Knowledgebase

From The Knowledgebase: Payroll

National Living Wage and National Minimum Wage rates increased on 1 April 2020. Previous rate Current rate from 1 April 2020 Increase National Living Wage £8.21 £8.72 6.2% 21-24 Year Old Rate £7.70 £8.20 6.5% 18-20 Year Old Rate £6.15 £6.45 4.9% 16-17 Year Old Rate £4.35 £4.55 4.6% Apprentice Rate £3.90 £4.15 6.4% If…

The government has sensationally delayed the private sector IR35 reform by 12 months, after pressure by peers and the Coronavirus, made not deferring the off-payroll rules unjustifiable. Steve Barclay, the chief secretary to the Treasury stated that this was not a cancellation of the controversial policy, but a necessary delay due to the Coronavirus outbreak:…

Who will be affected by these changes? IR35 changes are due to hit the private sector in April 2020, by operating via a company, individuals can remunerate themselves more tax efficiently.  However, sometimes depending on the contract the laws on whether the contractor is allowed to be a limited company can become a concern. Where…

When you have happy employee’s who have a stress-free time at work, they’re going to be more productive in general. As an employer, it’s your job to put procedures in place that will keep your employees happy and motivated. When doing this it’s important to realize that every workplace has its own dynamics and yours…

It is common knowledge that it is a legal requirement to allow your employees to have paid holidays and usually calculating holiday entitlements are pretty simple. An employee is entitled to 28 days for the full year, or you can use the online government holiday calculator to calculate the holiday entitlements if an employee starts/leaves…

From October 2019, proposed changes to VAT and the CIS are being planned within the construction industry. The Construction Industry covers a vast and wide-ranging sector of business in the UK and often includes a supply chain of providers, contractors and sub-contractors The government have announced that the proposal of a domestic reverse charge has…

A P11D is a form which employer’s use to report benefits in kind. These are items or services which an employer or employees receive from the company in addition to their salary. As benefits in kind increase the employers/employee’s salary, they may be subject to National Insurance contributions. It is important to know these contributions…

More organisations are looking for software that offer a service where employee’s can be sent their digital payslips. Who can blame them, we can do almost anything on our mobile devices now, so why wouldn’t we choose to receive our payslips via this device tool? There are many advantages of receiving digital payslips for the…

Here at TI Accountancy it looks a little like Santa’s workshop as our own little elves are busy preparing for the Payroll Year End. One of the elves tasks involves sending out P60’s for all our client’s employees.  At TI Accountancy we send out P60’s directly to the employees, safely and securely, through our payroll…

Payroll Allowance Changes for 2019/2020  If you are anything like me then you’ll like to know what is ahead so you can be prepared. I thought I would share the changes coming in from April 2019 in regard to your allowances for 2019/2020.  This will be handy to know if you are looking at certain…

Are you an Employer paying employee’s a fixed salary? There’s only 5 months to go until the new legislation comes in that requires all employees to be provided with itemised payslips. On the 8 February 2018, a new statute was laid before Parliament: The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018. Currently,…

Around 2.3% of the UK work force use zero-hour contracts and this number is rising. Employer’s usually employ people under a zero-hour contract to secure flexible employees when staff levels vary throughout the year.   It is useful to use zero-hour contracts where work demands are irregular or there is not a constant demand for…

In March 2014 the then coalition government first launched the Tax-Free Childcare Scheme with an anticipated rollout date of late 2015, however due to a legal challenge the launch was delayed until April 2017. Tax-Free Childcare gives eligible families up to £2,000 free per child towards childcare costs. Due to the new scheme the existing…

You’ve now doubt heard already that The Pension Regulator (TPR) are not only prosecuting employers for none-compliance of auto-enrolment but they have now started to prosecute employers for giving misleading information too. After a whistle-blower prompted TPR to investigate into Crest Healthcare they became the first employers to be prosecuted for knowingly providing false information…

With all businesses now reaching their auto enrolment staging date The Pension Regulator is using its powers to establish employers have fulfilled their Auto Enrolment duties. The watchdog issued 11,156 fixed penalty notices between January and March 2018 – up from 7,435 in the previous quarter which shows how serious they are in enforcing everyones…

I know I have mentioned it previously but I wanted to make sure you knew to inform any clients you have that minimum contributions increase from 06/04/2018 to 3% for employees and 2% for employers.   These increases are the new legal minimum payments that all employers are required to apply to their employee’s pensions….

Equal pay is in the forefront of many news headlines at the moment, and rightly so. The Equal Pay Act 1970 states that there must be no favourable treatment between men and women in regards to pay and conditions of employment. Similarly, the Equality Act 2010 prohibits discrimination in employment on the grounds of age,…

Auto Enrolment is set for a bit of a shake-up with plans to extend the scheme to all workers over the age of 18 and to include all earnings instead of qualifying earnings. The Government has laid out plans to do away with the lower earnings limit of £10,000 as well as reducing the minimum…

Check yours now As lots of small and medium sized businesses reach their staging date, a growing number of them are either setting up their scheme after their staging date has passed, or just not setting up the scheme at all! During the second quarter of 2017 nearly a fifth of employers (18%) who were…

According to the Resolution Foundation, some self-employed workers should be entitled to the minimum wage. The thinking is predominantly aimed towards the self-employed workers who are generally on short term contracts or freelance work, also known as the gig economy. According to the Resolution Foundation, about half of self-employed workers are classed as low paid…

We all know only too well that payroll can be a difficult animal to tame. In my opinion it is much easier to control payroll with the correct software applied in the correct manner.  Software will change and evolve every year as does the regulations and legislation surrounding payroll.  Choosing the right software or provider…

My employer Tracy, will often be heard throughout the office day but more so when it comes to one of her pet hates…The Mood Hoover! A Mood Hoover is an employee with a gripe and isn’t shy to let everyone in the office know about it.  They bang on about how things are so tough…

I find myself often wondering why employees might decide to move on to pastures new.  Are they not getting paid enough?  Do they not enjoy the job? Are there not enough prospects?  These are all questions employers will ask themselves if they find they have a higher rate of labour turnover than they want/expect. The…

As the year end trundles ever closer, employers must start thinking about the dreaded P11d submissions.  The P11d’s need to be completed and filed with HMRC by the 6th July 2017. If you’re in any doubt what a P11d form is and whether you need to complete one, let me give you the low down. …

Are you holiday savvy? Employees will often ask the question, “How many holidays do I get this year?” If you’re not ready for this, then it can be quite an awkward conversation. To simply answer, “I don’t know…” may not wash too well with your employees.  The best way to avoid this situation is to…

The rules surrounding Sunday working are not exactly straight forward. If employees have to work on Sundays, depends largely on their contract i.e if the contract states that Sunday is a working day then…Sunday is a working day. However, for employees that have been around their workplace for a while they may have the right…

Payroll is a function that is often undervalued by many businesses. It can be viewed as no more than a commodity by many people and even taken for granted at times.  Most employees will have a limited knowledge of payroll and probably see it as an administrative part of the organisation they work for. Payroll…

Employers need to keep a keen eye on the ever changing minimum wage.  For small companies, increases in the minimum wage can put quite a strain on the business but failure to meet minimum requirements can lead to being ordered to pay the arrears by HMRC and then a trip to court and fine if…

British workers are becoming less satisfied with the benefits provided by their employers, research has revealed. A study on perceptions of benefits and wellbeing schemes found 44% of employees are happy with the benefits they receive, compared to 53% last year. Although workers in London (55%) and Scotland (52%) appear reasonably satisfied, there are significant…

One in five employers are failing to sign its employees up to an auto-enrolment pension scheme. Putting them at risk of hefty fines from The Pensions Regulator, according to figures released by AE master trust Now: Pensions, to read more click here for the full article published by the FT Adviser. Are you ready for…

I recently read a blog online which rang very true in my mind. So many companies still don’t fully understand the world of Payroll processing and how much work goes into keeping up to date with the ever changing Payroll legislations. Finance, including Payroll, is a hugely sensitive subject and not only affects you (the…

HMRC have brought out new rules regarding submitting CIS. Please read below their recent article: Over 85% of contractors and their authorised agents are already sending us their CIS returns online, but from April 2016 everyone will have to use the online service.  HMRC will no longer be accepting any paper forms from that date….

Statutory maternity pay and statutory sick pay rates will not rise in 2016. The Government has proposed no annual increase in various statutory rates, including maternity pay, paternity pay, shared parental pay, adoption pay and sick pay. Check the rates HERE The current weekly rate of statutory maternity pay and other parental payments is £139.58, or 90%…

The government is set to roll out a refreshed auto-enrolment advertising campaign to make sure smaller companies are aware of their duties around workplace pension schemes. From July adverts fronted by former Dragons’ Den star and entrepreneur Theo Paphitis will be broadcast across the country. More than 47,000 large and medium-sized employers have already completed…

A study has been carried out on behalf of HMRC to establish small firms’ awareness about, and experience of, Employment Allowance and the impact it has had on their business. Since April 2014, eligible employers have been able to claim Employment Allowance of up to £2,000 per year to offset against their employer’s National Insurance…