Employment Taxes
Every UK employer is legally responsible for calculating, deducting, reporting, and paying various employment taxes to HMRC. These taxes apply to wages, salaries, bonuses, benefits-in-kind, and other employee-related payments. Mistakes or delays can result in serious penalties and reputational damage for your business.
At My Tax Consultants, we provide detailed assistance with all aspects of employment tax compliance, covering PAYE, NICs, P11D reporting, and CIS obligations. Our services are tailored to help employers avoid HMRC issues while maintaining accurate records and payroll systems.
What Falls Under Employment Taxes?
Employment taxes refer to a broad set of tax liabilities an employer must deal with on behalf of their workforce. These include:
1. PAYE (Pay As You Earn)
This is the system by which income tax is deducted directly from employees’ wages. Employers are responsible for operating PAYE, applying the correct tax codes, calculating tax due, and submitting Real Time Information (RTI) returns to HMRC.
2. NICs (National Insurance Contributions)
Both employees and employers must contribute to National Insurance. Employee contributions are deducted from wages, while employers pay a separate rate on top. Getting these calculations right is key to proper employment tax compliance.
3. P11D Reporting for Benefits-in-Kind
Employers must report any taxable perks given to staff, such as company cars, health insurance, or low-interest loans. These are submitted through P11D and P11D(b) forms. Incorrect or late reporting can result in penalties and backdated charges.
4. Construction Industry Scheme (CIS)
Employers and contractors in construction must comply with CIS rules when paying subcontractors. This includes deducting tax at source, filing monthly CIS returns, and verifying subcontractor status with HMRC.
Our Comprehensive Employment Tax Services
At My Tax Consultants, we go beyond basic payroll setup to offer structured support across every component of employment taxes. Here’s how we help:
Accurate PAYE Setup and Filing
We manage PAYE registration, apply correct tax codes, and ensure your payroll software complies with RTI requirements. All employee tax deductions are calculated and filed on time to meet HMRC standards.
NICs Calculation and Classification
We assess each employee’s status and make sure the correct NIC category is used. This includes managing statutory payments (such as sick pay or maternity pay) and employer contribution rates, avoiding common mistakes that trigger audits.
P11D Support and Advice
Our team calculates, prepares, and files P11D forms for benefits-in-kind. We help you correctly value benefits, complete submissions by the July 6 deadline, and minimise exposure to tax liabilities related to perks or expense reimbursements.
CIS Compliance Management
For construction clients, we handle monthly CIS filings, contractor registration, subcontractor verification, and deduction statements. We help reduce risk during HMRC inspections or reviews of your CIS processes.
Common Risks in Employment Tax Compliance
Even small errors in employment taxes can lead to significant problems. We often support clients with:
- Late or missed PAYE and NICs payments
- Use of outdated or incorrect employee tax codes
- Misclassification of contractors vs. employees
- Overlooking P11D obligations for company-provided benefits
- Penalties from missing deadlines or incorrect submissions
- Incorrect treatment of director salaries and dividends
- RTI return failures due to software or human error
We carry out reviews of your current systems, suggest improvements, and offer ongoing support to prevent recurrence of such issues.
Employment Taxes and Audit Preparation
If HMRC opens an inquiry into your employment taxes, the burden of proof lies with you. We help businesses prepare for such events by ensuring that payroll records, benefit logs, and RTI filings are complete and up to date. In case of an active investigation, we assist in representing your interests and responding to HMRC queries.
Benefits of Choosing My Tax Consultants
- Full-service employment tax compliance from payroll to P11Ds
- Regular updates to comply with HMRC rule changes
- Fixed, affordable pricing and clear deliverables
- Experience with a wide range of industries and business sizes
- Specialist support for startups, SMEs, and CIS-registered contractors
Our team stays informed about HMRC’s changing expectations and common audit triggers. This allows us to provide accurate, proactive guidance year-round.
Speak to My Tax Consultants Today
If you employ staff, you are responsible for managing employment taxes correctly. Let My Tax Consultants support your payroll and reporting processes so you can focus on running your business. From PAYE and NICs to P11D reporting and CIS compliance, we’re here to help you meet your legal obligations while avoiding costly mistakes.
Contact My Tax Consultants today to get expert help with your employment tax compliance needs.
