As the summer season approaches, many businesses in the UK bolster their workforce with seasonal and temporary staff to handle increased demand. While this influx of staff is essential for meeting business needs, it also brings additional responsibilities, particularly concerning workplace pensions. At Alderley Payroll Services, we understand the intricacies of payroll management and are here to help you navigate these responsibilities smoothly.

Automatic Enrolment: A Must for All Employers

One of the key obligations for employers is to check if their seasonal or temporary workers are eligible for automatic enrolment into a workplace pension. This is not a one-time task; employers must individually assess each worker every time they are paid. This requirement applies to all staff with variable hours and pay, regardless of whether they are employed for just a few days or for a longer period.

Consequences of Non-Compliance

Failure to comply with workplace pensions duties can have serious repercussions. Initially, employers who do not meet these requirements may receive a warning notice with a specific deadline to comply. Ignoring this warning can lead to fines, which can quickly add up and impact your business financially. Therefore, it’s crucial to stay vigilant and ensure that all eligible staff are assessed and enrolled as required.

Postponement: A Useful Tool for Short-Term Staff

For employers who hire staff for less than three months, there is an option to use postponement. This allows you to delay assessing these employees for automatic enrolment until the end of a three-month postponement period. Postponement is a valuable tool that can simplify the management of short-term staff, giving you time to determine whether their employment will extend beyond the initial period.

How Alderley Payroll Services Can Help

Navigating the complexities of workplace pensions, especially with a fluctuating workforce, can be daunting. At Alderley Payroll Services, we offer comprehensive payroll solutions tailored to your business needs. Our services include:

• Individual Assessment of Staff: We ensure that every seasonal or temporary worker is assessed accurately and timely, every time they are paid.
• Management of Postponement Periods: We help you effectively implement postponement for eligible staff, ensuring compliance while easing your administrative burden.
• Expert Advice and Support: Our team of payroll experts is always on hand to provide guidance and answer any questions you may have about workplace pensions and compliance.

Stay Informed and Compliant

It’s essential for employers to stay informed about their obligations under workplace pension regulations. To learn more about postponement and who needs to be enrolled, visit our auto enrolment page or contact our team directly. At Alderley Payroll Services, we are committed to helping you maintain compliance and manage your payroll efficiently, allowing you to focus on what you do best – running your business.

Ensure your business is prepared this summer. Let Alderley Payroll Services take the hassle out of payroll and pension compliance so you can enjoy a smooth and successful season.

Streamline Your Business with Alderley Payroll Services

Managing payroll can be a real headache, but at Alderley Payroll Services, we make it easy. We offer a range of services, including accurate pay calculations, pension administration, and processing new hires and leavers. We handle everything from weekly to monthly payroll, RTI filing, and year-end reports like P11 and P60. Plus, we provide expert payroll advice!

Comprehensive Payroll Solutions

We are committed to providing accurate and timely payroll processing, ensuring that employees are paid correctly and on time. Our services include:

• Accurate Pay Calculations: Ensuring every penny is accounted for, from regular wages to bonuses and deductions.
• Workplace Pension Administration: Managing your pension schemes with precision.
• New Starter and Leaver Processing: Handling the setup for new hires and P45’s for departing employees.
• Flexible Payroll Frequencies: Catering to your preferred schedule, whether weekly, 2-weekly, 4-weekly or monthly.
• RTI Filing and Year-End Reporting: Including P11 and P60 reports, keeping you compliant with HMRC requirements.
• Expert Payroll Advice: Offering insights and guidance to optimize your payroll operations.
• Bank File Preparation: Streamlining employee payments and HMRC tax payments.

Additional Services

We go beyond basic payroll processing, offering:

• PAYE Scheme Application: Assisting in setting up your PAYE scheme with HMRC.
• Subcontractor Verification: Ensuring compliance and accuracy for payments to subcontractors.
• Cloud Services: Providing modern, cloud-based solutions for easy access and management of payroll data.
• Employee & HMRC payments: Through our partnership with Modulr we can make payments to employee’s and HMRC.

Why Choose Alderley Payroll Services?

• Accuracy: Known for our meticulous attention to detail, providing accurate payroll processing.
• Flexibility: Tailored services that fit the specific needs of small and medium sized businesses (SMEs).
• Affordability: Competitive pricing with no hidden fees or long-term contracts.

We are dedicated to making payroll management a hassle-free experience, allowing you to focus on growing your business. For more information on how we can support your business, visit our services page.

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Alderley Payroll Services is your partner in ensuring smooth, compliant, and efficient payroll operations, tailored to the unique needs of your business. Let us take the burden off your shoulders so you can concentrate on what you do best.

As a payroll bureau, keeping you informed about the latest updates from HMRC is our priority. The following information is based on the July 2024 issue of the Employer Bulletin. Here’s a comprehensive overview of the recent changes and guidelines that PAYE customers need to be aware of.

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Changes to PAYE Tax Repayments: What You Need to Know

Effective from 31 May 2024, HMRC is changing the way it repays PAYE customers who are eligible for repayments. Previously, employees who received a tax calculation letter and did not claim their repayment online would automatically receive a cheque after 21 days. This will no longer be the case.

New Process: Customers must take action to request their repayment. You can claim your repayments online via the tax overpayments and underpayments service. If you prefer a cheque, you can request one through this process.

Operating Payroll: Real Time Information for Off-Payroll Working (IR35)

The off-payroll working rules (IR35) have been established to ensure that individuals working through intermediaries like Personal Service Companies pay similar Income Tax and National Insurance contributions as regular employees.

Key points include:

• Responsibility Shift: From April 2017, public sector organisations became responsible for determining IR35 status. From April 2021, this responsibility extended to medium and large-sized private sector organisations.
• Payroll Inclusion: Deemed employees must be added to payroll and reported via Real Time Information (RTI) with an off-payroll worker marker. This ensures accurate tax treatment and annual tax reconciliation.
• Loan Repayments: Deemed employers should not deduct student or postgraduate loan repayments; these are managed by the employees through self-assessment tax returns.

For more detailed guidance, refer to HMRC’s additional resources on operating PAYE within the off-payroll working rules.

Payroll Giving: Enhancing Your Corporate Social Responsibility

Payroll Giving allows employees to support charities directly from their salary with tax relief. Employers can set up a scheme by contacting an approved Payroll Giving agency.

Reporting Advances of Salary: New Legislative Requirements

From 6 April 2024, salary advances must be reported to HMRC’s RTI system along with the remainder of the salary on the contractual payday. This applies if:

• The salary is paid at regular intervals between one week and one month.
• The advance represents work already undertaken.
• The remaining salary is paid on the regular payday.

P11D and P11D(b) for Tax Year 2023 to 2024: Deadlines and Submission

By 6 July 2024, ensure you report any Class 1A National Insurance contributions owed for the tax year ending 5 April 2024. All submissions must be done online. Payments for Class 1A NICs must clear HMRC’s account by 22 July 2024.

Enhanced Self-Serve Time to Pay Service

HMRC has enhanced its online services to help PAYE and VAT customers pay their dues. If you are unable to pay on time, you may set up a payment plan online if:

• You owe £50,000 or less.
• Your debts are less than 5 years old.
• All submissions and returns are up to date.

For a complete list of eligibility criteria please refer to the July 2024 bulletin.

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Keeping abreast of these updates ensures compliance and smooth operations within your payroll and tax responsibilities. If you have any questions or need assistance, feel free to contact us. We’re here to help you navigate these changes effectively.

As we move into the 2024-25 tax year, it’s important for individuals and businesses alike to stay informed about the changes and updates to the UK income tax thresholds. These thresholds dictate how much tax you’ll pay on your earnings and can significantly impact your financial planning. In this blog post, we’ll break down the key income tax bands and thresholds, highlighting what’s new for this fiscal year.

What Are Income Tax Thresholds?

Income tax thresholds determine the rate of tax you’ll pay on different portions of your income. In the UK, income tax is structured progressively, meaning that higher earners pay a higher percentage of their income in tax.

The Tax Bands for 2024-25

For the tax year 2024-25, the income tax thresholds are as follows:

1. Personal Allowance: Up to £12,570
   • The first £12,570 of your income is tax-free. This is known as the personal allowance, and it remains unchanged from the previous year. It’s worth noting that the personal allowance may be reduced if your income exceeds £100,000.
2. Basic Rate: £12,571 to £50,270
   • Income within this range is taxed at 20%. This threshold also remains the same as last year. For example, if you earn £40,000 a year, you’ll pay 20% tax on the amount over £12,570, which is £27,430.
3. Higher Rate: £50,271 to £125,140
   • Earnings between £50,271 and £125,140 are taxed at 40%. If your income falls within this band, you’ll pay a higher rate on the portion that exceeds £50,270.
4. Additional Rate: Over £125,140
   • Any income over £125,140 is taxed at 45%. This highest rate of tax applies to the UK’s highest earners.

Changes and Considerations for 2024-25

While the income tax bands have remained stable compared to the previous year, it’s important to consider other changes that might affect your tax liability:

1. National Insurance Contributions (NICs): Changes in NICs thresholds and rates can affect your overall tax burden. For 2024-25, make sure to review the updated NICs information.
2. Pension Contributions: Tax relief on pension contributions can affect your taxable income. Contributing to a pension scheme can reduce your taxable income, potentially lowering the rate of tax you pay.
3. Allowances and Deductions: Other allowances and deductions, such as the Marriage Allowance, can also impact your overall tax liability. Keeping abreast of these allowances can help optimize your tax position.
4. Dividend and Savings Allowances: If you receive income from dividends or savings, be aware of the respective tax-free allowances and rates. For 2024-25, the Dividend Allowance remains at £2,000.

Conclusion

As a payroll bureau, our priority is to ensure that payroll processes are accurate and compliant with the latest tax regulations. Understanding and implementing the updated income tax thresholds for the 2024-25 tax year is crucial for maintaining compliance and avoiding potential tax liabilities and penalties.

Moreover, understanding these tax thresholds is beneficial not just for businesses but also for individuals. Knowing how income tax works helps employees understand their payslips better and manage their personal finances more effectively.

By staying informed about the current tax bands and thresholds, we can businesses run smoothly and efficiently. We are committed to providing clients with the best possible service and support, ensuring that all payroll calculations reflect the latest tax laws and regulations.

The National Minimum Wage (NMW) and National Living Wage (NLW) rate increases for 2024/25 have been announced.

As you will see from the table below the NMW bracket covering ages 21-22 has been removed and now the National Living Wage includes workers form 21 and over.

HMRC provides a host of webinars that discusses NMW and some of the more common errors seen. These are well worth checking out along with the detailed guidance on the HMRC website.

As we get closer to the new tax year the HMRC bulletins become a vital resource to understand the changes that are coming and to ensure they are implemented in time.

End of year reporting.

This issue covers the end of year reporting process and the deadlines. It’s vital the last FPS or EPS of the tax year includes the indicator that you are making the final submission for the tax year. You have until the 19^th April to file this and it will be dependent on the software and point in time whether an FPS or EPS is used.

Employees also need to be provided with their P60s by the 31^st May. At Alderley Payroll Services we provide a year end file pack which contains various documents and statements along with the P60s which are very useful to pass onto your accountant.

Employer payment booklets

HMRC will no longer provide PAYE payment booklets from the 2024-25 tax year. Employers who previously used these booklets will now need to make the payment either via cheque or online payment.

Scottish Income Tax – 2024-25

HMRC have provided a link in the bulletin to the new Scottish Income Tax rates for 2024-25, which you can find here.

As well as the areas discussed above the February issue also addresses many other topics such as  the changes to the National Insurance rates from January 2024, reporting expenses and benefits termination payments.

It’s expected that from 6^th April 2024 there will be statutory leave for carers. Employees who care for a dependent with long-term care needs will be able to take anything from half a day to 1 week’s unpaid leave.

The employee will not need to provide evidence as to why the leave is needed and they will be entitled to this from the 1^st day of employment.

The draft regulation can be found here.

Chancellor Jeremy Hunt announces employees NI is reducing from 12% to 10% from 6^th January 2024!

From April 2024 the National Living Wage will increase to £11/hr.

The National Living Wage is applicable for employees aged 23 and over and currently stands at £10.42/hr.

The Chartered Institute of Payroll Professionals (CIPP) have released a very useful tool to help people understand their payslips.

On first view a payslip can often look confusing and it’s easy to simply look at the net pay figure and ignore everything else. But understanding your payslip will give you an insight into how your net pay is achieved and provides you the opportunity to spot any errors, e.g., you have been paid for 80 hours but you worked 85 hours.

Just click here to check out the new tool.