If you’re a startup or a small business, payroll might not be at the forefront of your mind. The exciting cut and thrust of entrepreneurial spirit seldom has time for something as pedestrian as your payroll provider.
But if you pay no heed to your payroll solution, it could end up costing you.
Payroll errors cost UK firms over £700million each year through overpayments to HMRC. That’s a lot of money for any business, but payroll errors can be a death knell for startups. Running out of money is known to be the second biggest reason for their failure.
So, getting payroll right is important.
As a leading provider of payroll solutions, from software to outsourcing, supporting startups and small businesses, we understand the challenges you face.
Here are a few questions we hear all the time – questions you should be asking too if you want to ensure accurate and cost effective payroll management.
1. What are my payroll requirements?
The first thing you need to establish is your needs. Take a look at the size of your startup and ascertain your requirements. Are you paying a lot of people? Are they weekly or monthly paid? Have you got the capacity (and time) to use and understand payroll software? Have you considered auto enrolment and the costs associated with that? Do you need international payroll?
Get an idea of the scope of your needs. This will give you an idea of how to ballpark your budget.
Speaking of budgets…
2. What is my budget?
Before you can go spending money, you need to know how much you have. As a startup, you should have allocated a specific amount of money for doing at least basic HR, the books etc. You need to decide how much of that budget will go towards finding a way to pay your people.
Bear in mind that some payroll solutions do more than just payroll. By investing a little more, you may be able to get your hands on a hassle-free system that manages all aspects of HR, as well as payroll. It pays to be flexible when it comes to your budget, but to do that, you need to have a budget in the first place. And if you keep things separate, look for free versions of really good essential HR software that only costs you once you exceed a certain number of staff.
Working out how much of your budget should be spent on payroll is more art than science, but based on your average overhead percentages, you can calculate a pretty good estimate.
3. What type of payroll solution is best for my needs?
A good payroll provider will, at the very least, aim to deliver a tailored service that meets your needs. There are many payroll solutions out there to choose from.
You may find that outsourcing your payroll is a good starting point. Using an outsourced provider frees up time and the administrative burden. You just send your payroll information and let your provider do the rest. This gives you access to technical expertise you don’t have and takes all the fussy data entry out of your hands.
On the other hand, payroll software may allow you to integrate your spreadsheets and existing systems. This provides a number of benefits, including accessibility, greater control and access to key insights. But, you need to be completely on top of legislation and payroll compliance with the HMRC to get the most from a piece of software. Get it wrong and this is where start ups get into trouble.
Some start ups take the best of both and have a part managed solution, using a bit of front end software, but leaving the administrative grunt to the experts.
Which one is best for you will be unique to your business. Startups aren’t all created equally and there are so many factors, beyond skills and budgets to consider.
One way to ascertain which solution is right for you is to speak to a payroll provider. Many providers, like us, are happy to offer no obligation advice on which options are best for your startup.
4. Will my payroll solution grow with my startup?
This question is key. Whether you’re engaging a payroll provider’s outsourced service or software solution, you need to know that today’s service will be just as good tomorrow’s. Successful startups expand at a rate faster than any other type of business, which can put pressure on 3rd party providers or restrictive software.
Before choosing a provider, make sure they’re equipped to handle the levels and rate of expansion you expect to experience from your startup.
But, be realistic. Don’t pay for an expensive piece of payroll software that has all the bells and whistles, but you find you won’t use until your company is considerably larger. Look for modular systems where possible, where the software allows you to bolt (and pay) for components only when you need them.
5. How do I know if a payroll provider is any good?
BACS accreditation, HMRC approved, ISO 27001 compliant, CIPP Assurance. All of these things are essential for payroll providers in the 21st century. Remember, by engaging a third party provider, even for software, you’re exposing your financial and employee data to risk.
Unless you’re 100% confident in the security and compliance of any service provider, be it payroll, pensions or banking, think twice about sharing data with them.
55% of the nearly 600 small- and medium-sized businesses surveyed by the Ponemon Institute reported being hit by a cyber attack in 2017. In addition to the cost of breaches, the survey revealed that negligent employees or contractors and third parties caused the most data breaches.
Always double check the security of your third party providers. Bad providers are the weak link in the chain. Good providers offer extra layers of protection. And just as importantly make sure that employee payslips are protected as well.
Payroll best practices for new startups
Process payroll on time, every time
Be on time with payroll each pay period. Paying people on time keeps staff happy and keeps you from making costly mistakes like overpaying employees (or worse, underpaying them) because you’ve rushed the payroll. Whatever you choose to do, get into good habits of sticking to regular payday processes.
File payroll taxes on time
Avoid costly fines and additional stress by filing your paperwork on time. Key tax dates include 6th April for the start of the financial year and 31st October. This is the deadline for submitting your self assessment tax return on paper.
As a startup, there are plenty of resources available from HRMC to ensure that you’re meeting your deadlines and staying on top of things.
Be meticulous and fill out forms correctly
Before you submit your payroll taxes, make sure you line up all those columns and lines, then triple-check to make sure that everything is in order. Human error is one of the biggest causes of payroll mistakes. And mistakes mean doing it all over again, which can cost a lot of time and money in the future.
Automation can only take you so far, but to really ensure accuracy, your need a trained eye. This is one of the key benefits to outsourcing your payroll – you can rest assured that your payroll is always accurate and always compliant.
Maintain squeaky-clean payroll records
Organise and find a secure place to keep your payroll data. Keeping your house in order is essential for turning a startup into a success. You need to have access to tax information, wage information, employee demographics, and other required documentation in order to meet your legal obligations.
You must submit regular payroll information and do annual reporting throughout your entire life as a startup. In addition, if regulators ask for employee information, having it available in a single, easy to find place is essential.
This might seem like a big task, but the good news is that you only have to set up payroll once. After that first time, you should get into a routine of handling your weekly and monthly payroll responsibilities, and then preparing quarterly and year-end tax filing and reporting.
Start your startup off right
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For small businesses where key stakeholders are often handling multiple roles, you need the power to manage HR anywhere at any time. Accessible on any device, Amity Essentials allows business owners to manage their HR at a time and place to suit them. Whether that’s on a site, travelling for business or at their desk.
The HMRC are taking action against disguised remuneration schemes. The HMRC understand that not everyone entered these arrangements knowing that they are tax avoidance schemes. However, they have now created the ‘loan charge’. This charge will affect anyone who has been involved in these loan schemes.
What are Disguised Remuneration Schemes?
Disguised remuneration schemes are tax avoidance arrangements that seek to avoid Income Tax and National Insurance contributions by paying scheme users their income in the form of loans.
Who is affected?
It has been used by employers and individuals, and also by contractors. Under these schemes, an estimated 50,000 workers – mostly contractors – were paid by way of a loan, an arrangement that was made to avoid tax and National Insurance contributions. HMRC said it never approved these schemes and had always said they did not work.
Of those affected, 65% work in business services, which includes IT consultants, financial advisers, and management consultants. Fewer than 3% work in medical services (doctors and nurses) or teaching and fewer than 2% work in the social and community services sector.
What is the 2019 loan charge?
The 2019 loan charge was introduced by Finance Act 2017 and is a tax charge on employment related taxable loans. It was introduced to tackle the disguised remuneration loan arrangements and will apply to all outstanding loans on 5 April 2019. Anyone who has received such loans instead of standard income and who has not taken action by then to either settle their tax affairs with HMRC or repay their loans will face the loan charge.
When does it need to be settled by?
The loans were never intended to be repaid, so they are no different from normal income and are taxable. HM Revenue and Customs (HMRC) encouraged people to come forward and settle their tax affairs before a charge on these outstanding loans came into effect on the 5th April 2019.
Payment can be spread over a number of years, however, the amount due can be paid over a period of up to seven years without the need to provide any detailed financial information. For payment arrangements of up to five years, the expected current year taxable income is less than £50,000.
There is no minimum time period for payment arrangements but HMRC will need to ask more information.
Can paying it back be avoided?
Some people will inevitably try and get around paying the loan charge which is likely to land them in more trouble.
HMRC is currently aware of several schemes that claim to get around the charge and is warning people not to use them. These schemes do not work.
What as an employer do you need to do?
Where the scheme user was in an employment-based loan scheme and the employer still exists and is UK-resident, they should tell the employer what the outstanding loan balance is by 15 April 2019. The employer will need to calculate the PAYE liability on that loan charge income and make payment to HMRC either by 19 April 2019 (by post) or 22 April 2019 (online). The employer will need to report the loan charge amount to HMRC via Real Time Information from 20 April.
Payroll is tricky. Using a knowledgeable trustworthy payroll provider will always help you to remain compliant with the HMRC. FMP regularly blog on matters affecting payroll in the UK, so you can stay ahead of the challenges that can affect your business.
What is digital? In short, it is all about technology and in this case the lack of it. Lloyds Bank UK Business Digital Index revealed that more than 100,000 charities lack basic digital skills, which is over half the registered charities in the UK. They also reported that there was a four percent rise in the number of charities that rated their digital capabilities as low. Not having these digital skills and practices in place can be very damaging to charities and can stop them from growing and being successful.
Although a lot of charities are lagging behind, some are already using digital technology to transform how they deliver their services and these charities are often pushing ahead of those that don’t. In the Charity Digital Skills Report 2018, it was found that unsurprisingly, funding is the number one barrier to a charity’s success, however, digital progress and skills are the second.
Lara Burns the Chief Digital and Technology Officer at Age UK stated “While acknowledging how hard the funding choices facing charities are at the moment, it’s worth considering how smart investment in the right digital focus can pay off – not just financially but in many other ways too. So, if your charity is in this position, a great starting place would be to review your digital strategy and how it could support your organisation’s funding growth or help create efficiencies. If you can make those investments, it will be worth it in the long term.”
HR and Payroll is often a time-consuming task for charities, as charities commonly have a mixture of full time, part time and volunteers working for them and they all require different payroll and onboarding processes. As charities aren’t working for a profit, they usually can’t afford to have a dedicated payroll manager that is clued up on all the newest laws and legislation, and you often find people who are not qualified trying to take care of it. In the report, we also saw that charities rated themselves as fair to low with using managing and analysing data and 47% rate themselves as fair to low with cybersecurity. These stats are worrying when thinking about GDPR and breaches. All these issues mean that managing charity payroll and HR in-house is a significant issue for charities.
There are a lot of free tools available today, such as the NCVO’s KNOWHOW website that offers free advice and support for voluntary organisations and can help you to learn how you and your employees can improve your digital skills and how you can use these to succeed.
Some charities might need a bit more help when it comes to their HR and payroll. Using HR and payroll software to help manage these processes can free up time for those involved to focus on other important things and ensure that it is managed correctly and easily. Outsourcing payroll is also a great way to take away the stress of payroll and you can feel safe in knowing that it is being handled by trusted payroll professionals, freeing up more of your employees’ time to focus on other important things.
FMP Global is an NCVO trusted supplier to the charity sector and provide payroll and HR services to many charities across the UK.
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I’ve been in payroll for the last four and a half years. I’m still genuinely bowled over by the dedication and commitment payroll people make to the success of a company. And it’s all under the radar. It’s time again to celebrate the great work they do.
Payroll people just sit in the background doing that vital time-sensitive job month in month out. They make sure every person in the company gets the pay they are owed on time, every time.
I’ve never seen a job become so complex as payroll over the last few years. I read recently about a payroll manager who had just retired after a glorious 40 year career, citing how the world of payroll has changed from a simplistic handwritten process to one that now covers so many more complex processes. Good luck and happy retirement for a job well done.
Understanding payroll can have enormous benefits in terms of the strategic direction a company takes both in the UK and internationally.
Looking at the transformation that has taken place in payroll over the last few years with it has been an incredible journey. A move away from paper to pdf to app based payslip systems, RTI, payrolling, auto enrolment, zero hours, the Gig economy, GDPR. The changes keep coming. Payroll has undergone some sort of industrial revolution of its own from a cottage industry to a complex legal and compliance jungle.
And then add in Globalization and it’s a whole new ball game for payroll people .
People make payroll work. And there are some excellent individuals, teams and companies working within the payroll sector.
Amazing Payroll People. Incredible innovation.
The Global Payroll Awards, this year in Budapest, celebrates amazing payroll people and the best of the best in payroll.
FMP Global has been shortlisted for two awards – The Global Payroll Supplier of the Year 2019 and the Innovation Award 2019 (for the myFMP app)
The Global payroll Supplier of the Year looks at customer and client satisfaction and a demonstrable understanding of the challenges posed by an international payroll. The judges also look at cost savings and business benefits to clients, and innovation in client solutions.
The Innovation Award looks for a clear narrative that demonstrates why technology has been implemented and how it is linked to broader payroll strategy. FMP Global’s myFMP App sets a new GDPR compliant benchmark for the industry. A team of Payrite App developers have seamlessly embedded the App to provide a value-added resource for employers and employees.
Many employers used unprotected email and post to deliver payslips. Under GDPR, FMP believed a better, faster and safer method of delivery was important in the new world. FMP’s products and services pay around 1.5million people. Getting the right innovative solution in place was crucial to our long-term strategy and success.
Employees now expect any information to be instantly accessible to them on their smartphone. According to the Office of National Statistics, most adults now access information ‘on the go’ using mobile devices. Employees have grown to expect that information they require is instantly accessible to them on their smartphone or tablet. We are able to manage so much of our ‘life admin’ on our mobile devices now; banking, email, travel plans, purchases and more. And it’s all driven by knowing how much we are paid.
Bang the drum for amazing payroll people today
I always bang the drum for payroll people when I can. The Global Payroll Awards just highlight the fantastic payroll people and great payroll work that goes on globally. Payroll keeps employees motivated and business thriving.
Amazing Payroll People. Isn’t about time you celebrated the work they do?
Gary Webb is the Marketing and Communications Director at FMP Global
By 4th April 2019 all companies with more than 250 employees must publish their gender pay gap report. Despite this, businesses are dragging their feet.
With just one week to the deadline, nearly two-thirds of companies still have not disclosed the average difference between what they pay male and female employees per hour.
In total, more than 10,000 of the UK’s large firms are expected to report, but just under 4,000 had done so by Wednesday morning, reported the BBC. Based on the figures so far, three out of four UK companies have a pay gap.
Based on the figures from last year, we know that financial institutions have some of the biggest gender pay gaps. Half of the large firms with the widest gaps are banks:
Barclays Investment Bank
Lloyds Banking Group
They all filed pay gaps of more than 30%. This means that for every £10 the average man working there earns, the average woman takes home less than £7.
What’s required of the Gender Pay Gap Information Regulations?
The regulations require employers to publish the following metrics:
Mean gender pay gap
Median gender pay gap
Mean bonus gap
Median bonus gap
Proportions of males and females who receive bonuses
Relative proportions of male and female employees in each quartile pay band
The way in which these measures are constructed may differ from your current internal reporting. Each of the metrics gives you a slightly different take on your gender pay gap, which helps paint the most inclusive picture.
Each is more meaningful if read alongside the others and in the context of your overall HR and payroll policies and practices.
Key gender pay reporting dates for 2019
The gender pay gap reporting deadlines for 2019 are:
4th April for private companies and charities
30th March for public-sector organisations
In the private and voluntary sectors, the regulations apply to employers in Britain with at least 250 employees on the ‘snapshot date’. The snapshot date is 5th April in each year.
In the public sector, the regulations apply to public authorities in England and to certain cross-border authorities and non-devolved authorities operating across Britain. The snapshot date is 31st March in each year.
Around 6% of organisations that had to publicly report their gender pay gap figures for 2017 did so after the spring 2018 deadline. 100% compliance was only achieved in August 2018.
How to report your gender pay gap data
First, you need to gather your data. The best way to do this is through your HR and payroll teams or outsourced payroll provider. They will have access to the data you need to determine your gender pay gaps.
You should also set up systems to continually monitor and report on your gender pay gap data in order to meet the continual reporting deadlines. This will also help your business internally.
Regular gender pay gap reporting allows you to see how well your policies and compliance champions are working. The last thing you want to be is amongst the 39% of businesses that are taking backward steps with equality in the workplace.
If there are issues, reporting will show that and you can address the issue before you next report to the government. Once you have your data, you need to submit it to the government before 4th April 2019.
The gov.uk website has a portal through which you can submit your data. If you got a letter from the Government Equalities Office, use the reference number and security code in the letter to register to use the service.
If you don’t have the letter, you can still register to use the service and wait for an identification number in the post.
Penalties for non-compliance
Non-compliance will amount to an unlawful act falling within the enforcement powers of the Equality and Human Rights Commission. As a result, you could face unlimited fines.
The Equality and Human Rights Commission aims to resolve non-compliance through correspondence with non-compliant employers. The Commission’s powers of enforcement are set out in the Equality Act 2006.
Honesty is the best policy
If you submit data that has not been calculated in accordance with the gender pay gap reporting regulations, you will be in breach of the regulations and subject to fines in the same way as those who publish no data at all.
While the Equality and Human Rights Commission initially intends to drive up reporting by focusing on employers who do not publish any data, it has the means to identify businesses who submit statistically improbable data and will consider taking action against them.
If a private or voluntary sector employer does not comply after the Commission’s initial correspondence, it will carry out an investigation into whether they have committed the suspected unlawful act, that is, a breach of the gender pay gap reporting regulations.
The House of Commons Library has published a useful research briefing on the gender pay gap which includes an assessment of the Commission’s enforcement powers in relation to gender pay gap reporting.
Will gender pay reporting actually improve gender pay gaps?
Is any of this reporting worth it?
Change takes time, but reporting to the Government has revealed positive results on other issues. Back in 2013, the Government required companies to measure and report greenhouse gas emissions. Since then, UK emissions are lower than 43% of 1990 levels – a dramatic change over a short time.
Meeting gender pay reporting requirements provides businesses with the insights and metrics they need to action positive change. You also get a better understanding of where your business sits in your industry from a societal perspective, allowing you to maximise reputation gains.
Ultimately, gender pay reporting educates business leaders in how they can change things for the better. Back in January, an analysis of the 2018 gender pay gap data found that gaps are narrowing.
The average difference between all employers’ 2017 and 2018 media hourly pay gap was 0.6 percentage points in favour of women.
However, the gap had worsened for women at 36% of the 600 organisations that had reported their data. Notable organisations that reported rising gaps included Virgin Atlantic, HSBC, Ofsted and the Department for Digital, Culture, Media and Sport.
So, there is still lots to do to address the balance, but reporting is having an impact. Most importantly, it is keeping the issue in the minds of employees and media. This keeps pressure on businesses to change things up and action policies to enforce change internally.
Top 10 Payroll Issues 2019
Read our eBook on the critical issues facing payroll and HR teams in 2019
In a creative move payroll outsourcing giant FMP is considering introducing hand delivered payslips to all client employees in a bid to combat worldwide concerns over data security of important payroll information, replacing their innovative ground-breaking app, myFMP.
The surprise move will mean that employees will receive their payslips from a team of ‘Payslip People’, who will confirm the identity of each employee before handing over the payslips.
The company may take on a team of over 20,000 Uber style employees who will undergo rigorous training and will need to pass credit and CRB checks before being employed on a per payslip delivery basis. Checks by the company will ensure that payslips are not dumped in a skip or passed to the wrong person. The FMP Payslip People will be employed for just 5 to 6 days a month and cannot deliver their own payslip to themselves. Global employees will have payslips securely flown to in country destinations before being locally delivered. Each employee will need to provide their own bike and get on it. The company will provide a sack.
Head of FMP’s Payslip People Joe King commented: “We’re really excited to be considering hand delivered payslips, especially launching the initiative on this day, April 1st, as protecting payslip information is no joke. In our trials the payslips were on the whole warmly received by employees. Feedback from some employees suggested their payslips came as a password protected PDF to their work email address. Whilst good if you are at work, it proved problematic when they were at home not working, so they were unsure how much they had been paid. Some employees were also so happy when we hand delivered their payslips they even gave us a kiss, as their normal postal payslips were often getting waylaid in the postal system.“
myFMP versus hand delivered payslips
Industry commentators are wondering why FMP would make this move, as their innovative app-based payslip delivery system myFMP delivers payslip information in a GDPR compliant way directly to employees’ mobile devices on pay day. With secure first time registration, multi layer protection and server side protection from malicious multiple login attempts the app provides secure access to view or download payslips the moment they are published
One commented “The myFMP app sets a new benchmark for payslip delivery. Now all you need to do is grab a smartphone or tablet and log into myFMP. Everything you need is there, all in one place and easy to read.
Using mobile technology to access the Internet is not a luxury anymore; it’s something we take for granted. According to the Office of National Statistics, most adults now access information ‘on the go’ using mobile devices. Employees have grown to expect that any information they require is instantly accessible to them on their smartphone or tablet. We are able to manage so much of our ‘life admin’ on our mobile devices now; banking, email, travel plans, purchases and more. And it’s all driven by knowing how much we are paid. It seems an unusual move. ”
Financial wellbeing can have a big impact on stress and work engagement. With financial wellness high on the agenda for many companies, getting information into employees’ hands as easily as possible can have major benefits. myFMP is the innovative new payslip delivery system, forming part of outsourced payroll services and the Payrite payroll software offering from FMP Global.
So, are hand delivered payslips the right move on April 1st?
As the tax year is coming to an end, next month we are going to see a lot of important changes for Payroll that employers need to be aware of in order to stay compliant and prevent any embarrassing mistakes.
National Living Wage and National Minimum Wage
With effect from 1 April 2019 we will see changes to the National Living Wage and National Minimum Wage.
The national living wage for workers aged 25 and over will increase to £8.21 per hour.
The national minimum wage for workers aged 21 to 24 (inclusive) will increase to £7.70 per hour.
The national minimum wage for workers aged 18 to 20 (inclusive) will increase to £6.15 per hour.
The national minimum wage for workers aged under 18 (but above compulsory school age) will increase to £4.35 per hour.
The national minimum wage for apprentices will increase to £3.90 per hour.
In April 2018 auto enrolment minimum contributions increased from 2 to 5 percent, with The Pensions Regulator suggesting that the change had a minimal effect on employees leaving pension schemes within small to medium employers. However, April 2019 sees another hike in contributions to 8%, with the employee this time paying 5%
Payslip law changes
Under new law laid before Parliament on Thursday 8th February 2018, The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was passed and comes into force from 6th April 2019. Employers will now be required to provide employees who are paid according to ‘time worked’, details of the number of hours being paid on their payslip this time.
“where the amount of wages or salary varies by reference to time worked’, the total number of hours worked in respect of the variable amount of wages or salary either as— a single aggregate figure, or separate figures for different types of work or different rates of pay.”
Trethiant Cymreig. Welsh Taxation
In 2017 Scotland broke away from the rest of the UK by introducing Scottish Tax.
In April 2019, similar powers will also be given to the Welsh Assembly. For the first time, it will be required to set Welsh tax rates in order to obtain its share of the wider UK tax slice.
UK employers will, therefore, have to operate three different taxation regimes covering Scotland, Wales and the rest of the UK (England and Northern Ireland).
New Student Loan Type
The current threshold for 2017-18 for Plan 1 is £18,330 and for Plan 2 is £25,000. The new threshold rates from 6 April 2019 will be: Plan 1 loans will rise to £18,935 Plan 2 loans will rise to £25,725
In 2019 the Department for Education will introduce a new loan type from 6 April, the Postgraduate Loan (PGL). The threshold for 2019/20 will be £21,000.
Termination Payment Changes
From April 2019 the Government will tighten the scope and treatment of termination payments. The plans to make any part of a termination payment over the sum of £30,000 subject to employer NICs is due to become law on this date. This change was delayed from April 2018.
The new rules are being introduced to simplify the current rules which incentivise manipulation and ensure employer NICs are due on payments above £30,000. An employer will be required to pay NICs on any part of a termination payment that exceeds the £30,000 threshold, and all payments in lieu of notice (PILONs) will be both taxable and subject to Class 1 NICs.
Failing to comply when new payroll rules are introduced can be costly for any business, so it is crucial that business owners and payroll staff stay up to date. Outsourcing to a payroll provider is a great way to give you peace of mind that your payroll is being taken care of correctly and it can remove the headache of keeping up with the ever-changing payroll legal requirements.
Top 10 Payroll Issues 2019
Read our eBook on the critical issues facing payroll and HR teams in 2019
Startups, get out your calendars! The new financial year is approaching and you need to be ready to meet your payroll, tax and compliance deadlines.
Around 50% of startups fail in their first four years. The primary reason for this is that there isn’t a market for their product. The second reason is running out of money.
Managing your finances as a business is essential to those first critical years. One of the ways you can keep your money flowing in the right direction is avoiding fines and penalties as a result of missing key submission dates. You should also be mindful of changes to payslip law to make sure you’re fully compliant.
Here are the key dates, your start-up needs to know for the new tax year:
Major dates for the 2019/2020 tax year
1st April 2019
Introduction of “Making Tax Digital for VAT”
Nearly 30,000 businesses have already signed up to the new service. It’s designed to give you a more integrated approach to business and tax. This is great for startups because it will reduce the time you spend on admin in the long run, so you can focus on running your business.
5th April 2019
Deadline to submit a PAYE tax rebate claim for the 2014/15 tax year.
If you overpaid income tax in 2014/15, this is your deadline to claim.
6th April 2019
Start of the 2019/2020 financial year.
Tax bands and Personal Allowance amounts announced in the Autumn Budget are implemented. This means that new tax codes are issued. All taxpayers should check their new tax code is right.
If you’re a solo operator, get your paperwork together for 2018/19 Self assessment tax return. You need evidence of all your income streams; including property, pension and earnings.
2018/19 PAYE tax rebate claim can be submitted to reclaim overpaid income tax.
31st May 2019
Self employed startups with employees must give them their 2018/19 P60 certificate.
Employed taxpayers should check that they have been issued with a 2018/19 P60 certificate.
6th July 2019
Deadline for resolution of 2018/19 payment settlement agreements.
Issue 2018/19 P11ds to your staff
Deadline for second payment on account of 2018/19 tax year, if you are self employed.
5th October 2019
SA1 form deadline, if you need to declare any property income.
CWF1 deadline to tell HMRC you are self employed.
31st October 2019
Deadline for submitting your self assessment tax return on paper. It’s also the deadline for any Capital Allowances claims for tools bought in the 2015/16 financial year, for PAYE taxpayers.
30th December 2019
Deadline to ask HMRC to pay self assessment tax through your PAYE tax code for 2017/18 tax year. Only available as an option if you have less than £3,000 tax to pay.
31st January 2020
Deadline for self assessment tax returns submitted online.
Deadline to complete payment of 2018/19 tax bill.
5th April 2020
Deadline to apply for 2015/2016 tax year PAYE tax rebate.
The 2019/2020 financial year ends and we go around again!
Missing a deadline?
Handling payroll is a time consuming task and late filing of forms or errors and omissions can all lead to expensive fines. New legislation can change what is required by a company, and it doesn’t take long for penalties to add up, wasting company resources and leading to extra administration and stress.
If you’re a solo start-up that’s missed a self-assessment deadline, don’t worry. HMRC has heard all the excuses in the book…
Self Assessment – Weird Excuses - YouTube
Our UK payroll service is cost effective for businesses of all sizes. We will both save you money on your payroll processing costs and ensure you avoid paying penalties. So, if your start-up is struggling to keep up with this year’s payroll dates and changes, get in touch.
Top 10 Payroll Issues 2019
Read our eBook on the critical issues facing payroll and HR teams in 2019
From the 6th of April 2019, new legislation – known as the Employment Rights Act 1996 will change how UK employers provide payslips to their workforce and will make things a little clearer and give a means for employees to see if they have been paid properly. Employers will now be required to provide employees who are paid according to ‘time worked’, details of the number of hours being paid on their payslip this time.
“where the amount of wages or salary varies by reference to time worked, the total number of hours worked in respect of the variable amount of wages or salary either as –
i) a single aggregate figure, or
ii) separate figures for different types of work or different rates of pay.”
There has been a lot of bad press focused on zero or low hour contracts. Some companies were requiring individuals to be available on demand, yet with no or limited guarantee of pay for that work. As a result, employers were not meeting their obligations with regard to deductions and employee rights.
Frances O’Grady, TUC’s general secretary, said “Overworking staff hurts productivity, leaves workers’ stressed and exhausted and eats into time that should be spent with family and friends. Bosses who do steal people’s time should face consequences.”
The new payslip law will make it easier for employees to see exactly how many hours they have been recorded as working and what they have been paid for those, so they can easily see whether they are working some hours for free or not. This could result in a reduced amount of free labour that we have seen recorded recently and ensure employees being paid fairly and correctly.
Not all employers provide hours information to their payroll or, if they do, choose not to show such information to their employees on their pay statement. This will need to change. Companies that have a competent outsourced payroll provider or use payroll software already will have had these changes already provided to them and will not need to worry.
Top 10 Payroll Issues 2019
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Many companies are still not offering learning and development opportunities to their staff. Not only does this leave them falling behind a lot of other companies who are utilising it, but it can also be detrimental to a company. So why is providing learning and development so important?
Improve Engagement Rates
It has been reported that 87% of employees are not engaged in their jobs worldwide. This is devastating news for employers, as this could be damaging their work performance. Learning and development have been credited to help keep employees engaged and satisfied with their job. The UK L&D Report in 2018 shows that 94% of those surveyed say that learning and development were critical to their success.
Employees who have access to training that can help them improve their performance are most likely going to deliver a better performance than those who don’t have this opportunity. Having this training can also help your employees address their weaknesses and improve. It means that you can train your current employees to take on certain responsibilities instead of outsourcing or hiring new talent, which can often be a lengthy and time-consuming task. Those companies with highly engaged employees outperform their competitors by around 147% in earnings per share.
Finding replacement staff can often be inconvenient and time-consuming, so keeping your current employees is valuable. Not having learning and development opportunities available can be why your employees are deciding to leave and move onto a different job. When leaving a position at a company, 25% of people state that it is due to a lack of training and development opportunities available to them.
Gain new quality staff members
Putting money into learning and development for your employees is also important to gaining new high-quality staff members, as Udemy’s study also found that 42% of employees say learning and development is the most important benefit they look out for in a new job.
It is no wonder that growing numbers of businesses are reinvigorating their commitment to Learning and Development strategies. This, however, is putting a strain on HR as they are often the ones who have to organise these programmes for employees.
Using HR software can be a great tool to assist learning and development and help your HR team stay on top of it all. Choose software that can track what courses your employees have done, create training event invitations and arrange and record any appraisals. Some software can even combine HR and payroll together, which can help your employees free up even more time to focus on other important tasks for the business and allows your HR and payroll departments to easily manage your employees and increase their efficiency.
Learning & Development
Read our eBook to learn how a good L&D strategy can help employees self-serve and become champions of their own development and in turn bring success to your company.