Accountants & Employers PLEASE!!!
I really believe that this RTI caper should be re-addressed with those who operate payroll systems, who can confirm, the best way forward for both those operating it and HMRC receiving the information they need for those people in receipt of benefits that they need to keep a tab on the hours worked and income received.
The LOGICAL answer to this nightmare, as far as I see it, is if all accountants and employers ask HMRC to have a re-think, as a more workable system would be ONE FPS PER MONTH for everyone.
It is unreasonable to expect everyone to submit these figures weekly, people go on holiday and people become sick and are off work. Bigger companies will cope but the majority of smaller companies and practices are finding this an absolute nightmare.
Does anyone know how we can achieve something like this, something that would be much more workable for all?
Perhaps They can Also Look At Monthly Filing Only
Perhaps, now that they will have extra time to reflect and prepare for penalties. They will consider what most of us who are actually processing this work are saying. Change the system so that even for weekly payrolls, a once a month RTI report will do.
The submitting a report every time an employee is paid rather than once a month, is so hard to monitor. Even if clients are told NOT to pay outside of payroll day, they don't always listen.
A Penalty regime being based on not submitting an FPS when 1 employee is paid out of sinc, is just a license to print money in my opinion.
If HMRC introduced once a month reporting only,I feel the majority of the moaning would stop. The system would be easier to process for all, and speaking for the individuals who are processing their own payroll - more people would be able to get it right.
As a stand alone accountant, it has become a nightmare when wanting to take a week or two's break from work. I never take a holiday from work towards the end of a month to ensure these and other HMRC deadlines are met. But this has really caused a problem, and I can only foresee the small companies receiving penalty after penalty because of the current required frequency, once penalties come into force.
Why won't HMRC listen to the people operating this system.
Many thanks Steve, Phew! Yes the sons are adults and both fully work in the business too.
Dividend Waiver Query
I would like to ask a couple of things about this, if anyone can help.
If I have a business where there are 3 directors with 1 share each, a father and two sons. The father has retired from the business but still holds a share. If there is sufficient profit to declare £45,000 worth of Dividends at £15,000 per share. The Father does not want his dividends, thus signs a waiver so that both sons receive £22,500 dividends each.
No-one on their current income will pay any higher tax, even if the father received his dividend. If nothing to gain in taxes by HMRC, would this new tribunal ruling, impact on my client, if they wish to continue to waiver?
Thanks in advance
IMPORTANT NOTE ON Directors on Low paid salaries
I recently undertook a course on RTI, and one of the points brought up with directors. Is that if they are on a payroll and only receive their income in month 12. We need to be aware that if their directors loan accouont is overdrawn and they say pay £200 for a personal item. This is deemed that they have taken £200 of their salary, and and RTI report needs to go up as such. It does not affect directors who DL accounts are not overdrawn though. Has anyone else heard of this?
As the client is liable to a penalty if all goes wrong. I would not take on any responsibility for errors personally, and will always email the client a PDF of the payroll to check for accuracy and under RTI, a PDF of the employee list report showing their name address etc and this report on my software package shows the boxes for average hours worked ticked.
In outlook I will have a reply button for them to email me back with the word Agreed.
If all goes belly up I will have evidence that the client agreed to all that was being submitted. My only downfall would be if I did not submit the report on time after receiving their acknowledgement in time. It seems like a lot of effort, but I am going to charge for this additional work.
I have been speaking to clients about this, and have also done a newsletter explaining all about what will need notifying to me (especially if anyone is paid out of the normal pay day period). And even they can see how complex it will become. They won't want to do this themselves and would prefer to rely on us. But I certainly won't be taking any risks on their part. if they havent responded in time, it won't go and my additional letter of engagement I am currently preparing, will say as much, and that I won't be responsible for any penalities. They are also going to have to provide the information 7 days (5 working days) before pay day to avoid missing the submission deadline.
My clients have accepted the higher fees as a necessary evil, as I can't do additional work for free.
Hope this is of help.
All the time, and doesn't it grate on you when they get it wrong!
Hi Carolyn (without the 'e')
It prints a whole array of pay slips, including an Iris one, self seal (printer or hand seal) one and you can print them black on white or print them in colour, or buy printed pay slips to fit.
Hope that's of help.
Moneysoft Payroll software is wonderful
I have used a product called Moneysoft payroll since 2004, and you can purchase it for £34+Vat for up to 20 employees and it goes up to £110+Vat for 20-99 employees, and £165+Vat for 100-250 employees, (the licence lasts 12 months on this with free technical support).
It is HMRC compliant, and you can print its P60's directly from the system this year, without having to use HMRC own forms.
It covers CIS schemes all in one, and you can make changes to previous weeks if necessary, and the information just cascades down to the current week, so there is no need (as with SAGE payroll), to re-do previous weeks back ups. You can print cash breakdowns for the bank and cash make-up for the employees.
The purchase includes a telephone helpline, which is free, whenever I have phoned, they have answered quite quickly and been very helpful to resolve my query.
The software can be paid for and downloaded from their website www.moneysoft.co.uk