The start of a new year is always a demanding time for payroll, human resources and accounts departments. And in the UK, January means tax codes, tax bills and tax returns.
With all self-assessment tax returns due at the end of January, your payroll department is likely to be inundated.
From requests for payslips, details of National Insurance contributions, copies of P60s and P11Bs to every payroll question your employees can think of — is your payroll team ready for the January rush?
If only you could outsource payroll to an experienced payroll company with a centrally managed system that always gives you access to the most up-to-date and correct information…
Preparing for self-assessment
Self-assessment in the UK has a set deadline every year and is due on 31 January 2022.
It’s commonly assumed that self-assessment tax returns only apply to sole traders (i.e., self-employed people). However, staff will also need to do a self-assessment return in the UK if:
- They’re a director of a limited company or a partner in a partnership
- They earned more than £100,000 as an employee (or a pensioner)
- Their investments or savings income generated more than £10,000
- They earned £2,500 or more from untaxed income (e.g., tips or commission)
- They’re an expat living abroad but still receive income from the UK
Directors also have to file company tax returns and a personal (self-assessment) return that details their salary and dividends received through the business. While this non-exhaustive list doesn’t apply directly to businesses, chances are you’ll have employees that fall under these criteria.
For example, employees working for your company might need to do self-assessment tax returns if they’ve done any freelance work or run a small business on the side.
Anyone filing a late self-assessment will face a penalty of £100 if their tax return is up to three months overdue, with even more to pay if it’s paid any later.
Staying on top of it all
Self-assessment returns require a staggering amount of payroll information to ensure the figures are calculated correctly.
If you’ve got dozens of people requesting specific payroll details at the same time, it’s going to be a nightmare to manage — particularly during January when your payroll department is already running at full speed.
You’ll need to have this data on-hand to provide to your employees whenever they need it, too. So, it’s essential to keep the data organised, up to date and easily accessible for your employees and any accountants working with your business.
With so much to stay on top of, it’s no wonder that many companies look at UK payroll outsourcing…
A fully managed payroll service
As a UK payroll provider, TopSource Worldwide offers a centrally managed payroll solution: an online payroll software that consolidates all your business’ payroll data in a straightforward interface. We also have years of experience in working with accounting firms to take on the delivery of their entire client payroll operation.
We can work with you to give your employees round-the-clock access to all the documentation they need, saving time and giving you peace of mind.
No more scrambling to gather information or putting added pressure on your payroll department to source the correct documents. Our online payroll software does all the hard work and calculations for you. So, the most up-to-date and accurate information will always be available for whoever needs it — meaning your employees can access whatever payroll information they need at any time.
And don’t forget — if you’re operating across several countries worldwide, you’ll be faced with different tax deadlines across each jurisdiction. Why not save yourself the headache and outsource your tax obligations to a global payroll provider like TopSource Worldwide?
Our UK payroll software solution ensures your employees have everything they need to submit all the right tax returns in January 2022 — without bogging down your payroll or accounts departments. Get in touch today via email@example.com or call +44 (0)203 691 5284 to learn more about our fully managed payroll service.