Sep 2014
4
What will happen if you do not report payroll information on time?
HM Revenue and Customs (HMRC) have issued new guidelines for employers explaining about late/non filing penalties, inaccurate reporting and specific charges and how to avoid penalties.
The new guidance explains to employers that penalties will be introduced from 6th October 2014 for anybody that does not report their payroll information on time (late submissions).
These penalties can arise if a Full Payment Summary (FPS) is sent late, if the employer does not send the expected number of FPSs, or if an Employer Payment Summary (EPS) is not send when the employees are not being paid in any given period.
The guidance will also set out the limited circumstances in which a penalty will not be charged.
Sep 2014
3
Multi – Million Pound Payroll Fraud Unravelled
A UK Payroll administrator and his colleague have been jailed for 4 years after an audit was carried out in his London city based company. The Audit uncovered a small accounting discrepancy.
It unveiled more than 20 invented bank accounts which he had created fake companies and temporary staff for. He managed to swindle £2.9m over a 6 year period.
Most of the fortune was spent on casinos, chauffeurs, taxis, a difficult divorce and a Thai wife or fiancée!
For the full story read here: www.payrollworld.com
Aug 2014
29
How to simplify your communications duties in auto-enrolment
Many employers do not realise the amount of work involved in the communications aspect of auto-enrolment. In a recent study, it was revealed that communicating the changes proved to be the most challenging aspect post-staging date, with 19% of employers struggling with communicating changes to employees.
Many payroll software providers are updating their software to assist with auto-enrolment; however very few of them perform communication duties. When deciding on payroll software, employers sometimes forget to consider whether or not it caters for communications. By choosing payroll software that helps with communications, it can make the auto-enrolment process much easier for employers.
With auto-enrolment, you need to write to each member of staff individually depending on their employee category. Eligible jobholders, non-eligible jobholders and entitled workers all have different rights, and so each must receive different letters outlining their entitlements.
If postponement is used, you must also write to the postponed employees to notify them. Furthermore, if you already have a qualifying pension scheme in place you still need to write to staff members who are in the scheme to let them know that they are not affected. After staging, you must also monitor employees and communicate with any employee who becomes eligible for auto-enrolment for the first time or any new starters who are eligible.
It is your responsibility to make sure the right information gets to the right member of staff at the right time. There are time limits in place to ensure that employees have sufficient time to gather information on auto-enrolment so that they can make a well-informed decision.
The necessary communication required can be extremely time-consuming if left to do it on your own. However, by having payroll software that has the necessary letters ready to print for each individual it can make your job much easier.
Aug 2014
27
Withdrawal of HM Revenue & Customs (HMRC) 0845 helpline telephone numbers from December 2014
All HMRC helplines now have 03 numbers, and the majority of calls by customers use those numbers. To help create a smooth transition to the new 03 numbers, and minimise inconvenience for customers, HMRC have continued to use their 0845 numbers.
0845 numbering stops December 2014
In December 2014, the 0845 lines to HMRC helplines will stop being used, and all calls to HMRC helplines will need to be made using 03 numbers.
To prepare for that change, from late August, customers using 0845 numbers to call HMRC helplines will hear a message letting them know that the 0845 line will be closing. The call will still be handled as normal, but customers will be given the relevant 03 number for the helpline.
In December 2014, when HMRC stop using the 0845 numbers, customers who continue using those numbers will hear a message saying that the line is closed. The message will give them the 03 number for the helpline and the call will then end. The customer will need to dial the 03 number to receive the assistance they were looking for.
Aug 2014
13
Many SMEs Unaware of Auto Enrolment Burden
As of now, all organisations with 60 or more employees have reached their auto-enrolment staging date. Over the next four years, 1.3 million SMEs will be legally obliged to offer their workforce a pension scheme.
Unfortunately for smaller businesses, many are still unaware of the burdens of preparing for auto-enrolment.
The Shocking Truth
Recent research revealed some alarming statistics regarding how unprepared SMEs really are. According to the research:
• Two-thirds of SMEs (67%) have no idea when their auto-enrolment staging date is
• 49% of respondents understand little or nothing about the changes they need to make
• 32% of respondents felt they do not know enough about auto-enrolment to be able to determine its impact on their company.
It is worrying that so many employers are oblivious to the challenges ahead. A later staging date for SMEs is no reason for inertia; the earlier an employer begins to prepare the easier the transition will be. Planning for auto-enrolment can be a time-consuming exercise and does need considerable preparation. Employers need to consider a number of factors, including:
• How to prepare the company financially
• What pension scheme to opt with
• Using payroll to process pension contributions
Late fees may drive up financial burden
Preparing for auto-enrolment from a financial perspective is critical. Employers must pay contributions to their employees’ pension schemes, which will rise to a minimum of 3% of employees’ basic pay by 2018. However, additional charges may also apply, including potential fines if SMEs are late in setting up their auto-enrolment pension scheme.
Standard Life estimates that it could cost SMEs up to £34,000 to backdate contributions for just three months. The Pensions Regulator has the power to fine employers with less than 250 employees a maximum of £2,500 per day if they don't comply with their new duties on time. Late payment may also lead to employers liable to meet their employees' missed contributions if the employee is unwilling to do so.
All can be made easier...
Although these additional fees pose further risk to SMEs, it is not as dreadful as it sounds. By using a payroll provider, auto-enrolment is made easier and more understandable with less risk of making avoidable mistakes. By finding the right software to suit your company, administration charges can be kept to an absolute minimum.
To avoid penalties and costs, SMEs need to prepare themselves today. In a sea of additional charges and red tape, SMEs are advised to shop around to find the best pension scheme and payroll provider that suits their needs.
Many SMEs are unprepared for the financial burdens lying ahead, and to begin, employers are urged to become aware of their staging date as soon as possible. The earlier you begin to plan and seek expert advice, the less of a headache auto-enrolment will be for your business.
Aug 2014
7
Have you claimed your £2000 Employment Allowance?
An estimated 1.25 million employers are eligible for the £2,000 Class 1 NI rebate, which came into force in April this year, yet around 1 in 10 small businesses are not claiming the annual £2,000 Employment Allowance.
The process of claiming the allowance in BrightPay is very straightforward. View our online support or call us if you want to find out how to claim.
Aug 2014
6
Call for RTI relaxations for small employers
The Chartered Institute of Taxation (CIOT) has made this submission to review the competitiveness of tax administration in the UK being conducted by the Office of Tax Simplification (OTS).
The CIOT says that their clients find that the reporting of realtime information as being, “too prescriptive, time consuming and even unworkable at times”. They are looking for a permanent concession to allow small employers to report monthly , rather than at the time of each payment of salary or wages.
Aug 2014
1
Thesaurus Software enters corporate partnership agreement with The Start Up Loans Company
Thesaurus Software is delighted to announce that it has entered into a corporate partnership with The Start Up Loans Company.
Through this exclusive arrangement, Start up Loans' clients will be offered free payroll software and support.
The Start Up Loans Company is a UK government funded initiative aimed to help new businesses by offering loans at attractive rates for the purpose of start up funding. Start Up Loans also helps with discounted and/or free products, services and mentoring which the start ups require to get up and running. This is where Thesaurus Software comes in with its free offering of BrightPay payroll software.
The Start Up Loans Company has funded and guided over 19,000 new businesses since its inception two years ago. Approximately 40 new businesses are started a day through the scheme.
Jul 2014
28
Failure to complete end of year declaration 13/14
HMRC have now provided a statement about the small number of employers who did not complete the end of year questions and declaration when submitting their final FPS or EPS for 13/14.
HMRC expects all employers to comply with their legal obligations. Where the final indicator has not been completed but all other obligations are met , HMRC will automatically process the return and calculate the final liability (if any). Employers who fail to complete the end of year questions & declaration will miss an opportunity to demonstrate their low risk status in every respect. This failure will feed into the compliance risk assessment processes.
At the moment HMRC do not have an plans to contact employers who fail to complete the final submission indicator. HMRC are continuing to educate employers to make sure that all of their RTI submissions are full and complete and that they meet their legal obligations. They have said they will monitor the situation and consider whether any further action is required.
Jul 2014
15
Class 1A NIC payment for 13/14 deadline 22nd July
Employers should make sure they pay 2013/14 Class 1A National Insurance contributions (NICs) by the deadline of 22 July for electronic payments or 19 July for cheques. If they do not they may get a late payment penalty. Employers should check they have the right reference number to help the payment go straight through.
Ways to pay PAYE/NICs
HMRC strongly recommends that you use an electronic payment method.
Paying electronically is fast, secure and convenient provided you use an accurate reference number - and it's mandatory for employers with 250 or more employees.
It's your responsibility to make sure payments are made on time, whichever payment method you use. You may be charged interest and a penalty if your payment isn't received by the deadline.
HMRC counts all of the payment methods listed below as electronic:
• Direct Debit
• Online debit or credit card using BillPay
• Bacs Direct Credit
• Faster Payments by online or telephone banking
• CHAPS
• GBS Transfer
• Bank Giro
• payment at the Post Office
You can find out more about these and other payment methods by reading the guide 'How to pay PAYE/Class 1 National Insurance/CIS'.
