If you are an employer, whether you have had your business a while or are just taking on your first employee, HMRC can provide a range of expert advice on several topics that affect employers. To take advantage of this service, call the Employers telephone helpline.
HMRC Employers Helpline
Why Might I Need to Call the Employers Helpline?
You might need to call the employers helpline for any one of a thousand reasons – if you employ people, you will almost certainly need to call at some point. You could be calling for more information, to resolve a problem, or to notify the Government about something – the list goes on. Your reasons to call may include:
An employee is taking maternity leave and you want to make sure your company policy is up-to-date on maternity law
You are not sure how to submit your report in the PAYE scheme
You think one of your employees needs to be set up for student loan repayments
You need to set up payroll records for next year
You need information on payment deadlines and amounts
You want to register as an employer
HMRC Employers Telephone Numbers
0843 658 0509
Emergency Calls Line
0843 658 0509
0843 658 0509
Employers HelplineOpening Hours
Employers Helpline Call Centre
Monday to Saturday 9am to 5.30pm, Sunday 11am to 5pm
Employers Helpline Head Office Address
Department for Work and Pensions
PO Box 50101
Important Information About Tax Returns
What can the Employers Helpline advise on?
The PAYE scheme.
PAYE is a scheme that was introduced to allow HMRC to collect Income Tax and National Insurance contributions from employees. Employers must deduct tax and National Insurance contributions each period. The payroll software you use should be able to do this. You must submit a Full Payment Submission online before or on each payday to tell HMRC about payments made to each employee and confirm the tax. If you don’t, you could face a penalty.
When an employee takes time off to have a baby, they are eligible for either Statutory Maternity Leave or Maternity Pay. Maternity Leave is up to 52 weeks and your employee should get up to 90% of their earnings for 39 weeks.
Student loan repayments.
As an employer, you are responsible for checking if a new employee needs to make Student Loan repayments. You are also responsible for deducting the repayments and passing the repayment to HMRC. You should record these repayments on payroll records and employee pay slips.
Filling in your employer annual return.
By the 19th of May 2014, you should have sent your final employer annual return and converted to using PAYE instead.
Setting up payroll records for the next tax year.
At the beginning of each tax year, your payroll system, whether it be an in-house system or outsourced to an accountant, should set up new payroll records for the next taxable year.
Registering as an employer
As soon as you first employ someone, you will need to register as an employer. You need to do so in advance of the first payday.
Payments and deadlines.
HMRC can provide advice on the deadlines for using PAYE as well as information on late payment interest and penalties that are charged by HMRC for paying late and how you can avoid them.
Payroll is an essential part of running your business. You can choose to outsource it to an accountant or use payroll software. There are a number of HMRC approved payroll software providers. It is important that the provider you choose can handle all the types of payments and deductions that you may need to make.
Employers must have employer’s liability insurance by law if someone works for you and you meet the following criteria:
You deduct National Insurance and Income Tax from the money that you pay them.
You pay the employee per hour, per week or per day.
You supply the majority of the equipment and materials.
You are exempt from requiring employers insurance if:
You are a limited company where only one person is employed and they own more than 50% of the share capital.
A company which isn’t limited and only has one employee who is the principal of the business.
A company which isn’t limited, with more than one employee but the employees are close family members.
You are a partnership, where the directors are equal partners in the business and don’t employ others.
Liability insurance will cover you for claims which relate to injury or illness to staff as a result of their work. For instance, if an employee was injured by a piece of machinery which was owned by your business and it was your fault that they have been injured, your liability insurance will cover the cost of any compensation and legal costs. Typically, liability insurance will cover you up to £10 million.
You can be fined up to £2,500 for every day that you do not have employers liability insurance. You must add part-time workers and temporary staff to any policies that you have.
Just like employers have health and safety duties, so do employees. It’s essential that the employer and the employee work together to ensure the workplace is safe. Responsibilities of employees include:
Take reasonable care of their own health and safety as well as the health and safety of others.
Co-operate with the employer on matters of health and safety.
Don’t misuse any equipment which is provided for health and safety purposes.
Follow the employer’s health and safety instructions and attend any training.
Report any hazards or defects which are observed in the workplace.
The responsibilities also apply for schools and colleges, where the student would act as the employee.
Popular questions about Employers
Where do employers get P45 from?
You can produce P45s using payroll software, including the HMRC basic PAYE tools. Alternatively, if your payroll software is unable to produce the forms, you can order them from HMRC- you can’t print blank ones to fill in.
Are employers required to pay holiday pay?
You are not entitled to statutory holiday pay if you are self-employed or in the Armed Forces/Police/Civil Protection services, though you should be given contractual holiday. Statutory holiday entitlement depends on how many days you work a week- for example, if you work 2 days a week, you’re entitled to 11.2 days holiday, but if you work 5 or more days a week, you’ll get 28 days.
Are employers required to pay for training?
Yes, if you are required to take training outside of your normal working hours, you should be paid for it. This is also the case for new employees.
Are employers required to pay for jury duty?
An employer isn’t required to pay you whilst you are on jury duty, but you can claim for a loss of earnings from the court. Your employer must give you time off for jury duty, but can ask for it to be delayed if they feel that if may affect the business.
Are employer gifts taxable?
As an employer providing gifts to employees, you have tax and National Insurance obligations. The rules vary depending on what you give- call the employers helpline to find out more.