I’m considering employing staff in the UK; how do I go about this?
The company must first be registered with HMRC as an employer; thereafter, it must make minimum quarterly declarations of the income tax and national insurance deducted from staff remuneration, and pay these over within two weeks of the quarter-end.
What is the procedure for paying over taxes I’ve collected as an employer from my staff?
The annual tax quarters run as follows:
- April 6th – July 5th
- July 6th – October 5th
- October 6th – January 5th
- January 6th – April 5th
Alternatively, the company can opt to make monthly declarations and payments, this frequency becoming compulsory if the amount of income tax and national insurance paid over per month exceeds 1,500.00 GBP.
At the tax year-end date of 5th April, all employee remuneration and taxation must be accounted and signed for by a director on a form P35, and returned to HMRC by 19th May. Any under-deductions and/or payments in the tax year must be made good by 19th April.
What are my obligations as an employer regarding the provision of registered addresses, trading addresses etc?
The company must provide a separate trading address from its registered address only if it cannot be demonstrably shown that trading activity takes place at the registered address.
Core ‘UK Tax FAQs’ text completed 2007