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🏛️ PAYE & Employer Tax

PAYE & Employer Tax UK —
Full Compliance, Zero Penalties

Complete PAYE and employer tax compliance — payroll processing, employer NIC, Employment Allowance, P11D benefits, payrolling of benefits, PAYE settlement agreements and HMRC employer compliance review support. ACCA qualified. Fixed fee.

✓ PAYE & RTI✓ Employer NIC✓ Employment Allowance✓ P11D✓ PSA
🏛️ RTI submitted on or before pay date
💰 Employment Allowance — up to £5,000/yr
📋 P11D benefits filed by 6 July
🔄 Class 1A NIC due 19/22 July
⚡ HMRC payroll agent — all correspondence handled
What It Covers

PAYE & Employer Tax — More Than Just Running Payroll

PAYE compliance goes far beyond processing payroll. Employer NIC planning, Employment Allowance claims, P11D reporting, payrolling of benefits, PAYE Settlement Agreements for non-cash benefits and HMRC employer compliance reviews are all aspects of employer tax that create both obligations and opportunities.

Employment Allowance allows eligible employers to reduce their employer Class 1 NIC bill by up to £5,000 per tax year. Most UK employers qualify — single-director companies without other employees are excluded, as are employers whose NIC liability exceeded £100,000 in the previous year. We claim Employment Allowance automatically for every eligible client, saving thousands annually.

P11D reporting — required for all taxable benefits provided to employees or directors: company cars, private medical insurance, beneficial loans, accommodation and more — must be filed with HMRC by 6 July. Class 1A NIC (13.8%) on the benefits value is due by 19/22 July. We prepare P11D returns for all clients with taxable benefits as a standard annual service.

From April 2026, payrolling of benefits becomes mandatory for most employers — adding taxable benefit values to payroll monthly rather than reporting annually via P11D. We are proactively preparing all clients for this change and can implement payrolling of benefits now for those who want to make the transition early.

✅ What’s Included

  • Payroll processing & RTI filing
  • Employer NIC calculation
  • Employment Allowance claim
  • Starters & leavers processing
  • Tax code change management
  • P11D preparation (all benefits)
  • Company car BiK calculation
  • Class 1A NIC calculation
  • P11D(b) filing by 6 July
  • Payrolling of benefits setup
  • PAYE Settlement Agreement (PSA)
  • Employer compliance review support
How It Works

Our Process — Step by Step

1
Monthly payroll & RTI
Every pay run: gross pay, PAYE, NIC, pension deductions calculated — RTI FPS filed on or before pay date. Employer PAYE liability confirmed each month.
2
Annual P11D preparation
We collect all benefit details — company car CO2, PMI premiums, loan balances, accommodation — and prepare P11D forms for every employee with taxable benefits.
3
P11D(b) & Class 1A NIC
Filed with HMRC by 6 July. Class 1A NIC at 13.8% on total benefits value calculated and payment schedule provided for 19/22 July deadline.
4
Employer compliance support
If HMRC opens an employer compliance review, we attend, manage the information flow and negotiate settlements reflecting the correct legal position.
£5,000
Employment Allowance — annual employer NIC reduction for eligible businesses
6 July
P11D filing deadline — penalties apply from day one if missed
13.8%
Class 1A NIC rate on taxable benefits — paid by employer only
“Britvex claimed Employment Allowance we’d never heard of and saved us £5,000 in NIC in the first year. They also restructured our benefits to save a further £3,200 in Class 1A.”
⭐⭐⭐⭐⭐ — MD, Professional Services Firm, Birmingham
Who It’s For

Which Businesses Need This Service?

👥

All UK Employers with Staff

Every employer must operate PAYE, claim Employment Allowance where eligible and report taxable benefits. We handle complete employer tax compliance for businesses of all sizes.

🚗

Businesses with Company Car Fleets

Company car BiK is one of the most complex and high-value P11D items. We calculate every car’s BiK precisely — CO2 rate, list price, fuel benefit — and advise on the tax efficiency of EV versus petrol fleets.

💼

Director-Only Companies

Single-director companies need payroll even for a small salary — RTI registration, FPS filing and annual P60. Employment Allowance doesn’t apply but other employer obligations do.

🏗️

Construction Businesses with Mixed Workforce

Businesses with employees and CIS subcontractors need both PAYE and CIS compliance managed together — ensuring correct worker classification and correct treatment of each.

Common Mistakes

4 Costly Mistakes — And How Britvex Prevents Them

❌ Not claiming Employment Allowance

Many businesses don’t claim Employment Allowance — or forget to claim it each year. For a business spending £25,000/year on employer NIC, this is a direct £5,000 saving. We claim it automatically for every eligible client.

❌ Missing P11D benefits

The most common P11D error is omission — failing to report a benefit because it wasn’t identified as taxable. Private use of a company van, beneficial loans above £10,000, relocation above £8,000 and non-trivial gifts are frequently missed. HMRC’s BiK taskforce regularly identifies underreporting.

❌ Not preparing for mandatory payrolling of benefits

From April 2026, payrolling of most benefits becomes mandatory. Businesses that haven’t transitioned will face an enforced change during the busiest tax period. We advise on early transition for clients who want to prepare.

❌ Incorrect employment status classification

Misclassifying workers as self-employed when HMRC deems them employed is one of the highest-risk payroll errors — HMRC has recovered billions in unpaid PAYE and NIC from businesses that incorrectly treated workers as contractors. We review employment status for all workers.

Frequently Asked Questions

PAYE & Employer Tax — Common Questions

When does a UK employer need to register for PAYE?

You must register for PAYE before your first payday if you pay any employee more than the lower earnings limit (£123/week in 2024/25), provide taxable expenses or benefits, or employ anyone with another job or pension. We register you for PAYE as part of our onboarding and ensure all setup is correct from day one.

What is Employment Allowance and who qualifies?

Employment Allowance allows eligible UK employers to reduce employer Class 1 NIC by up to £5,000 per tax year. Most employers qualify — exclusions include single-director companies without other employees and employers whose NIC liability exceeded £100,000 in the previous year. We check eligibility and claim automatically.

What benefits need to be reported on a P11D?

Taxable benefits requiring P11D reporting include: company cars and fuel, private medical insurance, beneficial loans above £10,000, accommodation, non-trivial gifts, personal expenses paid by the company and private use of company assets. Trivial benefits (£50 or less, not cash or performance reward) are exempt. Annual staff functions up to £150/head are also exempt.

What is a PAYE Settlement Agreement?

A PSA allows employers to make one annual payment to HMRC to cover the tax and NIC on minor, irregular or impracticable-to-apportion benefits and expenses. Common PSA items include staff entertaining, non-business travel and minor incentive awards. PSAs simplify year-end and avoid the need to report each item on individual P11Ds. We negotiate and manage PSAs for clients with relevant benefit spend.

What happens during an HMRC employer compliance review?

HMRC employer compliance reviews examine your PAYE, NIC, expenses and benefits treatment — typically covering the previous 4 years. Scope can be wide. We attend all reviews, manage the information provided to HMRC and negotiate settlements that reflect the true legal position. Settlements typically cover all employees under a comprehensive agreement.

Transparent Pricing

Fixed Fees — No Surprises

All fees fixed and agreed upfront. Book a free consultation for your exact quote.

Included
With Payroll — Full PAYE management included in all Britvex payroll packages.
£149
P11D Service — All benefits reported, Class 1A NIC calculated, filed by 6 July.
£499
Compliance Review Support — Employer visit preparation and representation.

All include: ACCA qualified · HMRC agent · client portal · 2-hour response guarantee.

Related Services

Complete Your Tax Package

💼
Payroll Processing
Full managed payroll — RTI, payslips, BACS file, PAYE management. Learn more →
📋
P60 & P11D
Annual P60s and P11D benefits reporting — every employee, every year. Learn more →
🎁
Employee Benefits
Benefits structuring — salary sacrifice, EVs, trivial benefits. Learn more →
Tax Services Specialists

PAYE & Employer Tax — Completely Managed

Book a free consultation. We’ll take over your PAYE compliance — Employment Allowance claimed, P11D filed, Class 1A NIC calculated. Fixed fee, zero penalties.