From 6th April 2015, a new NI band called the Upper Secondary Threshold (UST) has been created to facilitate the abolition of employer National Insurance contributions for employees under the age of 21. The Upper Secondary Threshold is £815 per week. Earnings above this threshold will remain subject to secondary Class 1 National Insurance Contributions. […] Read more »
No more P35 Questions
HMRC has said that from 6th March 2015, the end of tax year P35 checklist will no longer be required. Employers will still however be required to report the Final Submission for the Year indicator with either their RTI Full Payment Submission (FPS) or EPS. The end of year checklist consists of seven declaration questions […] Read more »
Shared Parental Leave
On 1st December 2014, new regulations giving Shared Parental Leave and Pay came into force in Great Britain. This applies to eligible couples whose baby is due to be born or the child is placed with the adopting couple on or after 5th April 2015. This will replace Additional Statutory Paternity Pay and leave. If […] Read more »
HMRC error affects 5 Million UK taxpayers
The Daily Telegraph has reported that HMRC have made miscalculations in millions of taxpayers’ pay and tax calculations for the 2013-14 tax year. We have already been contacted by many of our clients whose employees have received form P800 which they believe to be incorrect as the forms show they have earned more than they […] Read more »
New National Minimum Wage Rates
From 1st October 2014 the National Minimum Wage rates are increasing. Please ensure you review and amend the rates for your employees from this date. The hourly rate for employees under 18 years of age increases from £3.72 to £3.79 per hour The hourly rate for employees between 18 to 20 years of age increases […] Read more »
Holiday Entitlement
With summer fast approaching, your staff will be booking their summer holidays and wanting to receive their holiday pay, so here are the basic facts for statutory holiday entitlement. * Workers have the right to get paid leave; accrue holiday entitlement during sick, maternity or paternity leave; choose to take holiday at the same time […] Read more »
£2000 Employment Allowance
So you may have seen the advert on the telly, or you may have had a lovely letter from 10 Downing Street saying the government’s new employment allowance will cut up to £2000 from your employer National Insurance bill. Around 1.25 million business employing someone will benefit from this new allowance and a third of […] Read more »
Tax Year End Procedure 2013-14
Now that you are reporting PAYE information to HMRC in real time, there is no longer a need for a P35 or P14s anymore. Instead, the usual questions and declaration that were part of the P35, will now be part of your final Full Payment Submission (FPS) or Employer Payment Summary (EPS) if applicable. For […] Read more »
Christmas Benefits
With the festive period upon us, some employers may want to provide their employees with a gift or bonus, but how will this affect your payroll? CHRISTMAS BONUSES All cash bonuses paid at Christmas count as earnings and must go through payroll in the normal way. Non-cash vouchers, and benefits with a money’s worth are […] Read more »
Don’t pay HMRC too early!
Since Real Time Information (RTI) started, some employers have been experiencing difficulties in reconciling the difference between the tax they think is due, and the tax HMRC think is due according to the RTI submissions. As I mentioned in my last blog, it is vital for employers to use their correct PAYE Accounts reference for […] Read more »
RTI: The importance of reporting Hours Worked
From October 2013, the new Universal Credits system will start to be introduced around the UK. This new benefits system will replace income support, housing benefit, job seekers allowance and employment and support allowance. Then, from April 2014, workers who are currently claiming tax credits will claim universal credits instead. It is therefore crucial that […] Read more »
Paying HMRC correctly
Since April 2013 and the introduction of RTI (Real Time Information), HMRC know exactly what each employer owes them every month and are quick to chase for late payments or apparent underpayments. We have seen many cases recently of our clients being sent demands for underpayments when in fact they have paid the correct amounts, […] Read more »
Payroll Giving
Payroll Giving was launched back in 1987 but only 6% of UK employers currently offer the scheme to their employees, so there is still massive scope to give charities access to huge income they are missing out on. Many employees would like to donate to charity this way but more businesses need to offer payroll […] Read more »
RTI Is Coming… Are You Ready For It?
The move to reporting PAYE information online to HMRC in REAL TIME is mandatory. Most employers will have to move to operating RTI (Real Time Information) from April 2013. In October 2012, HMRC will write to all employers telling them what they need to do to get ready for RTI, and in February 2013 they […] Read more »
10 Great Reason For Outsourcing Your Payroll
COST Big businesses can afford to maintain big payroll departments. For small businesses however, an in-house payroll service is a money burner. If you calculate the hours your employees spend on payroll-related activities, plus payroll software costs, training costs, printers, printing and distributing payslips, creating tax documents etc, you could be surprised by the result […] Read more »