How To Pay Employers’ PAYE

How To Pay Employers’ PAYE

Each month, you need to pay HM Revenue and Customs (HMRC) the tax and National Insurance you owe as reported on your Full Payment Submission (FPS) in the previous tax month, minus the reductions on any Employer Payment Summary (EPS) you sent before the 19th in the current tax month. To see the various different ways of paying your tax, please click here:

You must pay what you owe by the 22nd of the month (or 19th if by post), and you may have to pay a penalty if you do not. 

As an employer operating PAYE as part of your payroll, you need to complete certain tasks during each tax month. Tax months run from the 6th of one month to the 5th of the next. You must also tell HMRC if you have not paid any employees in a tax month. 

There are some areas of consideration to remember when paying your employees:

  • On or before your employees’ payday
    • Record their pay 
    • Calculate deductions
    • Calculate the employers’ National Insurance contribution 
    • Produce payslips
    • Report their pay and deductions to HMRC in a FPS
  • In the next tax month (starting on the 6th) 
    • Claim any reduction on what you’ll owe HMRC
    • View the balance of what you owe in your HMRC online account within 2 days
    • Pay HMRC by the 22nd (or 19th if by post)
  • Late reporting
    HMRC will send you a late filing notice if you’ve paid any employees and do not send an FPS or send one late. You can also be charged a penalty unless you have a valid reason for reporting late.

If you require any assistance or have questions regarding paying your self assessment tax bill in accordance with the Government information listed above, please contact our friendly team of experts today by clicking here.