inniAccounts automatically deducts PAYE payments when you create payslips – this includes income tax and national insurance payments. Every quarter your company must make the appropriate payment to HMRC for the PAYE.
For quarterly PAYE payments, the period ends are the 5th July, 5th Oct, 5th Jan and 5th Apr. When the period ends we’ll let you know and you’ll see a reminder on your homepage to process the PAYE and make the payment before the deadline which is the 19th of the same month.
Making a PAYE payment
When we let you know it is time to make a PAYE payment, you can view the details of your payment by clicking Taxes then PAYE / NIC payments. By then selecting the PAYE period from the list you’ll find the details to make your payment.
You need to make the payment to HMRC from your company bank account before the deadline of the 19th of the PAYE period end. Please ensure you use the exact details shown in inniAccounts before making the payment as late or incorrect payments may result in a penalty from HMRC.
Once you have made the payment and it appears on your bank statement, you can mark the payment as paid in your bookkeeping.
What if I have nothing to pay?
If no payment is due to HMRC for a PAYE period, you don’t need to take any action.
The amount of tax and National Insurance due will depend on a number of factors including what salary is paid to directors and employees of your company and where we are in the tax year.
If salary is paid to a director, the National Insurance is calculated differently to employees. For directors the calculations use annual thresholds instead of on a monthly basis for employees. As a result no National Insurance will become due until the salaried earnings of a director for the tax year exceed the annual earnings threshold. This means that a company may not be due to pay any PAYE tax or National Insurance until the latter months of the tax year.