Running your own payroll

[wurzel]

Sorry, I know that this has been done before and the general consensus is to get an accountant to do it but I'm now on my 3rd accountant and he's completely useless. I pay £140 per month and am less than impressed with the service. Generally, I have fairly short term IR35 caught contracts & like to chuck as much money as possible at my company pension, i.e. be as tax efficient as possible. My main problem is that I never know how much money I can invest in my pension, how much to set aside for NI & tax etc. I know there are various software packages out there for running a payroll but what's the best resource for learning how to do the various calculations etc? This year, I paid it all in one go in April & it was a very nasty surprise when I got the bill. Would much rather do this monthly and know exactly where I stand.

[worzelGummidge]

Go with SJD Accountancy and use their spreadsheet.
You will be paying less money have an OK accountant. have an easier life and know how much you have left to pay into your pension.

[xoggoth]

HMRC have some detailed guidance booklets on how to calculate PAYE although the thing on their CD should do for a single person.

[FarmerPalmer]

HMRC provide you with a software package on CD, and that is all you need for a small business. It handles multiples companies, and multiple employees of companies. You put in how much you are paying the employee in question and it tells you how much tax, employees NI and employers NI to pay, and also can be used to provide the employers annual PAYE return.

[ladymuck]

I do my own, it's really quite simple. I use Sage Instant Payroll because it imports direct into Sage Instant Accounts, saving me the hassle of typing a three line journal once a month, oh and it uploads your P35 and stuff like that. Haven't used the HMRC tool but I should image it functions perfectly well.

I was recommended http://www.markjheyburn.co.uk by someone at the PCG and their quote halved what SJD were charging me.

[OrangeHopper]

I agree with Xog and Falmer in that the HMRC CD etc is the primary source of information.

I run two spreadsheets, one to work out how much of any IR35 caught income must be paid via PAYE, the second to work out the income tax and NI to be paid on that income. I always check that the latter PAYE spreadsheet produces the same numbers as those produced by the HMRC calculators.