Running a business:
PAYE
PAYE stands for "Pay as You Earn". It is a system for collecting income tax and National Insurance Contributions (NIC) from employees and directors as it is earned. In effect, the employer acts as a tax collector for HM Revenue & Customs (HMRC).
If your business is an employer (and your company will be an employer even if you are its only employee) then you need to maintain a payroll system and operate PAYE. Firstly you need to register with HMRC, who will provide you with an employer reference number which you need to use on official forms and correspondence.
There are many forms that need to be filled in, and deadlines that need to be met, when you operate a PAYE system.
Your payroll system can be manual or computerised, or you may find it more efficient to let someone else run your payroll system for you, and we would be happy to assist you with this. Even if you run your own payroll, you may want to obtain additional help from your accountant at certain times, for example assistance in preparing the year end forms.
 |  | Related literature: |
- The National Minimum Wage
- Employing your spouse
- My worker tells me he's self employed. What obligations do I have?
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Where next?
Within Running a business ...- Accounting systems
- Financial information
- Your business premises
- Remuneration
- Business risks
- VAT
- Business taxes
General ...
