Introduced in April 2013, Real Time Information (RTI) has been described as one of the most fundamental changes to payroll reporting requirements in the past five decades.
RTI requires all employers to start providing employee PAYE, National Insurance and Student Loan information to HMRC at point of payment every month and not just at year end as currently.
The Government recently announced that small employers will have an additional six months to prepare for RTI.
Businesses with 50 employees or less will not have to report salary and other payment made to their employees in ‘real time’ until the end of the tax year.
Until April 2014, these businesses will continue to be able to provide this information to HMRC on a monthly basis through the new scheme.
At Glazers Chartered Accountants, London, we understand that many small businesses may not be aware about the changes in reporting PAYE and how it will affect their businesses, despite the Government extending the deadline.
The introduction of RTI will mean employers will need to take more time to submit employee information to HMRC.
If you're an employer, each time you pay an employee you will need to submit deductions, such as Income Tax and National Insurance contributions (NICs) and starter and leaver dates if applicable.
You will need to include the details of all employees you pay, including those who earn below the NICs Lower Earnings Limit (LEL), while an employer will no longer submit an end of year return (forms P35 and P14) and the starter and leaver process is simplified.
As an employer, you will continue to give your employee a form P45 when they leave but you no longer send forms P45 or P46 to HMRC - instead you must submit all starter and leaver information as part of the Full Payment Submission (FPS).
There will also be an automatic penalty regime for those employers who fail to comply.
As a well established and experienced firm of accountants in London, Glazers can assist in preparing a small business to meet the demands of RTI.
However for many small businesses it may be preferential to outsource their payroll functions to an experienced accountant in London, such as Glazers.
Payroll bureaus have the flexibility to deal with changes in payroll regulations, offering cost-conscious, affordable results, with services customised to meet clients’ specific needs.
At Glazers Chartered Accountants, London, we have a dedicated team of specialists in our payroll department geared up to providing a timely, accurate and flexible service, tailored to suit your needs.
Glazers Chartered Accounting in London can relieve you of the administrative burden of Real Time Information (RTI), allowing you to concentrate on your own business, while reducing overheads.
Alternatively, Glazers Chartered Accountants in London can also provide RTI training if you prefer to do it yourself, and a helpline in case you run into any difficulty.
To find out how we can help you prepare for RTI, contact Glazers Chartered Accountants, London, on:
Telephone: 020 8458 7427
Email: quality@glazers.co.uk
Web: www.glazers.co.uk
Summary:
Glazers Chartered Accountants, London is an independent firm of accountants, auditors, business consultants and financial and tax advisers, experienced in RTI, payroll, PAYE and National Insurance Contributions.
This accountant in London specialises in working with SME and owner-managed businesses and with personal clients. At this accountant, London, you’ll get expert advice and responsive, efficient, client-focused support that add real value to businesses and to personal finances, through services including payroll and PAYE, as well as personal tax planning and compliance, audit and accountancy, bookkeeping, business consultancy, financial services, and VAT consultancy.
"For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 536 )Although the Spending Review announced yesterday (June 26) by Chancellor George Osborne provoked anger from public sector workers and other critics, business leaders and groups generally welcomed the plans but said they would have liked to have seen further cuts to public spending and a greater emphasis on infrastructure investment.
Amongst measures announced in the Review, which will cut £11.5bn from Whitehall departments, the Chancellor revealed he will apply a ‘temperature test’ to ex-pat pensioners, depriving many of their winter fuel allowance, and has reduced the local government department budget by 60 per cent.
However, Mr Osborne also announced £100bn of spending on the UK’s energy and transport infrastructure between 2015 and 2020, seeing it as the most effective engine for economic growth, which was welcomed by business leaders.
Director General of the CBI, John Cridland said that the Chancellor has “carefully walked a tightrope of protecting growth, while making sizeable savings to pay down the debt.”
Details of the infrastructure boost will be announced later today by Chief Secretary to the Treasury Danny Alexander, but the focus is expected to be on energy, although there will almost certainly be plans to build schools and affordable housing and more will be spent on scientific research.
Meanwhile, although the budget for HM Revenue & Customs (HMRC) has been cut by 5 per cent, the department has been instructed to raise an extra £1bn in revenue by targeting tax avoidance and evasion, fraud and debt.
HMRC’s target for extra tax revenue has increased from £23.5bn in 2014-15 to £24.5bn in 2015-16. According to Treasury estimates, the department should be able to deliver £130m of efficiency savings by 2015-16 through "improved productivity and further digital transformation, reducing inefficient manual processing and dealing with error".
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 591 )Several newspapers and magazines have picked up on the fact that the European Commission has delayed, if not entirely shelved, the implementation of its proposed financial transaction tax (FTT) until the middle of 2014.
Rather than make an announcement, the commission’s admission was merely included in an update to its web pages last week and the notice was slightly ambiguous, leaving commentators to wonder whether this is just a delay or a quiet axing of the controversial measure.
The wording on the site says: ‘Once agreed upon at European level, participating member states will have to transpose the directive into national legislation. If agreement is found before the end of 2013, and there is a speedy transposition into national law by the participating member states, this common framework for an FTT could still enter into force towards the middle of 2014.’
However, such has been the reaction to the proposed tax, which has been dubbed a ‘Robin Hood tax’, from the member states in recent months that it is unlikely for anything to be ‘speedy’ and EC tax commissioner Algirdas Semeta has had to deny reports that the tax would be scaled back for the original start date of January 2014.
There had been rumblings that the member states were unhappy with some of the proposals as far back as the end of May, when sources suggested that the tax on trading bonds and shares would drop from 01 per cent to 0.01 per cent and that only shares would be affected from the proposed start date.
Mr Semeta said that it is “premature” at the moment to say what the final outcome will be, as talks are still taking place, albeit in “a constructive mood”.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 586 )A recent survey has found that the majority of small and medium-sized enterprises (SMEs) have no key worker protection in place, despite the death of a business owner being cited as the most disruptive threat a business can face.
In the survey of 500 businesses, it was found that the death of a business owner came in as the top most disruptive scenario, at 43 per cent, as opposed to 23 per cent who specified fire damage and 14 per cent who cited critical illness.
In fact, the consequence of the death of the owners would be so serious that 12 per cent of those surveyed predicted that their business would cease trading immediately as a result of the death or critical illness of a key worker or business owner.
While a further 42 per cent thought that their business would cease trading in this situation but over a longer period of time. Of this cohort, a quarter felt that the business would cease trading within the first year of the deal, 6 per cent within the second years and 11 per cent after two years.
Given the results of the survey, it is surprising that small business owners either do not have key worker insurance in place or a continuance strategy in place that is communicated to the workforce.
Even firms with a number of workers need to think about planning for an unfortunate eventuality, particularly when chronic illness can wreak almost as much havoc as a sudden death, as grief can be equally disruptive, so professional help should be sought for guidance on what to do should the worst happen.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 591 )The latest survey on business optimism amongst small and medium-sized enterprises (SMEs) shows that over 80 per cent are currently upbeat about the general state of their business, with the majority expecting growth over the coming year.
This is a different picture from this time last year, when only 35 per cent of SMEs were optimistic about growth in the following six months, that figure has risen to 63 per cent.
In addition, 38 per cent believe they will make more profit this year than they did last year and a further 38 per cent believe profit levels will be similar, while the number who would bet their house on their company making a profit this year has risen by around a third, from 13 per cent to 17 per cent.
There has been a rise of around 25 per cent of those who think their personal earnings from the business will go up year on year, and perhaps swayed by recent good news for the economy, almost 60 per cent of UK SMEs believe 2014 will be an even better year than 2013.
The index looked in more detail at four broad sectors within the SME marketplace and, while the picture was again largely optimistic compared with last year, there are some marked differences between sectors.
The retail and distribution sector showed the highest levels and biggest rise in optimism about growth year on year. However, while building trades and industrial were still more optimistic year on year, they fell behind the other sectors in general levels of optimism around growth.
On a regional basis, SMEs in Scotland were the most optimistic at 88 per cent, which was 10 per cent above the average, while Wales was the least optimistic, although SMEs there were more likely to be planning on taking on new staff next year.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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