Statutory Registrations

When a business first employs staff HM Revenues & Customs should be notified and the business will be registered as an employer for PAYE purposes. An information pack will be provided by HM Revenue & Customs explaining how to create a payroll and operate tax and NIC. A New Employers helpline is available on 0845 607 0143.

A “small employer” procedure is available which can assist with cash flow and minimize administrative costs.

Familiarization with the Working Families Tax Credit and Disabled Persons Tax Credit schemes is also required.

A requirement exists for employees to be provided with an itemized pay statement detailing PAYE and NIC deductions and tax credit payments. Registration for vat is compulsory if business turnover is more than the current level of £64,000.00 (as at April 2007).

Penalties for failing to register are severe and can include a requirement to pay all vat which should have been charged even though not collected from the customers of the business.

Advice from an appropriate tax adviser is important not only to ensure compliance with statutory registrations but also in order to take advantages of available tax allowances, exemptions, reliefs and breaks.

Please contact us for further information.