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

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

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

The scheme to recover SSP is being abolished

SSP Recovery for Small Employers that pay over 13% of their total NI for the Pay Period will stop in March 2014

The scheme to recover SSP is being abolished from 6 April 2014. This new legislation has not been fully publicised as it seems to have slipped in under the radar with RTI and Auto enrolment taking the centre stage – although further investigation shows this was put forward back in January 2013.

Commenting on the changes Bevan & Buckland payroll manager Tina Davies said “This could prove counter-productive and damage the government’s efforts to support small businesses and encourage entrepreneurship?

Small employers need to be aware, as they will have to pay out up to 28 weeks of SSP per long-term sick employee.  This is a major change and hopefully the press will pick up on it eventually.   The New £2,000 Employer NI allowance will not fully compensate every business, because if they only pay part-timers there is no Employer’s NI to save. The bigger employers will gain the most from it as they probably couldn’t recover any SSP anyway.”

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.

To find out what other services are offered by Bevan and Buckland visit www.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

Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

Auto Enrolment hits the two million mark

Automatic enrolment hits the two million mark

17 December 2013

More than two million workers have begun saving into a workplace pensions scheme as a result of automatic enrolment, according to figures released by The Pensions Regulator.  “But this is just a drop in the ocean. Millions more will come under the legislation in the next few years” writes Tina Davies, Payroll Manager at Bevan & Buckland.

Automatic enrolment began in October 2012 and is rolling out from the largest to the smallest employers across the UK. All employers, including charities and the public sector, will eventually need to assess their workforce and automatically enrol eligible workers into a pension scheme.

This month’s automatic enrolment registration report shows that more than 3,500 employers have now joined the workplace pension’s revolution and submitted an online declaration of compliance by completing registration with The Pensions Regulator.

The new year will see a leap in the number of firms affected, with tens of thousands of medium employers introducing automatic enrolment. The Pensions Regulator is urging all employers to make sure they know when they must introduce the changes, or ‘stage’.
Charles Counsell, executive director of automatic enrolment at The Pensions Regulator said: “If they have not done it already I would hope the first thing every employer does when they get back to work after the Christmas break is to check their staging date and prepare for automatic enrolment. The clock is ticking and if employers don’t plan ahead they could face unnecessary challenges and costs in the New Year.

“It’s really important to arrange your pension provision in plenty of time. We urge employers to have an agreement with a provider in place six months before staging. Don’t just assume the first provider you contact will be able to help you.”
If you have any concerns or issues regarding your staging date please do not hesitate to contact Tina Davies the payroll manager or anyone of the payroll team who will be able to confirm your staging date.

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.

To find out what other services are offered by Bevan and Buckland visit www.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

Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

Calculating holiday pay entitlement

Calculating holiday pay entitlement

Currently all our clients pay employees holiday pay calculated on the contracted hours it looks like this might change as in a recent case a Tribunal was asked whether employers are required to base their calculation of holiday pay on employees’ actual remuneration – including overtime, or only their basic salary.

The Employment Tribunal confirmed that holiday pay entitlement must be based on actual remuneration for contractually required tasks, noting that overtime and shift premia must be included in the calculation.

This case will be of particular interest to employers in the retail sector where overtime, shift premium and other such payments are commonplace.

Pinsent Masons takes a closer look at the case in their HR Briefing.

At a Glance

In the recent case of Neal v Freightliner Limited, an Employment Tribunal (ET) was asked to consider whether employers are required to base their calculation of holiday pay on employees’ actual remuneration (including overtime pay) or their basic salary alone. The ET confirmed that holiday pay entitlement must be based on actual remuneration for contractually required tasks, noting that overtime and shift premia must be included in the calculation.

Background

This judgment follows on from the recent Supreme Court decision in British Airways plc v Williams and Others in which it was held that employees should be paid their “normal remuneration” during their four weeks’ statutory annual leave. The principle is that employees should be put in a financial position comparable with periods of work. In the BA case it was held that the pilots’ holiday pay should be calculated by assessing average payments made over a representative reference period, including flying pay supplements.

In the wake of this decision there had been some uncertainty as to the wider application of this principle, as the BA case was dealt with under the Civil Aviation (Working Time) Regulations. However, the decision in Neal v Freightliner Limited leaves little doubt that the scope of this principle has been extended beyond the airline industry and we are seeing a considerable number of claims for holiday pay to include payments for overtime, shift premia and other allowances.

The Employment Tribunals have also released statistics which show that claims under the Working Time Regulations (WTR) doubled in the first quarter of 2013 and accounted for a third of all claims submitted.

http://www.cipp.org.uk/

Bevan and Buckland, one of the largest accountancy firms in Wales with offices in Swansea, Cardiff, Haverfordwest, Pembroke, Carmarthen and St David’s, could help. It is easy to separate payroll from a company’s other accounting practices, meaning that the work can be outsourced to a specialist agency. Bevan and Buckland, which has a track record spanning more than a century, has a dedicated BACS accredited payroll team, and can offer companies a fully-managed and confidential payroll service. One major benefit is that they will then take on the responsibility of keeping up-to-date with all the legislation.

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.

To find out what other services are offered by Bevan and Buckland visit www.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

Big payroll changes on the way

Swansea Accountants offer businesses help with big payroll changes

From this April employers and pension providers will have to submit information to HM Revenue and Customs in a new way, one that is likely to increase the workload of those responsible for payroll management.

Historically a single return has been made to HMRC annually, showing what each employee has been paid in the financial year. From April, in a bid to improve the accuracy of PAYE donations and help support the introduction of Universal Credit when it is introduced by the Department for Work and Pensions (DWP) in October, a new system of real time reporting will come into effect and as part of the standard payroll practice all payments and deductions to employees or pension recipients must be provided to HMRC.

The HMRC will work with employers, pension providers and payroll providers to make the new system work during its pilot year, but it is essential for anyone falling into these categories to ensure they read the HMRC’s guidelines to ensure compliance. This information is available at www.hmrc.gov.uk/rti/payerealtime.htm.

Bevan and Buckland, one of the largest accountancy firms in Wales with offices in Swansea, Cardiff, Haverfordwest, Pembroke, Carmarthen and St David’s, could help. It is easy to separate payroll from a company’s other accounting practices, meaning that the work can be outsourced to a specialist agency. Bevan and Buckland, which has a track record spanning more than a century, has a dedicated BACS accredited payroll team, and can offer companies a fully-managed and confidential payroll service. One major benefit is that they will then take on the responsibility of keeping up-to-date with all the legislation.

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.

To find out what other services are offered by Bevan and Buckland visit www.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