Set up a basic record-keeping system
If you employ staff, you will need to keep a record of how much you pay each of them and the deductions made from their wages.
For each employee you must keep a record of:
- their gross pay (the mains things that count are wages, salary, overtime payments, statutory payments)
- any tax deducted or refunded
- any National Insurance contributions (NICs) deducted or refunded
- any Student Loan deductions
Why do I need to keep wages records?
- You will have a single, detailed record of one of the most significant costs for most small businesses.
- You will be able to easily answer any staff questions you may receive when they come to do their own Self Assessment income tax returns.
- You will be able to prove that you pay the national minimum wage and equal pay for work of equal value should you need to.