Your obligation to run a PAYE scheme is governed by how much your employees are paid. As of January 2016 the following criteria all have to be met to make you exempt from running a PAYE scheme:
- Your employees must be paid less than £112.00 per (or below the Lower Earnings Limit)
- They must not get expenses or benefits
- They must not have another job
- They must not be in receipt of a pension.
If you fall within this criteria, you are still obliged to keep payroll records, and these must show:
- what you pay your employees and the deductions you make
- reports and payments you make to HM Revenue and Customs (HMRC)
- employee leave and sickness absences
- tax code notices
- taxable expenses or benefits
- Payroll Giving Scheme documents, including the agency contract and employee authorisation forms
You are required to keep accurate records that may be inspected by HMRC, and retain them for 3 years.
If you are uncertain about how to run a payroll and keep records, PayrollAbility can assist by running your payroll and providing you with reports and payslips for your staff. This does not involve submitting RTI to HMRC, and will keep you compliant as your business grows and a full payroll service is required. Speak to us today on 01384 92 90 20 about how we can help you.
