F.         PAYROLL PREPARATION, P.A.Y.E. AND N.I.

Payroll and year end returns

In order for us to prepare your payroll and year end returns we will require the following information from you:

(a)        Personal details of all employees (i.e. name, NI number, home address, and the data required by HMRC to file payroll returns online which is known as Real Time Information (RTI)).

(b)        All P45s, or equivalent, received by you.

(c)        If any casual labour is taken on, you are required to operate P46, or equivalent, procedures.

Completed forms should be passed to us for processing.

(d)        Notification within two weeks of any employee who is ill for four or more calendar days, including weekends, bank holidays etc.  This will enable us to operate statutory sick pay for you.

(e)        Notification of any employee who adopts, becomes pregnant or whose partner adopts or becomes pregnant.  This will enable us to operate statutory adoption, maternity and paternity pay.

(f)         Details of any money or benefits made available to employees by you or by a third party through you.

(g)        Hours worked, rates of pay, bonuses, the amount of any pension deductions (Automatic Enrolment) etc.

(h)        Notification of employees engaged by you or leaving your employment.

(i)         Any notice of coding received by you.

The end of period payroll returns must be received by HM Revenue & Customs on or before pay day otherwise significant penalties may be levied.  There may also be interest payable if income tax and National Insurance contributions payments, due  each month or quarter are late or less than indicated by the return.  Only the information provided for the payroll will be reported to HMRC.

We will assist in the preparation and submission of PAYE returns as required by the authorities concerned.  However, it should be understood that our appointment as your agent does not absolve the company or its directors from their statutory responsibilities.  We would draw your attention to the strict rules and time limits for the submission of such returns and the substantial penalties which may arise if these are not observed.  It is therefore essential that we receive full information from you promptly to enable us to ensure that the returns are made on a timely basis.  Completed returns will be submitted in accordance with HMRC requirements unless you undertake to submit these yourself.

Auto-Enrolment

Recurring compliance work

1. As part of the preparation of your UK payroll, we will:

1. calculate the deductions to be made from each worker’s pay;
2. calculate the contribution you as an employer are obliged to make to the scheme; and
3. process through the payroll any refunds from the scheme.

2. We will include the pension payments on the following documents:

1. the payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals;
2. the payslips for each employee (unless payslips are not required);
3. a report showing your total pension contributions (employees and employers) and due date for payment.

We can provide advice to you regarding your choice of a pension scheme but we are not authorised to provide specific advice to your employees. You are responsible for choosing a pension scheme that meets the automatic enrolment qualifying criteria and we recommend that you take appropriate independent advice.

We can assist you by:

• providing factual information about pension schemes;
• helping you to compare schemes;
• referring you to a specialist adviser; and
• referring you to guidance issued by The Pensions Regulator on pension scheme selection.

We will help you to establish which category each worker falls into, whether entitled worker, eligible jobholder or non-eligible jobholder.

3. We will prepare and send to you a notice to send to each non-eligible jobholder that sets out certain information about opting in to an automatic enrolment scheme and what this means for them. If the non-eligible jobholder chooses to opt in, you will enrol them onto the scheme on receipt of an opt-in notice. We will assist you in this process. We will send information to the pension scheme about those non-eligible jobholders who choose to opt in.

4. We will prepare and send to you a notice to send to each entitled worker, giving them information about joining a pension scheme and what it means for them. This includes new starters and those becoming eligible to be enrolled by age or earnings. They do not need to be automatically enrolled but have the right to opt in. You will arrange membership to a scheme for those entitled workers who choose to join and complete a joining notice. This can be a different scheme to the one used for auto-enrolment. We will assist you in this process.

5. We will prepare a notice for you to give to the eligible jobholder telling them that they have been enrolled, setting out what that means for them and also detailing their right to opt out (and to opt back in again). You must re-enrol eligible jobholders every three years. We recommend that you establish a process for this review.

We will, on receipt of the scheme information from you and the pension provider, assist you when you make your declaration of compliance to The Pensions Regulator.

6. Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees.  Where appropriate we will aim to discuss and agree additional fees, but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries.

P9D/P11D benefits for directors/officers and employees

You have asked us to prepare forms P9D/P11D for your approval.  To ensure these forms are correctly prepared we will require details of all benefits, perks or reimbursed expenses received by the directors, officers & employees.

There are penalties for the late submission of forms P9D/P11D.  In order to avoid these, you must ensure that we receive complete and accurate details of all benefits and expenses for the tax year (NB: not accounts year) within 14 days of the end of the tax year.

Subcontractors

We have agreed to operate the Construction Industry Scheme for the subcontractors you engage.  In order for us to do this, we will require the following information from you on a timely basis:

(a)        written confirmation that you have checked or ‘verified’ each new subcontractor with HM Revenue & Customs;  and

(b)        written confirmation stating whether HM Revenue & Customs has advised that the subcontractor should be paid net or gross.

It is your sole responsibility to establish the employment status of each and every one of your subcontractors. In respect of the employment status of subcontractors we cannot advise therefore we accept no liability in the event that HM Revenue & Customs challenges the employment status of one or more of your subcontractors.

Under the new rules, CIS registration will be lost if returns are made late or tax is paid late. HM Revenue & Customs no longer has discretion regarding whether or not to cancel registration.  We cannot be held responsible or liable for financial loss or consequential financial loss if your CIS registration is cancelled for late submission where we have not received the necessary information on a timely basis or for any late payment occurring as a result.

We will be pleased to advise on any other taxation matters referred to us and would strongly encourage you to approach us before entering into any complex or unusual transactions in order that we can assess their tax implications.