PAYE as an employer

[Springchickenonion]

Hi all.
I wandered if someone could please explain how paying PAYE to HMRC works as a LTD company

I have an accountant as I'm rubbish with this sort of thing. But I'm struggling to understand how this works out

So every month when I add up all e players paye and Ni including mine it comes to roughly just over £1k a week.

But the amount my accountant says I need to pay HMRC is always significantly higher!

They have calculated that month 11 should be £8474.04

But I'm not sure how or why? I obviously will ask her after the weekend. But wandered if someone knows how or why before I make a fool of myself please.

Week 48 was higher £1051.99
Week 47 £1041.33
Week 46 £1031.38
Week 45 £ 1101.91

Total = £4226.59

So how is it £8474.04?

An I missing something? Do HMRC add something else on?

If someone understands these things I would really appreciate the advice!!

Thank you

PAYE payment to HMRC will normally include employees PAYE, Employee NI, Employer NI and student loan. How are are you getting the info to add up?

Is this because we pay Employer’s Class 1 National Insurance Contributions? So literally double the amount?

@daisym00n thank you. I just added up all the payments from our staff payslips. So I added up all the NI and all the PAYE tax. The accountant tells me at the end of the month how much to pay. And this latest one just seems so high! And I can't understand why?

None of our staff have student loans. So I'm assuming employer NI is basically matched to the employees contribution?

Employers NI rate is higher than Employees NI at 13.8% and the threshold of when you start to pay it is lower - after £175 of the weekly pay. The employers NI probably doesn’t show on the payslip. There is an NI calculator here https://www.gov.uk/guidance/work-out-an-employees-national-insurance-contributions

Thank you @daisym00n I litererally found that page after my rant.

Geez... so high! Starting to question if we can keep going at this rate! We pay over minimum wage but I can see why so many employers can't pay that!

Really appreciate your help.

Thank you!

No problem. Yes, staffing on costs can be a bit of a killer. I'm assuming that your accountant runs the payroll and just sends you amounts and payslips? I’d ask them to send you a gross to net report as well which will set out all the details of what the payment to HMRC will cover.

That's correct. I will ask her for that going forward. Gave me a slight panic when I saw the amounts! We are in hospitality too. Literally feel like we are being screwed over all the time. Especially when it comes to VAT. Can hardly claim anything back as its all fresh produce!