Payroll & Pensions

PAYE (Pay As You Earn) is the system used by employers across the UK to collect Income Tax and National Insurance directly from the employee’s wages before they are paid. It is a legal requirement for employers in the UK to set up a PAYE operating system and make the required deductions from wages before payment. Here at HVA we operate a fully complaint PAYE payroll system, ensuring that all tax and National Insurance deductions are calculated accurately and submitted to HMRC on time. This provides our employers with peace of mind that their payroll is managed correctly and in accordance with UK legislation.

An employee works under a contract of employment and is entitled to statutory employment rights such as paid holiday, sick pay, pension contributions, and protection under employment law. Employees work under the direction and control of their employer, who is responsible for deducting Tax and National Insurance through PAYE.

A self-employed contractor on the other hand, operates as an independent business and provides services under a contract for services. Unlike employees, contractors are responsible for managing their own taxes, National Insurance, and business expenses. They generally do not have employment rights and are not protected under employment law.

Yes, volunteers can be reimbursed for reasonable, out-of-pocket expenses incurred while carrying out their voluntary role. Common examples include travel costs, parking fees, meals purchased while volunteering, or the cost of materials required for the role.

Here at HVA we recognise that volunteering should not leave individuals out of pocket. We therefore reimburse reasonable, pre-approved expenses incurred in the course of volunteering, subject to our expenses policy and supporting documentation where required.

Yes, employees can choose to opt out of a workplace pension scheme after they have been automatically enrolled. Under UK law, eligible employees must be automatically enrolled into a qualifying workplace pension by their employer, but they have the right to opt out if they do not wish to participate.

Employees who opt out within the statutory opt out period will normally receive a refund of any contributions already deducted. Employers must never pressure employees to opt out and must provide them with information about the pension scheme and the opt out process.

As an employer, you are required to maintain accurate payroll and pension records to comply with the UK legislation. Records must be stored securely, accessed only by authorised personnel in accordance with GDPR.

Payroll and pension records must include:

• Employee starter form
• Payroll summaries and payroll reports
• Payslips
• Timesheets
• Pension scheme enrolment records
• Opt-in and opt-out notices
• Pension summaries and pension reports
• Employee communications relating to workplace pensions