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Bob L

Manual Payroll

The HMRC website now has the tables for manual calculations for tax and National Insurance, so if you wish to check your payslip you can do so using pen and paper.  There are table and calculator methods, and there will usually be very small differences between the two, but both are accepted by HMRC.

AE Timebomb

We attended an auto-enrolment seminar last week with presentations from financial advisors and pension companies.  There could be trouble approaching, as the number of companies expecting to have auto-enrolment pension provision seems to outstrip the current capacity of the pension industry to provide it.  There was also a statistic presented that 30% of companies that were due to start in April and May failed to do so.

Your company should start to prepare at least 6 – 12 months prior to the staging date.  Look on ‘The Pensions Regulator’ website, and have your PAYE number to hand, and you will find that first piece of information.  Be warned – An existing pension scheme may well not meet the requirements of auto enrolment, and there is no obligation for a current provider to assist you.

As a payroll bureau we can help.  There are lots of steps to set up the pension, and an on going burden, but equally an opportunity to add to your companies employee benefit package and hopefully improve staff retention.  If a contractual pension scheme does not suit, then an auto-enrolment payroll assessment scheme is the answer.

We can help process the assessment, provide data for you and provide data for the pension company.  We hope we can be part of the solution and make life a little less complicated, while still allowing your company to comply with the most recent set of legislation.  Contact us if you need further information

PAYE Penalty Charges

HMRC has announce changes to penalties for late filing of PAYE information that will effect both 2013 and 2014 tax years.  Companies not filing their returns could face fixed penalties.

The good news is that these steps are to avoid confusion with the new ‘in-year’ penalty system to be introduced in October 2014.  The moral of this story is to not make late submissions!

The penalties were always planned and it is all part of the PAYE real time information system.  We make the submissions on our clients behalf using their PAYE and tax office reference numbers.

There is further information available on the HMRC website

 

P46 forms – RIP

The P46 forms were used when an employee arrived without a P45, this was amended to a ‘shorter’ P46 and now is no longer used at all.  It is not possible to submit a P46 to HMRC and all they need is the starter declaration information that we have included on the ‘New Starter Forms‘.  It is also possible to use an HMRC new starter declaration but the information is the same and our form keeps everything we need in one place.

The new starter form includes basic information, such as National Insurance Number, but it is the answers to the questions that have the influence on the tax code an employee will start with.  Please try and answer A, B or C as a ‘not known’ results in a 0T wk1/mth1 tax code and the employee may have an initially higher amount of tax deducted than necessary.  The following are the bands given depending on the answers (valid 2.6.14) –

A – 1000L cumulative
B – 1000L wk1/mth1
C – BR cumulative

Auto-Enrolment Newsletter – Update

Workplace pension law has changed. Every employer in the UK will eventually be required to help their workers to save for their retirement. Employers will need to automatically enrol certain workers into a pension scheme and contribute towards it.

In very simplistic terms all of your existing employees and any new employees will be required to be a member of a compliant pension scheme, with the employer making a minimum contribution. There are exceptions based upon age and how much your employee is paid. An employee can opt-out from the pension scheme. Please be aware however that this is a very simplistic view of Auto-Enrolment and in practice it is far more complex.


When will this affect me? – Staging Dates

The Pensions Regulator has assigned all organisations a staging date for when they need to start Auto-Enrolment. The staging date is dependent on what the size of your organisation was in April 2012. To establish the staging date for your organisation please visit (you will require your PAYE reference number from the front page of your reports)

http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

Once you know your organisation’s staging date it is then time to start preparing for Auto-Enrolment

 

How should I prepare for Auto-Enrolment?

The process of Auto-Enrolment is complex and as such there is a great deal of information available via The Pensions Regulator website (http://www.thepensionsregulator.gov.uk). If you already have a pension provider consider discussing Auto-Enrolment with them.

 

Can I get help?

We are working alongside a firm of independent financial advisers, NLP Financial Management who will ensure that you meet your Auto Enrolment obligations whilst removing the complexities involved. NLPFM can assist with all aspects of the process including explaining your obligation and the financial impact it will have on your business, sourcing and setting up the pension scheme and providing you with the necessary communication that you will need to issue to your employees. By working alongside Payroll Options, NLPFM will ensure that the process is as simple and easy for you as possible. In recognition of NLPFM’s range of services and client care, they have recently been named the Citywire ‘New Model Adviser Firm of the Year’ for Greater London.

To discuss Auto-Enrolment with NLPFM contact Chad Atwal, Tel: 0207 472 5541 Email: autoenrolment@nlpfm.co.uk

 

How can Payroll Options help?

Payroll Options have developed a number of tools to assist you with Auto-Enrolment.

 

  • Once your staging date has arrived we are able to perform the complex task of Auto-Enrolment Assessment of your employees with every payroll thereafter to see who should be added to the pension scheme.
  • Employees will be added to the Auto-Enrolment Pension scheme at the appropriate time once any postponement periods have passed and have contributions calculated.
  • We are able to provide to you with data containing details of employees and their pension contributions that your pension company will require you to provide to them.

 

Our charges will increase by 5% from your Staging Date to cover the ongoing increase in time required to prepare your payroll and the additional systems required for Auto-Enrolment.

Please remember Auto-Enrolment is not something that can be ignored –start your preparations now.

Auto-Enrolment Newsletter

Workplace pension law has changed.  Every employer in the UK will eventually be required to help their workers to save for their retirement.  Employers will need to automatically enrol certain workers into a pension scheme and contribute towards it.


In very simplistic terms all of your existing employees and any new employee will be required to be a member of a compliant pension scheme, the employer must also contribute.  There are exceptions based upon age and how much your employee is paid.  An employee can opt-out from the pension scheme.  Please be aware however that this is a very simplistic view of Auto-Enrolment and in practice it is more complex.


When will this affect me? – Staging Dates

All organisations have a staging date for when they need to be ready for Auto-Enrolment.  The staging date is dependent on what the size of your organisation was in April 2012.  The Pensions Regulator should send you a letter approximately 1 year ahead of your staging date.

To establish the staging date for your organisation please visit (please see the front of your payroll reports for your organisation’s PAYE reference):

http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

Once you know your organisation’s staging date it is then time to start preparing for Auto-Enrolment.

 

How should I prepare for Auto-Enrolment

The process of Auto-Enrolment is complex and as such there is a great deal of information available via The Pensions Regulator website (http://www.thepensionsregulator.gov.uk). If you already have a pension provider consider discussing Auto-Enrolment with them, or you may consider it appropriate to appoint an external pensions administrator to assist your organisation with administrative requirements of Auto-Enrolment.

From our experience, so far, it is best to prepare for Auto-Enrolment as soon as possible.  We have been led to believe that organisations are finding it difficult to identify a pension company that is willing to assist with Auto-Enrolment if the staging date is imminent.

Payroll Options can assist by providing information to allow you, or your pension administrator, to evaluate your existing employees for Auto-Enrolment.  Once your scheme is operating we will enrol your employees and opt-out as instructed with your normal payroll instructions.   A pension report will detail the amount of contributions made and will be supplied with your normal payroll reports.

 

Will this cost my organisation money?

Inevitably Auto-Enrolment will add additional costs to your organisation, initially for the administration of the pension scheme but primarily in the contributions that the employer must make towards an employee’s pension.

 

What should I do now?

  • Establish your organisation’s staging date
  • Decide whether to appoint an external pension administrator
  • Assess existing employees for Auto-Enrolment.

Please remember Auto-Enrolment is not something that can be ignored – start your preparations now.

New National Minimum Wage Rates from 01/10/13

The national minimum wages has increased as of 01/010/2013

 

New rates from 01 October 2013:


  • £6.31 per hour for workers aged 21 and over – a rise of 12p
  • £5.03 per hour for 18-20 year olds – a rise of 5p
  • £3.72 per hour for workers above school leaving age but under 18 – a rise of 4p
  • £2.68 per hour for apprentices – a rise of 3p

 

 

For more information on the Nation Minimum wage please visit the government website

PAYE Rates and Thresholds for 2013/2014

Here is a quick look at the new rates and thresholds for tax year 2013/2014. For more details please visit our Tax and NI page or download the employer helpbook from http://www.hmrc.gov.uk/helpsheets/e12.pdf

 

PAYE

 

Tax codes suffix with “L” go up by 134 points making the new standard tax code 944L which gives you a tax free allowance of:

 

£9445 per annum

£787 per month

£182 per week

 

Annual Tax thresholds have changed to:

 

20% on earnings up to £32,010

40% on earnings from £32,010 to £150,000

45% on earnings above £150,000

 

National Insurance


Employees:  12% of earnings above £646 per month and 2% on earnings above £3454 per month

 

Employers: 13.8% of earnings above £641 per month

 

Statutory payments



SSP is £86.70 per week

 

SMP is the lesser of 90% of their average weekly earnings or £136.78 per week after the first 6 weeks

 

SPP is the lesser of 90% of average weekly earnings and £136.78 per week

 

Student Loans

 

Deductions are 9% of earnings above:

£16,365 per annum

£1,363.75 per month

£314.71 per week

Fundraising Update and Raffle Prize Winners

 

As the anniversary of the loss of Tanya’s passes, our month of fundraising comes to an end and we would like to say a massive thank everyone who has organised an event, gone to an event or brought a raffle ticket, with your help we have raised  £2,178.01 for Asthma UK.

 

The winning raffle tickets are:

 

 

Congratulations to all the winners, please send us a picture of you enjoying your prize to traci@payrolloptions.com and we will add them to our Facebook page