Bookkeeping and VAT
Every owner managed business has the same objective; to increase performance whilst decreasing costs, both ongoing processes that can be seriously accelerated using cutting edge technology.
At Watson Buckle we offer cost-effective finance systems and cloud applications with market leading suppliers. Our cost-effective finance system combines market-leading accounting technology and cloud applications with expert advisory services to drive continuous improvement.
You can access our full cloud solution which includes outsourced bookkeeping and VAT.
Company secretarial
To give your business the benefits of limited liability protection, you can opt for one of two structures – limited company or limited liability partnership (LLP).
These structures offer the benefit that the owners’ personal finances are separate from those of the business, so that directors and shareholders are not personally responsible for business debts, except in exceptional circumstances.
They also involve filing, accounting and reporting to Companies House deadlines so it is essential that your records are accurate, complete and submitted on time.
Payroll
If you are an employer, you’ll know that payroll can be a problem. Not only must you calculate the correct tax and national insurance contributions from pay, but you may need to deal with other deductions – like maternity and sick pay, student loans repayments and pensions – and taxable benefits like company cars.
A mistake could prove costly and there are also tight timetables for returning statutory submissions and penalties for getting it wrong. More importantly, errors can lead to unhappy employees.
Whether you are a sole trader with one or two employees, or a large company with many staff, we can provide fast, cost-effective payroll management, using our computerised system leaves you free to concentrate on running your business.
We’ll process your payroll and respond promptly to enquiries, either by phone or online, and keep you compliant with any changes to payroll regulations.
Not sure about your payroll duties as an employer? Your questions answered
Running payroll is one of the most important responsibilities you have as an employer.
With legislative rules changing regularly and strict HMRC deadlines, it’s no surprise you have questions.
We regularly advise employers on their payroll duties and concerns. Below, we answer some of the most common questions we are asked.
As an employer, you must calculate and deduct PAYE tax and National Insurance, submit Real Time Information (FPS and EPS) to HMRC each pay period and operate workplace pensions where applicable.
You are also required to keep detailed payroll records including pay details, deductions, NI numbers, tax codes, hours worked, holidays and sickness.
These records must be kept for at least three years from the end of the relevant tax year.
Employer contributions mainly include Employer’s National Insurance and pension contributions.
These rates and thresholds can change regularly, so using compliant payroll software is crucial to calculating these accurately.
The current SSP rate is £118.75 per week and is payable for up to 28 weeks if the eligible criteria are met.
SSP is subject to tax and National Insurance and it must be three full days of sickness in a row to qualify.
From April 2026, SSP will become a day-one right and the Lower Earnings Limit (LEL) will be abolished so that more workers can qualify for sick pay.
The current minimum wage rates from 1 April 2025 are:
- Age 21 and over (National Living Wage): £12.21 per hour
- Age 18-20: £10.00 per hour
- Age 16-17: £7.55 per hour
- Apprentice rate: £7.55 per hour
From 1 April 2026, the rates will be:
- Age 21 and over (National Living Wage): £12.71 per hour
- Age 18-20: £10.85 per hour
- Under 18: £8.00 per hour
- Apprentice rate: £8.00 per hour
Employers must stay up to date with the current rates to ensure compliance.
Sometimes mistakes can happen with your payroll. If you have paid an employee incorrectly, you must always notify them of the error in writing.
If you have overpaid an employee, you must come to an agreement on how the overpayment will be recovered. Repayments can be made through deductions or a repayment plan, but they must be reasonable and clearly documented to avoid disputes.
If you have underpaid an employee, you must immediately calculate the shortfall and pay the difference. You will then need to submit a corrected Full Payment Submission (FPS) to HMRC and mark the adjustment as ‘Code H – Correction to earlier submission’ in the late reporting reason field.
Employees can opt in or opt out of an auto enrolment scheme, subject to specific criteria. Employers cannot influence employee decisions. If an employee opts out, this must be done within 30 days of the deduction in order to receive a refund.
All employees must be opted back into the scheme every three years.
Yes. Even if you outsource payroll services, the legal responsibility remains with the employer.
You must ensure the information provided is accurate and that submissions are made on time.
When starting up a new business you must register as an employer with HMRC, obtain a PAYE reference, choose a payroll software or provider and collect employee details.
Employers have a responsibility to understand their RTI reporting and pension duties to avoid any problems later.
These issues are often due to confusion about tax or National Insurance. You should walk them through their pay slip and calculations and confirm that the deductions are correct.
If you have found that an error exists, you must correct it promptly through your payroll provider.
Employers should always use the latest tax code notification from HMRC.
When hiring new employees, they must complete a starter checklist form, which should be passed to the payroll department and include the days/hours and rates of the agreed contract.
Whether you offer gym membership or health insurance, all benefits that employees receive on top of their salary will need to be submitted in a P11D form.
You must report all Benefits in Kind (BiK) on P11D forms by 6 July for the previous tax year. HMRC will calculate the Class 1A NIC contributions owed and this must be submitted by the 19 July (by cheque) or 22 July (electronically).
HMRC are changing the way that tax is collected on benefits from 6 April 2027 with the mandatory roll out of ‘payrolling benefits’. Employers must sign up before the start of the tax year and identify the areas of reporting required. Full details of any benefits must be provided to the payroll department in order to process these in real time.
How Watson Buckle can help
Payroll doesn’t have to be complicated. With the right systems and professional support in place, you can stay compliant and focus on running your business.
If you need help with any aspect of payroll, contact our team today.
