Change to Employment Allowance

As of the 6th April 2016, selected companies across Wales will no longer be entitled to claim Employment Allowance. As a specialist in payroll, Swansea accountancy firm Bevan & Buckland has provided essential advice on how the changes could affect businesses from various industry sectors.

The legislative update applies to one director limited companies, not one director only on the payroll, receiving a salary above the Secondary Threshold for Class 1 National Insurance contributions, which sits at £156 per week for the 2016/17 tax year. “It’s important to note that the change to this eligibility criteria only affects limited companies, meaning self-employed individuals will be unaffected. If you are affected by the changes however you must take steps to stop your Employment Allowance claim at the start of the tax year. This adjustment can be made using your payroll software,” said Tina Davies, Payroll Manager at Bevan & Buckland and Chartered Institute of Payroll Professionals Member.

To stop your claim simply select ‘no’ in the ‘Employment Allowance indicator’ field of the payroll software, and submit an Employment Payment Summary (EPS) to HM Revenue & Customs (HMRC). These changes will not affect any claims made in previous years.

“After your software has been updated and HMRC informed, you must ensure you pay the full amount of employer Class 1 National Insurance contributions (NICs) without deducting the Employment Allowance. Should the circumstances of your organisation change with more than one employee or director earning above the Secondary Threshold, your claim can be processed and Employment Allowance applied for the entire tax year, even if these changes come into effect during the tax year,” concluded Tina.

For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

 

New Dividend Allowance will affect PAYE tax codes

New Dividend Allowance will affect PAYE tax codes

From 6 April 2016 the Dividend Tax Credit will be replaced by a new Dividend Allowance in the form of a 0% tax rate on the first £5,000 of dividend income per year. This tax will be collected automatically through PAYE in most cases.

As announced in the Summer Budget 2015 a new Dividend Allowance in the form of a 0% tax rate on the first £5,000 of dividend income per year is to replace the Dividend Tax credit from 6 April 2016. HMRC’s Policy Paper provides details:

UK residents will pay tax on any dividends received over the £5,000 allowance at the following rates:

• 5% on dividend income within the basic rate band
• 5% on dividend income within the higher rate band
• 1% on dividend income within the additional rate band

Dividends received on shares held in an Individual Savings Account (ISA) will continue to be tax free.

The finance Bill This legislation will modernise, reform and simplify dividend taxation. Only those with dividend income over £5000 per year, or those who are able to pay themselves dividends in place of wages, will pay more tax.

The majority of non-taxpayers and basic rate taxpayers do not currently need to inform HM Revenue and Customs (HMRC) of their dividend income. From April 2016, individuals who receive dividends between £5,001 and £10,000, and who need to pay tax on those dividends at the basic rate, will have to inform HMRC of their dividend income for the first time. This number is estimated to be fewer than 8,500 customers. (Individuals with more than £10,000 of dividend income are already required to be in Self Assessment).

Around 2 million individuals are expected to have some tax to pay on their dividend income after April 2016, compared to 1.8 million if these reforms had not been put in place. This tax will be collected automatically through PAYE in most cases, although further details will be published in good time ahead of any tax being due.

For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Automatic enrolment contribution increases delayed

Automatic enrolment contribution increases delayed

The Chancellor announced in the Spending Review and Autumn Statement 2015 that the Government is aligning two scheduled increases in the minimum level automatic enrolment contributions with the start of the tax year.

To simplify the administration of automatic enrolment for the smallest employers in particular, the next two phases of minimum contribution rate increases will be aligned to the tax years. Instead of increases taking place in October, they will now occur in April of the following year.

Under the current timetable minimum level contributions are scheduled to rise from 2% to 5% in October 2017, and from 5% to 8% in October 2018. These increases will now take effect in April 2018 and April 2019.

“We keep abreast of the latest developments in payroll so you don’t have to, so seeking advice from our payroll department is always recommended for businesses that are unsure about the new tax year changes to the minimum wage and its enforcement. Visit us in branch or contact our Swansea, Pembroke or Haverfordwest offices today to discover more about our payroll bureau service.”

For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

New and simplified Gift Aid Declaration

HMRC has just released a new and simplified Gift Aid Declaration.

This has particular implications for churches holding stocks of paper Gift Aid forms and envelopes.

The new model declaration has now been published on gov.uk. Links to the model declaration and enduring model declaration can be found at https://www.gov.uk/guidance/gift-aid-declarations-claiming-tax-back-on-donations

The new declaration will apply to all new donations. Declarations that are already in place do not need to be updated.

HMRC recommends that all charities, including churches, use the wording of the HMRC-approved model declaration. However, charities remain free to adapt the model declaration, for example to include their own branding or additional messages.

Please note that Churches holding stocks of printed materials using the previous model declaration may only continue to use these until 5 April 2016.  From 6 April 2016, the new declaration must be used. Incorrect declarations may result in Gift Aid claims being invalid.

Links to samples of the new Declarations can be found here: http://acat.uk.com/news.html

If you require further information please contact Harri Lloyd Davies on 01792 410100.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Employers need to keep up to date with Minimum Wage Regulations

Employers are being warned to keep up to date with minimum wage changes and penalties.

With the government offering an early preview of what is to come from the Treasury, the introduction of tougher penalties for employers not paying workers the minimum wage or the soon-to-be introduced National Living Wage didn’t go unnoticed.

As an experienced accountancy practice serving Swansea, Cardiff, Haverfordwest, Pembroke, Carmarthen and St David’s, Bevan & Buckland has made it their duty to keep employers informed about what to expect from the National Living Wage and its enforcement next April.

“With the introduction of the National Living Wage in 2016 and the new minimum wage, set to increase from £6.50 to £6.70 next month, it’s safe to say that the payroll world is changing for businesses up and down the country,” said Tina Davies, Payroll Manager at Bevan & Buckland.

“But it is the enforcement of both the National Living Wage and the minimum wage that is sending shockwaves throughout a number of industry sectors.”

The government recently announced that it plans to double the enforcement budget for non-payment of the National Living Wage and the National Minimum Wage.

Penalties for non-payment will doubled, from 100 per cent of arrears owed to 200 per cent, whilst a brand new team within HMRC will pursue criminal prosecutions for those deliberately not paying workers correctly.

“Enforcement doesn’t end there; HMRC will also be granted the power to disqualify employers from being company directors for up to 15 years,” warned Tina.

“We keep abreast of the latest developments in payroll so you don’t have to, so seeking advice from our payroll department is always recommended for businesses that are unsure about the new tax year changes to the minimum wage and its enforcement. Visit us in branch or contact our Swansea, Pembroke or Haverfordwest offices today to discover more about our payroll bureau service.”

For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Our Payroll Team are in the final!

Our payroll team have been nominated in the best Bureau/Service provider category.

Payroll World Awards 2015 finalists revealed 30 July 2015

The shortlist for the 2015 Payroll World Awards, sponsored by Intuit QuickBooks, has now been unveiled, with the winners set to be announced on 12 November at London’s Tower Hotel.

The judges selected the final list from a record number of entries following the introduction of the new, simplified entry process.

The diverse shortlist means specialist providers such as Symatrix and PaycheckPlus compete alongside well-known payroll names like Ceridian and MidlandHR.

The Payroll World Awards 2015 will also see a number of new categories introduced, including ‘Auto-enrolment Engagement’, ‘Best Company to Work for in Payroll’, ‘Best Payroll Support Team’ and ‘Best International Payment Provider’.

Chris Fitzgerald, Payroll World managing director, said: “The judges really had their work cut out selecting the shortlist from a record number of entries, and they now face the even more difficult task of selecting the winners from a very high standard of finalists.

“It’s exciting to see such a diverse mix of familiar names and new entrants on the shortlist. This, the fifth year of the Payroll Awards, is set to be the best yet and the most fiercely contested.”

Bevan & Buckland have been nominated in the Bureau/Service Provider category.

 

Payroll Team Award – Bureau/Service Provider Sponsored by The people’s pension

• Anderson Anderson & Brown
• Bevan & Buckland
• Bond Payroll Services
• Brown McLeod
• Ceridian
• Cintra HR & Payroll Services
• Equiniti
• FMP Global
• PW Payroll Solutions
• Symatrix

For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Different methods of fraud – part 2

Different methods of fraud

This is the second in a three part series on fraud.
The methods we will be covering have been brought to our attention by our clients and not by the national press.

These methods of fraud are real and unfortunately some of our clients have fallen victim to these scams over the last few weeks.

Another fraud that has come to our attention involves large telephone orders of goods using a cloned credit card, the transaction passes bank security but when completed the money has to be repaid to the credit card company.
This has successfully been carried out by fraudsters, including a number of organisation within South Wales.

Impostors purporting to be genuine customers from overseas (we are aware of two instances where they said they were from Australia), and as the cost of living is so much higher overseas they have ordered a large volume of goods over the phone that they plan to ship overseas. Authorisation checks on the credit card payment have been undertaken but the credit card passed all checks as the card has been cloned and the details were correct. Within a couple of weeks of the transaction being completed, the company was then contacted by the credit card company to explain the payment was fraudulent and that the amount needs to be repaid. We have been made aware that insurance companies will not cover you for this type of fraud as the transaction has been completed without the cardholder present.

What action should organisations take to mitigate risk of this fraud occurring?

Recommended actions that organisations can take include:

• Be mindful of any large unexpected orders.
• If a large order is placed, request that they visit your premises to collect the goods and pay upon collection including entering their PIN number
• Ensuring that staff working in relevant areas are fully aware of the risks involved with this type of fraud

 

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Different methods of fraud – part 1

Different methods of fraud.

This is the first in a three part series on fraud.
The methods we will be covering have been brought to our attention by our clients and not by the national press.

These methods of fraud are real and unfortunately some of our clients have fallen victim to these scams over the last few weeks.

Fraudsters are turning to increasingly sophisticated methods in order to deceive and are often quick to adapt their approach to keep up with changes in technology.

 

There has been a rise in a fraud involving changing the bank account details of genuine suppliers in an attempt to divert funds. This successfully being carried out by fraudsters, including a successful attempt on a government organisation.

Impostors purporting to represent genuine suppliers approach target organisations with requests to change bank account details held on file. Baker Tilly have recently noted an emerging variation to this fraud involves fraudsters remotely seizing control of legitimate suppliers’ email accounts from which they send these seemingly genuine requests to change details. With control of the email account, the perpetrators are then able to set up ‘rules’ within the account settings which enable them to intercept and/or delete further incoming emails from the target organisation. This not only enables the fraudster to monitor and respond to the email correspondence, but it also allows the fraud to go undetected by the supplier.

This fraud exemplifies how, with undetected control of the email account, fraudsters were able to gain access to a copy of an invoice which had previously been emailed by the genuine supplier. Once picked up, the invoice was altered by the fraudster with new bank account details in an attempt to legitimise funds being paid into a fraudulent bank account. Fortunately, the organisation identified the fraud before any financial loss occurred; however, this example demonstrates that even with certain controls in place, organisations can still be vulnerable to this type of scam.

Clearly linked to this is the increasing occurrence of cyber-attacks in conducting fraudulent activity, such as in this case, through the ability to compromise an email account. Such attacks often bypass more common ‘manual’ anti-fraud measures and can be difficult to detect. Moreover, the frequency of cyber fraud in general is increasing at an alarming rate. The losses which can be incurred should an organisation fall victim to this type of fraud are significant. Baker Tilly is aware of payments exceeding many of hundreds of thousands of pounds, with a number of instances exceeding £1 million in losses.

What action can you take to mitigate risk of this fraud occurring?

As fraudsters continually develop and apply new methods to circumvent controls, it is essential for organisations to assess the effectiveness of arrangements in place relating to administration procedures for changing both supplier contacts and bank account details.
We recommend some actions that organisations can take include:

• Thorough testing of administration and authorisation procedures in relation to requested changes to supplier details of any kind
• Independently verifying requested changes to supplier contact or bank account details with the original supplier contact prior to any change being made
• Where possible, gaining additional confirmation of the legitimacy of requests from a known source or reliable contact before applying any changes
• Ensure robust IT security controls are in place to help mitigate the risk of a successful cyber-attack, and
• Ensuring that staff working in relevant areas are fully aware of the risks involved with this type of fraud

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

National Minimum Wage rates announced

From 1 October 2015 the adult National Minimum Wage (NWM) rate is to increase by 20 pence and the apprenticeship rate will see the largest ever increase.

The Government has announced that from 1 October 2015:

• the adult rate will increase by 20 pence to £6.70 per hour
• the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
• the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
• the apprentice rate will increase by 57 pence to £3.30 per hour
• the accommodation offset increases from the current £5.08 to £5.35.

This is the largest real-terms increase in the National Minimum Wage since 2007, and more than 1.4 million of Britain’s lowest-paid workers are set to benefit.

The government has rejected the LPC’s recommendation for the apprentice rate. The new apprenticeship rate will be set at £3.30 and represents a rise of 57 pence, the largest ever increase in the National Minimum Wage for apprentices. By implementing a rate higher than the LPC’s recommendation, the government intends that apprenticeships will deliver a wage that is comparable to other choices for work.

Business Secretary Vince Cable is also planning to launch the National Minimum Wage Accelerator – an online tool which will make it easier to compare rates of pay across regions, sectors and occupations. It will take data from the annual survey of hours and earnings and display information about pay so that people are able to compare wages with others in their sector and region.

For further information about how Bevan and Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.

Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals

Tina Davies is manager of Bevan & Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.  

http://www.bevanbuckland.co.uk/services/payroll Tel: 01792 410117

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Audit Limit for Charites rises to £1m

An amendment to the Charities Act 2011 has recently come into force which means that Charities with income below £1m will no longer require a statutory audit.

The changes affect all charity’s with a year-end of 31^st March 2015 and so many will see a reduction in the regulatory burden (and cost!!) this year.

The income threshold was previously £500,000 so the increase is significant and should result in more than 100 charities across South Wales no longer needing an audit.

Charities will still be scrutinised and need an independent examination and some boards may choose to continue to have an audit to keep their funders satisfied.

If you think you might be affected by the changes please call us and we can confirm whether you still need an audit and what other options are available to you.

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960