PAYE is changing from April 2013

Most of you will have received a letter from HMRC advising of a new way to report PAYE information from April 2013, and started discussions with your accountant on how to prepare for the change.

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So what’s changing?

From April 2013, every time an employee salary payment is made, information will have to be sent to HMRC, at the time the payment is made (or before), using software to send electronically.

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And how will it affect my small businesses

While many very small business currently only make an annual return to HMRC, monthly returns will be required. Most impacted will be businesses whose directors/employees are paid below the lower National Insurance threshold.

In order to submit this monthly information, small businesses will need to acquire commercial payroll software or use a payroll service provider, such as an accountant or a payroll bureau, who will do it for you. A further option for businesses with 9 or fewer employees is to use HMRC’s free Basic PAYE tools.

To help you understand how your business will be affected, just follow the charts below:

Basic RGB[/threecol_two_last]

Which journey applies to your business can also be identified from the table below:

RTI-PAYE-chart
*These are 2013/14 thresholds

The 3 Journeys

The PAYE obligations of each of the above groups are as follows:

PAYE-RTI_chart

Support from Goddard Solutions

[threecol_two]We operate payroll software which is fully compliant with RTI and offer our customers payroll processing for a fixed annual fee of £99, plus a £5 monthly (or quarterly for irregularly paid employees) cost for each employee for each electronic submission made. This cost includes submission of the employer’s annual return, and seamless update of OpenBooks for those customers using this system.

We can also give advice relating to registering as an employer or any other questions around PAYE. Further information on changes under RTI can be found on HMRC’s site:
www.hmrc.gov.uk/payerti/index.htm[/threecol_two]

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Cloud-based book-keeping

We can provide you with a market leading Cloud-based book-keeping system that covers all your on-going book-keeping needs.
[fourcol_one]£22 per month
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OpenBooks, the simple all in one book-keeping and financial management system on the Cloud. Visit Online book-keeping for more details.

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Accounts, tax returns and other annual requirements

Every business has a legal obligation to submit an annual tax return. Some may also need to prepare accounts for Companies House and annual employer’s submissions.

[fourcol_one]From £500

[/fourcol_one][fourcol_three_last][unordered_list style=”tick”]We can assist with:

  • Year-end Tax and Companies House Returns
  • Production, and submission to HMRC, of your Business’s Tax return and Employer’s Return, together with preparation and submission of the annual Companies House Return (for Companies and Limited Liability Partnerships)
  • We keep close to your business throughout the year to identify areas where tax efficiency can be improved and inform you of changes that affect you. In addition, during the preparation of the year end returns, we will ensure that tax efficiency is maximised
  • Fee includes a year-end meeting, either face to face or using Skype or WebEx.[/unordered_list][/fourcol_three_last]

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Tax and other advice

A business starting up and an established company have very different requirements. We provide flexible, professional support as and when you need it.

[fourcol_one]Hourly rate of £75[/fourcol_one][fourcol_three_last]

Initial and on-going advice[unordered_list style=”tick”]

  • As a new start up business, our average time on Initial Advice can range from 2 hours to a full day, depending on both your specific needs, and how much of the set up responsibility you wish to take on yourself
  • Reduced hourly rate of £50 for any book-keeping assistance
  • On-going support can be designed into a monthly package (starting from half an hour a month) or charged on an ad hoc basis at standard hourly rate
  • All fees are agreed in advance, so there are no surprises.[/unordered_list][/fourcol_three_last]

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