Frequently asked payroll questions.

20% for verified subcontractors, 30% for unverified, 0% for those with gross payment status. We verify every subcontractor with HMRC before their first payment.

Monthly, by the 19th. Late filing triggers a £100 penalty after one day, with further penalties at 2, 6 and 12 months. We file on time as standard.

Not for the same work, but a business can run a PAYE scheme for direct employees and a CIS scheme for subcontractors in parallel. We set this up routinely.

If you receive payments from a contractor under CIS, you need to register with HMRC as a subcontractor. If you also engage your own subcontractors, you need a contractor CIS scheme as well. The two registrations are separate.

If you are a limited company subcontractor, your CIS deductions are offset against your PAYE liabilities. Any surplus can be refunded at year-end. We reconcile this position monthly so it does not pile up.

As soon as you pay an employee at or above the National Insurance Lower Earnings Limit, provide benefits in kind, or take on staff who have another job. In practice, before the first payday.

Real Time Information: the HMRC system for reporting payroll on or before each payday. Two main returns: the Full Payment Submission (FPS) for actual pay, and the Employer Payment Summary (EPS) for nil periods, recovery claims and adjustments.

31 May, for the tax year ending 5 April. We issue P60s through the employee portal as standard.

The form used to report taxable benefits in kind (company cars, private medical, etc.) to HMRC. Due 6 July following the tax year end. Only needed if you provide reportable benefits.

Send it to us. We deal with HMRC correspondence on your behalf as part of the service. Coding notices, RTI generic notification service (GNS) messages, compliance check letters, all handled.

Following the Harpur Trust case and subsequent legislation, holiday pay for irregular-hours and part-year workers is calculated as 12.07% of hours worked, accrued each pay period. We apply the correct rate based on contract type and pay frequency.

Your company is small if it meets two of: turnover £10.2m or less, balance sheet £5.1m or less, 50 employees or fewer. If you are small, the contractor's PSC makes the IR35 determination, not you. If you are above the threshold, you carry the determination.

Status Determination Statement: the written conclusion of an IR35 assessment, with the reasoning. Required for every engagement where the end client carries the determination.

One that runs straightforward PAYE on the assignment rate, deducts the standard employment costs (employer NI, holiday pay, pension), discloses its margin transparently, and does not offer take-home figures higher than equivalent PAYE.

Yes. HMRC's standing position is that any umbrella offering meaningfully higher take-home than a standard PAYE calculation is doing something HMRC will eventually come after, often retrospectively. The risk usually lands on the contractor.

We process the payroll cycle for umbrella and PSC arrangements: the calculations, PAYE deductions, holiday pay accrual and RTI filing. The umbrella or the end client then takes care of paying the contractor based on the figures we have prepared.

Yes. All UK employers with at least one eligible jobholder must operate a qualifying pension scheme and auto-enrol them, with re-enrolment every three years.

NEST, The People's Pension, Smart Pension, Aviva, and most major providers. We help choose the right one during onboarding if you are not on one yet.

8% of qualifying earnings total: 3% employer, 5% employee (which includes basic-rate tax relief). The split can be increased on the employer side, never reduced below the minimum.

Every three years, employers must reassess workers who previously opted out and re-enrol those still eligible. We track the dates and run the cycle for you.

Whichever suits you best. Our team is trained across QuickBooks Payroll, Xero Payroll, BrightPay, Sage Payroll, MoneySoft, and other major platforms.

The first full cycle is under our control inside 30 days, whether you are setting up fresh or switching providers.

Yes. Migration is part of onboarding when you are moving from another provider, with no double-running and no missed cycles.

We take over the scheme cleanly between two pay periods. Tax codes carry over, payslips continue without a gap, and the only change your employees notice is the contact details on the portal. We handle the HMRC agent authorisation and the data migration.

They will see updated portal contact details and (if you choose) a short note from you explaining the change. Payslip layout, tax codes and pay schedule continue as normal.

They carry over as part of the migration. We reconcile the YTD position with your current provider's records so the year-end figures match the running totals.

A clean export of the payroll records is ideal, but we have onboarded clients from providers who refused a cooperative handover. We can reconstruct YTD from RTI history and bank records if needed.

Transparent fixed monthly fee, based on the number of payslips processed, the cycle frequency and any add-ons. You see the price before you commit, and the price holds while the scope holds.

Yes. No card, no commitment, no pressure. The free call gives you a clear sense of whether we are the right fit before any quote is issued.

Standard service is rolling monthly. We do not lock you into multi-year commitments.

Standard HMRC correspondence (RTI confirmations, coding notices, routine queries) is included. Major enquiries or compliance checks may attract additional fees, agreed in writing before the work begins.

Yes. Lexarox Payroll is HMRC-AML supervised and an authorised HMRC agent.

We process the payroll, file with HMRC, issue the payslips and CIS statements, and let the client know the tax liability, the due date and the method of payment. The client usually takes care of paying the employees and settling the HMRC liability. The calculations and the filings sit with us; the payment side sits with the client.

No, and we do not need to be. Lexarox Payroll provides payroll services, not legal advice. For legal work, our sister firm Lexarox Legal handles pre-court legal consultancy.

Hackney, East London. MS.128, 203-213 Mare Street, E8 3JS.

Phone: 0208 533 1358. WhatsApp / mobile: 07472 356 282. Email: office@lexaroxpayroll.co.uk.