Welch & Co can securely manage your entire payroll. Our team at Welch Payroll & Company secretarial Ltd have a dedicated payroll team that will work beside you.

No matter how small or large your workforce, managing duties such as

  • Paying your staff on time,
  • Calculating and processing statutory deductions,
  • Maintaining accurate and secure records,
  • Calculation and recording of statutory sick pay, statutory maternity pay, statutory
      paternity pay etc.
  • Construction Industry Scheme (CIS) returns preparation and online filling

Managing all of these duties whilst complying with the tax and employment laws can be very stressful and time consuming. Also with the addition of reporting in real time to HMRC and complying Auto Enrolment pensions are other complex procedures and legislation that needs to be complied with.

Our Payroll department are committed to get this exactly right for you and your employees. We can securely manage your entire payroll and with the use of the latest software we are fully automated to suit your business needs.

 

RTI updates issued?

HM Revenue & Customs (HMRC) have decided on a full remake of the PAYE system. Introduced in April 2013 and became compulsory for all employers in October 2013.

The new RTI Model (Real time information) requirements are wide ranging and time consuming on employers.

Under RTI means that employers have to send HMRC data about tax, National insurance contributions (NICs) and other deductions using payroll software on or before each earnings or pension payment is made, rather than at the end of the tax year.

The information sent will advise HMRC how much you should pay. Their view is that these changes need to be made to improve the PAYE in order to:

1)      Increase the number of Individual who are subject to correct deductions and help avoid a building up of debt.

2)      To reduce fraud and error in the credits and benefits system.

 

There are two main returns which an employer needs to make which are detailed below:

 

Full Payment Submission

The Full Payment Submission (FPS) must be sent to HMRC on or before the date employees are paid. This submission details pay and deductions made from each employee. The FPS must reach HMRC on or before the date of payment to the employee.

 

Employer Payment Summary

Employers may also have to make a further return to HMRC each month (EPS) to cover the following situations:

  • where no employees were paid in the tax month
  • where the employer has received advance funding to cover statutory
      payments
  • where statutory payments are recoverable (such as Sick/Maternity/Paternity
      and Adoption pay)
  • Where CIS deductions are suffered which could be offset (companies only).
      Contractor returns will continue unchanged and will still need to be completed and submitted monthly. Late filling penalties for missing the due date will also remain unchanged.

HMRC will offset the amounts recoverable against the amount due from the FPS to calculate what should be payable. The EPS needs to be with HMRC by the 19th of the month to be offset against the payment due for the previous tax month.

 

Year-end procedures

At the end of the tax year a final FPS or EPS return must be made to advise HMRC that all payments and deductions have been reported to HMRC. This final return detail whether for example, forms P11D reporting employment benefits or expenses are due.

HMRC have made available some guidance under the RTI. For more information visit www.hmrc.gov.uk/payerti

 

Penalties

HMRC are introducing automatic penalties for RTI to encourage compliance with the information and payment obligations.

Late filing penalties will apply to each PAYE scheme, with the size of the penalty based on the number of employees in the scheme. Monthly penalties could be between £100 and £400 which will apply to micro, small, medium and large employers.

Another important change is that for tax years 2014/15 onwards, HMRC will charge daily interest on all unpaid amounts from the due and payable date to the date of payment, and will raise the charge when payment in full has been made.

 

The payroll department at Welch & Co is of the highest standard and our fees are competitive. If you would like a quote or any further information then Welch & Co can help.

Call us on 01823 321954