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RTI - one man band LTD

Hi there more experienced members

what would you quote now for payroll under RTI for one man band ltd where we used to do annual tasks only (paid just at the threshold 624/month, no NI or tax)?

previously i would have called HMRC to say there is no NI or tax to pay for the year (or send a message every quarter via HMRC's website) and then do year end in May

regards

Lucien

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£25 - £30 per month

As you still need to do 12 submissions and run a monthly payroll.

This is a time cost basis though, you should probably check with Bob Harper incase you can charge more and help the client more by using value billing.

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05th Dec 2012 09:28

not sure many would be happy with that - at the money they can buy moneysoft and do it themselves if they can be bothered

i will charge differently client by client depending how likely they are to say no or yes :)

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05th Dec 2012 10:42

Naughty, naughty!!

JCresswellTax wrote:

This is a time cost basis though, you should probably check with Bob Harper in case you can charge more and help the client more by using value billing.

I would suggest he uses Moneysoft himself if capable. If not, I would charge about £15 per month.

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By 1796971
05th Dec 2012 10:57

don't think monthly submisions will be necesssary

went on an IRIS payroll course the other week, and after putting the " directors £ 624 pm payroll" question to him, he said solutions are:-

1. zero salary voted in months 1-11, and £ 7488 in month 12. If set up as 'irregular' employee, no Nil submissions required for first eleven months in year.

I suggested overdrawn loan account in excess of £ 5000 would arise if they actually took the £ 624 per month. So perhaps to get around this, vote £ 3744 in month 6, and then £ 3744 in month 12.

 

2. vote £ 7488 in month 1. As director, no problem with the NIC, but he seemed to think the software could do an annual payment in month one, which would show no tax as well.

 

So I'm working on the assumption that there will be just one submission for hte year, not 12. If that's the case, then can't see much increase in time/fees.

I guess still going to have to do quarterly online £Nil tax submissions though - so no change there.

 

 

 

 

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If monthly returns are required ...

then I have agreed with a bookkeeper associate that she will do the monthly task for £10 per month for all of my affected clients + £25 at year end. I am concerned with annual payments for some of my clients who run loan accounts and reserves a bit close to the wire.

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By 1796971
05th Dec 2012 11:09

PS

this IRIS guy also seemed pretty adamant that you can do periods in advance, so if you wanted, you could do 12 x £ 624 submissions at the beginning of the year

I guess doing any sort of submission in advance could lead to errors (eg ceasing trade/taking maternity leave), but I can live with this sort of thing happening now and again (but probably won't be able to cope with 200 monthly submissions!)

 

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That is certainly contrary to what I have read ...

but good news if it is the case.

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05th Dec 2012 11:25

thanks all

i will research Moneysoft to see how they have adapted to RTI in this case

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05th Dec 2012 11:50

looks like Moneysoft might make this easier on agents:

 

What if I'm an agent / accountant - will there be an extra features to help me manage RTI?

We are working on an 'Agent RTI schedule' facility designed to help manage the RTI submission workload for those processing payroll for a number of clients. This is currently under development and will be available to all agents when RTI becomes mandatory from April 2013.

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05th Dec 2012 12:20

I Just Rang Sage

Here's what they said on £624 directors.

We will still be able to run payrolls quarterly in advance for these one man band types - not necessary to do monthly submissions.

They are about to deluge me with information sheets on the subject.

Absolutely vital I at least am clear, as I notify payroll price rises in Jan every year.

Sage person also advised to get into the last pilot scheme - deadline is Dec 17th and has to be thru Sage (or presumably your own software supplier) to start RTI from March 2013. That way year end not nearly so complicated, although EAS would be required before March payroll.

Sage think ghastly nightmare when new people try submitting EAS in April, as HMRC won't send report saying whether successful for up to 3 weeks and this will then affect the April monthly payroll submission.

Although I am rude for good reasons about Sage usually, their software support staff have been absolutely fantastic up to now and I believe everything they've told me on this.

They urged me to consider popping my people into the pilot scheme to save April aggravation. Will have to think about this.

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EAS isn't necessary for most employers.

Moonbeam wrote:

Sage think ghastly nightmare when new people try submitting EAS in April, as HMRC won't send report saying whether successful for up to 3 weeks and this will then affect the April monthly payroll submission.

Although I am rude for good reasons about Sage usually, their software support staff have been absolutely fantastic up to now and I believe everything they've told me on this.

I am not sure about their motivation for telling you that, but above 99% of employers don't even have to file an EAS. If you're a "small employer" in HMRC's eyes (fewer than 250 employees) then you simply submit your first FPS and that's that.

I suspect that a bigger motivation for Sage may be to spread out the load of RTI changeovers on their own support department.

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05th Dec 2012 17:46

Thanks, Tom

I feel very manipulated by Sage, but I should have known better.

There seems a complete lack of total information we can rely on in one place, and HMRC are largely to blame for this.

I am sure it will be a nightmare in April.

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Agreed

Moonbeam wrote:

I am sure it will be a nightmare in April.

No dispute there. Imagine how we feel. Multiply the problems any individual payroll processor will experience by 10,000 in our case (or 500,000 in Sage's!)

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05th Dec 2012 18:22

I'm ignoring RTI !

Moonbeam wrote:

I feel very manipulated by Sage, but I should have known better.

There seems a complete lack of total information we can rely on in one place, and HMRC are largely to blame for this.

I am sure it will be a nightmare in April.

 

Yes, I agree - I'm deliberately ignoring RTI until after the end of Jan as a) I have quite enough on my plate until then and b) things may be clearer by then.

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By Flash Gordon
05th Dec 2012 18:56

Ignoring RTI too

I'm with Moneysoft & I trust them to have the software performing the necessary handstands, backflips and other Olympic-gold-worthy moves that I'll be needing come April.

Fee-wise I've quoted c£250 for a director's payroll to include all the monthly and annual gubbins. That includes setting it up on Moneysoft and getting a dispensation in place. I might be a bit under-priced for the first year but making more ongoing. And the client is happy to get shot of the admin and hassle so I think I'm adding value too :)

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