Why payroll compliance matters from Day One
Employing staff brings immediate obligations: you must deduct employee Income Tax and National Insurance (NI), pay employer NI, report monthly via RTI (Real Time Information) and pay HMRC by the 22nd of each month.
Failing to comply can result in penalties, interest, and unexpected HMRC scrutiny.
Common mistakes small employers make
-
Running payroll manually without software — errors in NI or tax rates, missed deductions.
-
Missing RTI deadlines due to ad-hoc record-keeping or poor bookkeeping discipline.
-
Poor tracking of employer NI payments or miscalculating holiday pay, benefits, or bonuses.
How proper bookkeeping and payroll software keeps you compliant
Using an integrated bookkeeping and payroll solution ensures:
-
Employee deductions and employer contributions are calculated correctly every pay run
-
RTI submissions are made automatically on or before pay day
-
Employer NI and PAYE payments are scheduled and flagged for month-end payment
This removes manual error risk, saves time, and keeps you fully aligned with HMRC requirements.
The advantage of being payroll-ready with clean records
For business owners, this means:
-
Avoiding surprise penalties or back-dated NI liabilities
-
Clear audit trail and record book in case of HMRC review
-
Better cash-flow planning, as payroll costs are visible and forecastable
We offer bookkeeping packages from £129 per month with two months free on annual subscriptions, including bank reconciliation, VAT, PAYE and monthly reports for complete financial clarity. Need help? Email support@bookkeepingpackages.co.uk or visit our site at www.bookkeepingpackages.co.uk.
No comments: