Archive for the ‘Payroll’ Category

Real time information and reporting

Sunday, April 7th, 2013

Real time information and reporting

QUESTION:

I run my own small business, and I pay my employees on the 12th of each month; therefore this year I will be paying my employees on 12 April 2013.  Their pay is for the month of March so I have calculated using month 12 allowances, but with the introduction of real time information I need to know how to make HMRC aware of this when submit my first real time PAYE data. I want to ensure I am doing things right.

ANSWER:

Unfortunately what you have described would be operating PAYE incorrectly.  If you are paying on the 12 April this is month 1 and not month 12.  Therefore when you have run the payroll correctly i.e. for the pay day on 12 April using month 1 your submission to HMRC will show the earnings paid etc. for month 1.

Make yourself familiar with the new changes! It’ll catch a lot of people out 🙁

FAQ about RTI payroll changes…

Thursday, March 21st, 2013

RTI Changes are coming up. There is no hiding, or burying your head in the sand. BIG BROTHER IS watching you. And if you slip you, you’ll get done. BUT, don’t worry…This blog will help you to know what to do…

There are a number of important preparatory steps employers need to take in good time before the launch in April 2013…

1. Data Quality

PAYE RTI requires complete accuracy of all employee data. So just make sure that you have the right information on employees. You cannot ‘guess’ their DOB e.g. 1.1.77 … no more of that. Check that you have the correct info on people, especially:

  • Full names, including middle names (abbreviations are no longer allowed)
  • NI numbers
  • Birth dates
  • Gender
  • Address
  • Number of hours normally worked (less than 16, 16 to less than 30, 30 or more, other – if number of hours varies significantly)
  • Regularly paid – regularly paid employees are paid each week or month and will be in almost all pay runs. Those who take more than three months off at a time, such as seasonal workers, should be set as irregular.

 

2. SOFTWARE

All UK payroll software has effectively had to become PAYE RTI compliant.

PAYE RTI compliant software will allow employers to submit RTI returns directly over the Government Gateway via an internet connection.

Make sure the software you use is RTI compliant.

Make sure that you are registered with: www.Gateway.gov.uk – so that you can make your submissions online.

 

FAQ … The answers to some commonly asked questions…

What does RTI? Mean?

RTI stands for ‘Real Time Information’

What is RTI?

RTI is the biggest shake up to payroll since PAYE was introduced in 1994. It is a new filing regime being introduced by HMRC, this will allow HMRC to track employers’ payments, increase the accuracy of PAYE deductions and provide up-to-date information on employees’ earnings.

Is there anything I need to do?

RTI requires certain information about all employees and their payments. If you haven’t already started to, you need to collect any missing data for your payroll.

The information we need is:

  • Full names, including middle names (abbreviations are no longer allowed)
  • NI numbers
  • Birth dates
  • Gender
  • Address
  • Number of hours normally worked (less than 16, 16 to less than 30, 30 or more, other – if number of hours varies significantly)
  • Regularly paid – regularly paid employees are paid each week or month and will be in almost all pay runs. Those who take more than three months off at a time, such as seasonal workers, should be set as irregular.

If you’re unsure whether you have what you need, please contact us ASAP to see how Boogles Ltd can help.

What happens if someone is on long-term sick or maternity leave?

After three months of a regularly paid employee not being paid, HMRC will automatically delete that employee’s details from the database. To prevent this from happening, when an employee receives an SMP1 or SSP1 form, you will need to set them as an irregular employee until they return to work.

I forgot to pay someone – what do I do?

This isn’t a problem as long as there hasn’t been an FPS submitted for this person.

(An FPS is a Full Payment Submission. Every payment made for every employee will require an FPS. So it is just what we call the information is sent to HMRC about payments to employees.)

I need to make an adjustment and pay the employee outside of the pay cycle, is this possible?

Though possible, this is now far more difficult than it used to be. You cannot simply undo the payslip as you could if the adjustment was to be made next time. Are you sure your employee can’t wait for this payment?

Why are they doing this ?!

Quite frankly – there’s lots of small businesses out there, getting their payroll wrapped round their neck… they’re paying people casually by cash and not including them on the regular payroll. There’s lots of people who have more than one job, and the government want to keep track of who is earning what. The government also want to make sure that a company is paying the correct amount of tax each month and not just ‘what they feel like’ or ‘what cashflow will allow’.

Plus it means, if they get the info throughout the year as they go along, then there’s no longer any need for year end forms like the p35, and people who are getting benefits e.g. Working Tax Credits, Job Seekers etc., will now we shown up the minute they’re paid, and the AMOUNT they’ve been paid… no need to wait until the end of the financial year or to make an adjustment if someone has been over/under paid in tax credits the following year.

Basically, it helps Big Brother to keep an eye on you!

🙂

 

RTI – Real Time Information … Payroll Changes

Thursday, March 21st, 2013

IN A NUTSHELL….

  • All UK employers (and pension providers) are affected by this change coming up
  • Payroll software will now automatically submit statutory PAYE returns to HMRC
  • CHECK your payroll software is RTI compliant, or use HMRC’s Basic PAYE Tools
  • Penalties apply for failure to submit returns e.g. 100 pounds!
  • Penalties issued automatically for ‘late’ submission via Government Gateway
  • RTI “a one way street” – no parallel operation… so no chance to go back and amend / edit / change something already submitted without it being a pain in the neck
  • Most (smaller) employers have no choice, and will be MANDADTED into RTI, April 2013
  • RTI returns need to reconcile with employee payments
  • BACS users submit an additional file via BACS

 

Payroll Costs on the Rise

Monday, October 1st, 2012

Be aware that Minimum Wage Regulations have increased in the UK. See here for the new levels. https://www.gov.uk/national-minimum-wage-rates

Also, make sure you brace yourself, for the Pensions changes set to come into affect – big firms first, and then the medium, and then the small… employers are going to have to start paying into the pension fund for staff. Its starts in 2012 and carries on into 2016 by which point everyone will be effected. See: http://www.thepensionsregulator.gov.uk/docs/intro-to-work-based-pension-changes-2011.pdf

Lots of SMEs owner-managers  are grumbling about not even having a pension themselves… let alone having to find money to pay into someone elses !! Tough! …. the country is broke, and the government are putting the onus back onto the people to save for their own retirement. If you are working full time, flat out and still don’t have enough money to set aside for your future pension… by the time you retire, do you honestly think your situation will have got any better? Or will you still be scrimping along?

A lot of people are just going to wind up and close their doors at this rate because these expenses seem to be on the rise…

But you can’t complain… we’ve been given ample warning… get your financial house in order right now. If you need help – contact us, and we can help you with your financial planning: admin@boogleslt.com

Has Your Payroll Been Done Correctly?

Monday, January 31st, 2011

There was a recent announcement in the news that the UK government somehow have managed to ‘lose’ or cannot account for around £1.3 billion pounds of National Insurance contributions that people have paid in!! This is very worrying.

You see, when you’re doing bookkeeping, you’re relying on the paper trail…. And if the submissions coming are incomplete e.g. the name says D Brown … and the National Insurance number is missing… then you have nothing but problems, and the payment will get put into the suspense account – never to be seen or heard of again…. That is, until D Brown comes to retire, and is told that she hasn’t paid in enough contributions.

Or she goes to claim benefits e.g. Housing or Council Tax – and they tell her that they’ve no record of her on the system. As long as she can dig out a few payslips, and a few p60s, she’ll be able to prove that she has:

a) indeed been working and

b) has paid (a lot) into ‘the system’.

Who is doing your payroll? Is it accurate? Complete? So many businesses shove this responsibility to ‘the office manager’ and then in years to come – anything can go wrong. It’s not just people who are sometimes accused of never paying anything into the system… sometimes, businesses receive the same accusation – and again, if you’re not making payments to the right place, or providing any reference, or have no proof about what has gone in…. you’re just storing up problems for the future.

Get in a reputable company like Boogles to do your payroll or outsource your payroll to a payroll and bookkeeping company like Boogles – who can ensure that your accounts will reconcile, you’re records will be accurate – and you’re payments won’t end up in the suspense account – unacknowledged. Check out our payroll prices and payroll service at: http://www.booglesltd.com/Payroll.html