payroll are the same!
Yes for most businesses in the UK you will need to start making RTI returns from April 2013 but if you take a step back, all RTI is really about is sending information to HMRC more regularly (i.e. every time you make a payment to an employee).
Under RTI you will still continue to deduct tax and national insurance as you do today. You will also continue to make the payment of any outstanding PAYE & NIC liability to HMRC by the 19th of the next calendar month (22nd if you pay electronically).
So what should I choose for my business?
For me it’s quite simple…..you either tell the payroll software what you want to pay your employees, or do you tell your accountant……both will automate your payroll calculations and submissions for you……just make sure you choose what is right for your business.
- Do it yourself with Specialist Software…? if you want to save time, ensure compliance and keep control over how you pay your employees, there are some great pieces of specialist Payroll software available on the market to automate your payroll, some free and some chargeable.
I would strongly recommend that you check that the software has been recognised by HMRC, you can do this here, but would suggest you talk to your accountant to recommend a solution for you.
- Outsource..? If we want to concentrate on running your day to day business tasks, simply choose to outsource your payroll needs and delegate this to a Payroll Service Provider or Accountant, just make sure you choose one that still gives you an element of control over what you want and need.
Whatever you choose for your business, ensure you get the guarantee of on-going legislative compliance and support you need. To find out more about RTI legislation download our free guide.
Neilson Watts, Sage One Team