Payroll changes for the 2018 / 2019 tax year

With a new tax year fast approaching there are some key changes to be aware of:

  • the tax free personal allowance will increase to £11,850 and the new emergency tax code will be 1185L.
  • the National Living Wage NLW (for those aged 25 & over) will increase from £7.50 to £7.83.
  • the National Minimum Wage NMW will increase as follows:
Employees aged 21-24 – from £7.05 to £7.38
Employees aged 18-20- from £5.60 to £5.90
Employees aged under 18- from £4.05 to £4.20
Apprentices aged under 19, or aged over 19 in the first year of their apprenticeship – from £3.50 to £3.70 
  • the minimum contribution rates for workplace pension schemes will increase to 5%, with a minimum of 2% employer contribution.  (eg. employer 2%, employee 3% contribution)
  • Statutory Sick Pay will increase from £89.35 per week to £92.05 per week.
  • Statutory Maternity, Paternity, Adoption and Shared Parental Pay will increase from £140.98 per week to £145.18 per week.
  • the repayment threshold for student loans will increase as follows:
    Plan type 1 loans from £17,775 to £18,330
    Plan type 2 loans from £21,000 to £25,000

Please do not hesitate to contact us if we can help you meet your payroll and workplace pension duties.

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Alzheimer’s Society Memory Walk 2017

Staff at Grant & Co are walking the 6k route at the Cheltenham Memory Walk on 8 October 2017, to help raise funds for the Alzheimer’s Society.

Some of us have first hand knowledge of how dementia can affect loved ones & family life, so this is a very worthy cause close to our hearts.

Any donation of any size would be much appreciated.  The link below will take you to our Just Giving page. Thank you for your kind support!

Just Giving Fundraising page

Do you understand how new pension laws affect your business?

In a recent press release The Pensions Regulator urged small and micro employers to check how auto enrolment affects them. It comes at a time when quarterly figures show a rise in the number of non compliance penalties being issued.

The penalties for non compliance are sizeable and can include a fixed £400 penalty and an escalating penalty of £50 to £10,000 per day depending on number of staff.

The Pensions Regulator detailed two employers who were fined £400 when they did not comply with their duties after failing to understand how the law affected them:

  • A garage owner failed to complete a declaration of compliance as they thought a staff member had done it.
  • A travel agent with no staff eligible for automatic enrolment failed to complete other duties such as completing their declaration of compliance after wrongly assuming the law did not apply to them.

The good news is that Grant & Co can help. Whether you need just a little assistance to meet your new duties, or a fully comprehensive service, our value for money solution can be tailored to meet your exact needs. We can:

  • Introduce you to our experienced payroll team who will ensure the smooth transfer of your payroll scheme to our systems
  • Assist with choice & set up of a compliant pension scheme
  • Assess your workforce
  • Calculate your costs
  • Handle statutory staff communications
  • Enrol your staff into your chosen pension scheme
  • Calculate & report pensions contributions
  • Complete The Pensions Regulator declaration of compliance
  • Manage your ongoing employer duties

Call us today for a free, initial consultation.

PSC register and the new CS01 forms

From April 2016 new rules were introduced which require companies to keep a register of people with significant control (PSC register).  From 30 June 2016 details of these PSCs have to be filed with Companies House as part of the new annual Confirmation Statement (CS01), formerly the Annual Return (AR01).

This means that an officer of the company is required to:

  • identify the PSCs and confirm their details
  • record the details of the PSCs on the company’s own PSC register
  • file the PSC information with the central public register at Companies House
  • update the information both on the company’s own PSC register and with Companies House when the next Confirmation Statement is due.

A PSC is an individual who meets one or more of the following conditions (with additional conditions applying in some circumstances):

  1. holds more than 25% of shares in the company
  2. holds more than 25% of voting rights in the company
  3. holds the right to appoint or remove the majority of the board of directors of the company

Failure to comply with the new rules is a criminal offence and could result in a fine or a prison sentence of up to 2 years.

More information on the new PSC requirements is available here, or please contact us for more guidance.

 

 

Trivial Benefits

From 6 April 2015 there will be a statutory exemption for certain non-cash benefits in kind costing up to £50.

Currently, there is no minimum cost threshold below which benefits are disregarded for tax purposes, but from 6 April employers who provides certain low value benefits-in-kind to their employees will, in some circumstances, become exempt from income tax.  This will remove the need for annual reporting of such benefits via P11Ds or PAYE settlement agreements (PSAs).
A trivial benefit will be exempt from income tax, provided that:

  • the benefit is not cash or cash vouchers per s75 ITEPA 2003
  • the cost of providing the benefit, or its average cost per person does not exceed £50
  • the benefit is not provided pursuant to a salary sacrifice scheme or any other contractual obligation
  • the benefit is not provided in recognition of the employee’s service.

The following are examples of items that may be regarded as trivial benefits:

  • a gift of flowers on birthdays, anniversaries or special events.
  • workplace drinks eg. tea, coffee available to all employees.
  • a Christmas turkey.
  • a bottle of ‘ordinary’ wine.
  • a box of chocolates.

Input VAT is reclaimable by the employer on the cost of trivial benefits made to staff.

An annual cap of £300 will be introduced for office holders of close companies and employees who are family members of those office holders. Those affected by this cap will be able to receive a maximum of £300 worth of trivial benefits in kind each year exempt from tax.

If you would like further clarification or advice on this subject, please do get in touch.

Growth Vouchers programme

Do you want professional advice to help grow your business, but worry about the cost? Grant & Co is an accredited Adviser for the Growth Vouchers programme and can help you take your business to the next level.  If you run a small business and are looking for professional advice in any of the following areas, the Growth Vouchers programme could help by giving you up to £2,000 to cover half the cost:
• Finance and cash flow
• Recruiting and developing staff
• Improving leadership and management skills
• Marketing, attracting and keeping customers
• Making the most of digital technology
Find out how you can get access to expert knowledge from an accredited Adviser through the Growth Vouchers programme by visiting https://www.gov.uk/apply-growth-vouchers for more info and to check if you are eligible.

Here are two examples of business owners who have taken advantage of professional advice and seen the benefits:
Find out how Marcus Whittington used the support from Growth Vouchers to double his profits:
http://www.greatbusiness.gov.uk/one-fine-stay-one-long-sell/
Read more about how Derbyshire-based catering company Saffron Catering used Adviser knowledge to expand their
business:
http://www.greatbusiness.gov.uk/cooking-up-a-growth-business/

Contact us today to arrange your consultation.

Voluntary payrolling of benefits in kind

As the 6 July deadline for filing forms P11D, P9D and P11D(b) passes for this year, HMRC is consulting on the introduction of a voluntary system of payrolling benefits in kind.

The government believes that payrolling benefits in kind instead of submitting forms P11D can offer substantial administrative savings for some employers and wishes to create a system that will enable employers to do so if they wish.  In particular three priority areas for consultation are:

  • private use contributions for company cars and fuel,
  • private medical and gym membership fees, and
  • one-off large benefits through transfers of assets.

The consultation document can be found here and the consultation closes on 9 September 2014.  HMRC are particularly keen to hear from employers who already have payrolling in place.

After the introduction of RTI and the additional burden of Workplace Pensions and Auto-enrolment we wonder if this move will be welcomed or just add further strain to increasingly stretched payroll departments.

If you would like further information on how to handle expenses and benefits, or would like to know how we can help you with our Payroll and Auto-enrolment service, please do get in touch.