Any small business that has employees will need to run a payroll. There are strict rules around who is classified as being an employee, so be sure that all positions filled have been assessed.
Payroll is the term used to describe records and calculations for the pay and deductions of employees under the PAYE (Pay As You Earn) system. Under PAYE, Real Time Information (RTI) Returns are to be submitted to the HMRC on each pay day.
Unfortunately, the HMRC issues penalties starting at £100 per missed RTI return are payable to HMRC and any underpaid tax and NI due will also accrue interest.
This makes it essential you have a good provider in place to avoid costly penalties and to ensure a smooth process when paying your employees.