Stage 6 -Why you need a Payroll
If you are going to be paying yourself and other employees from your Limited Company, you will need to register with HMRC as an employer to report the tax and national insurance that you deduct from the payroll. This is easy to do and can be done on the HMRC website in a few minutes.
A few weeks after registering you will receive your PAYE and Accounts Office Reference, once you have these you are ready to start to submit your payroll details to HMRC on a regular basis. You will need to provide payslips to employees detailing their pay and any deductions that you make from their gross pay.
If you employ a member of staff, you will be required to fulfil your obligations under auto enrolment. This means that you will be obliged to set up and make contributions into a pension for the people that you employ. This will be managed through the payroll and there are reporting requirements to meet to the pensions regulator.
The payroll needs to be reported to HMRC in a timely manner to avoid late filing penalties and you will need to make sure that you pay at least the national minimum wages for your staff, unless they are a company director.