Pay as You Earn
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One of the major advantages of being self-employed is that it not only enables you to pay your tax annually and partially in arrears but it also allows many expenses as deductions when calculating the income on which your tax bill will be based.
In contrast, the Pay as You Earn (PAYE) system, used for taxing employees, is a great advantage to any government. After all it enables the collection of income tax throughout the year rather than waiting until its end. There are also far more limiting rules as to what is an allowable deduction for an employee. It is not surprising therefore that so many resources are put into policing the PAYE system. This is why the payroll bureau has become an essential resource for every business.
PAYE audits are routinely undertaken on businesses. It is not a question of whether a business will be investigated but when. A payroll bureau can deal with this quickly and efficiently as they will have already carried out the type of checks which the Revenue use.
If a business is found to have made mistakes, they will of course be given a bill for any unpaid tax but they will also be charged interest on any tax deemed to have been paid late and charged penalties of up to 100 per cent of the tax that would have been lost had the mistake not been discovered. Businesses do not want to risk getting it wrong and use an expert payroll bureau such as us at Dataplan. |
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Author Resource:-
The Article is written by dataplanpayroll.co.uk providing Payroll Services and Payroll Company Services. Visit http://www.dataplanpayroll.co.uk for more information on dataplanpayroll.co.uk Products & Services___________________________
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This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included. Visit dataplanpayroll.co.uk for more services!
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By :
Brigette Federico
Submitted
2009-11-19 10:31:27 |
Article From Article Mayhem
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