Payroll Process

Overview 📘

All UK employers must report staff pay and deductions to HMRC in real time through the RTI (Real Time Information) system. This ensures that payroll data is always up to date and that both employees and HMRC have accurate information on income tax, National Insurance Contributions (NICs), and other deductions.

Process Map

✅ How the RTI System Works

Each time employees are paid, a report is sent electronically to HMRC through RTI. This submission confirms:

• How much has been paid to each employee.
• The amount of income tax and NICs due.
• Any other statutory payments, such as student loans or maternity pay.

Our payroll team handles these submissions on your behalf each month on the pay date.

💡 It’s important that HMRC payments are made promptly. Late payments can lead to automatic penalties and interest charges.

💡 If You Expect Payment Difficulties

If you think you might have trouble meeting payment deadlines, please contact us as soon as possible - ideally before the due date. Early notice allows us to approach HMRC to arrange a payment plan or Time to Pay agreement on your behalf, which can help avoid fines.

🔗 HMRC: PAYE late payment penalties

📊 Deadlines and Penalties

• RTI submissions must be sent on or before the pay date each month.
• PAYE and NICs payments are due by the 22nd of the following month (19th if paying by post).
• Repeated late submissions or payments may lead to escalating penalties.

Keeping accurate and timely payroll records helps ensure full compliance and prevents unnecessary costs.

📩 Contact the Payroll Team

For all payroll-related matters, please email our team directly at payroll@barnesandscott.com

We handle all routine payroll processing, RTI submissions, and correspondence with HMRC.