Running a payroll for a very small company

[velosam]

My friend is going from self employed to a limited company and has asked for advice.  I understand the company bit, but not the payroll. In my old dates it was a pain with NI tables etc. Has it got easier and what exactly does he need to do to run his own payroll?

His salary will be around £6k from which I can work out he basically gets his state benefits but limits the amount of NI he pays.  I can read their is new software and stuff, but I can't really advise him anymore as I just don't know about it.

thanks

[HeltorChasca]

Quickbooks Online? You get a 'deal' for the first year. I'm self employed but I'm a one man band so I don't use the payroll bit. It's rubbish on iPhones and iPads. Which is why I got it in the first place so I can invoice remotely ☹️A bit of sales banter won me over. I'm bitching with them for a discount at he moment.

Alright from a pc though.

[velosam]

Thanks. I have made him a spreadsheet for doing accounts and invoicing but have not done payroll for years

[zendog]

I'd give the IR a ring and ask what they recommend.

They can be amazingly helpful when you are not on the wrong end of an investigation.

[DaveReading]

HMRC provide a free Windows application called PAYE Tools, worth a look at.

[L CC]

I did payroll a few jobs ago for a small firm (<25 staff). We used Quickbooks on the accountants recommendation.

[marcusjb]

Also look at Xero, maybe slightly easier to get into than Quickbooks if you do not come from an accountancy background. Handles payroll, Mrs. JB uses it for hers.

If you/your friend have an accountant, ask them how much they charge for it. I have mine done by my accountant (though I am also a Xero user, but the cost is the same, and I would rather have a professional doing it than the complete idiot that runs my company).

[velosam]

Cheers all. I am the accountant helping him I just have not done payroll for years, hence the question l.

Lol

[Pickled Onion]

With that level of pay, it might be easiest to just run a single payslip per year, just before year-end. Fill in the HMRC forms just once—job done, and he can pay the money out of the Ltd Co when it's available. Just make sure the right boxes are ticked so they know it's an annual payment and don't send demands for PAYE assuming it's monthly.

[velosam]

That does sound easier than messing every month.