Payroll Services, CIS Scheme, Payroll Companies, Processing, Essex

ACAS RIOT ADVICE FOR EMPLOYERS & EMPLOYEES AFFECTED

2011-08-11T09:27:00.000-07:00

Acas have published useful advice for employers and employees affected by the rioting in London and other major cities.

Employers, employees and Payroll Services who may be affected by the riots are advised by Acas to:

•    Keep in touch with each other - try and get in touch with your employer to let them know if you can't get to work. Contact your employees to discuss work arrangements, if your business has been damaged,
•    Be flexible about working hours and location, perhaps using smart phones and laptops to help you keep working where possible
•    Be fair - as an employer, try and take into account the circumstances surrounding absence or timekeeping issues before deciding on the action you might take - in terms of leave and pay.

Remember these key points

If employees are unable to get to work because of travel disruption, employees are not automatically entitled to pay.

No legal right is there for employee’s to be paid by an employer for delays in travel - however your business may have other arrangements within your employment contracts.

Employers are able to decide when statutory holiday entitlement must be taken by employees, but a minimum notice period must be provided before taking statutory leave. This notice period is twice the length of the period of leave the employer would like them to take. So, an employer must give you two day's notice if they want you to take one day's leave.

Unpaid leave

Employers might suggest that employees take a day of unpaid leave if unable to travel to work, but cannot force staff to agree to this unless included in their employment contract, or an employer could require employees to take a day's contractual holiday entitlement if employees cannot travel to work due to the disruption.

Time off to care for children/dependents

Employees that cannot get to work because of school is closure or their normal child care arrangements are disrupted, may have the right to time off for dependents.

Closuring the workplace

When work is unavailable to staff (e.g. the business has closed and they do not work at home) and they are available to work, employers have no right to refuse them pay. Employers also cannot insist that their staff should take annual leave unless adequate notice is give.

More information is available on the Acas website link here

Thanks for reading, if you need any help or want some advice on holiday entitlement or any other payroll services visit us at www.citylightspps.com

Payroll Survey – Integrating Tax and NIC

2011-08-01T04:29:00.000-07:00

Would integrating tax and NICs reduce burdens on business? The government has published a call for evidence on whether this might remove economic distortions and provide a fairer tax system.

The Chartered Institute of Payroll Professional (CIPP) have created a survey for so that you can provide a formal response. Expect the survey to take approximately 20 to 30 minutes of your time. It has a mixed style of questions due to the nature of the document published by the government hence the time required to complete the questionnaire. The closing date for submissions of this survey is the close of business on 2 September 2011, giving sufficient time for the CIPP team to analyse the results and produce a thorough response.

Please take time to complete the survey as once again similar to RTI for reporting tax and NICs, this could lead to a fundamental change as to way the profession calculates tax and NICs.

Payroll services are constantly changing and there are some big overhauls of the PAYE system over the brow of the hill and around the corner. If you want to keep a head of the times and stay one step ahead of your competitors try our outsourced payroll services at no obligation.

Debt Collection Through Payroll Services and PAYE

2011-08-01T04:24:00.000-07:00

On 20 July 2011 regulations came into force for the first time to allow HMRC to collect up to £3000 through the payroll PAYE code. Responses to these changes are collated here within this document published on HMRC’s website: Summary of responses: Collecting debts through PAYE

The PAYE code has always been able to collect small underpayments of certain taxes by HMRC, but the change in regulations means underpayments and debts will now be collected:
• Underpayments arises when HMRC reconcile information on PAYE (employee) taxpayer records following the end of the tax year; for example if a taxpayer has more than one job or more than one source of income or receives payroll benefits.
• Debts are where taxpayers fail to pay what’s due on time and the outstanding sum gets referred to HMRC’s Debt Management team for recovery action.

HMRC will use this additional method of recovery for Self Assessment debts and Tax Credits overpayments. Letters will go out to selected individuals with outstanding debts from August 2011, and to Tax Credits claimants with overpayments due for direct recovery, from early October 2011.

The letters will notify them that the money they owe can now be collected through their pay/salary thus reducing their PAYE code. The tax code would then require adjusting to collect the debt over twelve months from April 2012. For individuals whom do not wish their PAYE code to be reduced, they should contact HMRC once a letter has been received.

Safeguards to prevent hardship and excessive deductions will still apply as usual for payroll PAYE.
Information about recovering debts from PAYE Payroll codes is published on Business Link website: www.businesslink.gov.uk/problemspayingHMRC

If you need anymore help or have any questions with PAYE codes then get in touch with us: www.citylightspps.com - we're always happy to help!

Are You Thinking of Working Beyond Retirement?

2011-07-27T08:51:00.000-07:00

A request to remain in employment after the age of 65 must be considered 'in good faith' an employment appeal tribunal has held in the case of Ayodele v Compass Group,
An employer must approach requests to be allowed to continue working with an open mind and not rely on employees to retire at the age of 65 as a blanket policy; even if such a policy is in place.
Mr Ayodele’s employer informed him of the intention to retire him at age 65 and his entitlement to request an extension. Mr Ayodele did so, but his request was refused without reasons, as was his appeal. A claim for unfair dismissal and age discrimination was then brought. The Claimant's claim was that he had been unfairly dismissed on the basis that the Respondent had not given genuine consideration to the request and the employment tribunal upheld this as saw a breach in obligations under paragraphs 7 and 8 of Schedule 6 to the Employment Equality (Age) Regulations 2006.

Unusually, at first instance the Claimant gave evidence that there had been substantial discussion of his request, whereas the Respondent's witness asserted that he had already decided that the policy would apply rigidly and the meetings were only a formality.

On the basis of the Respondent's account, it was upheld there was an obligation and duty to consider the request in good faith, in the sense that an employer must genuinely consider whether it should be accepted. However, the EAT noted that it will usually be very difficult to show bad faith. No inference can be drawn from the refusal of a request, nor from the fact that a policy exists of not agreeing to such requests.
Issue such as the above can occur within your payroll. As your Payroll Service we can offer you a FREE HR and employment law support service to help you mediate such problems, nipping them in the bud.

Request Time To Train Sidelined

2011-07-18T01:20:00.000-07:00

The right to request time to train will not be extended to employees of small and medium businesses, the government has announced. The situation however for large employers will remain in place.

Last August saw the launch of a consultation on the future of the right to request time to train which in 2010 had been introduced across the UK for employees in organisations with 250 or more employees. It was due to be extended to cover employees in all other organisations from April 2011 as part of the government’s review of all regulations in the pipeline, a carryover from plans of the previous Labour government.

Options put forward in the consultation meant the government concluded that it could not proceed with the planned extension of the right to all employees in April 2011. The responses showed there was little support for making changes to. It was not possible to conclude that the consultation had delivered a decisive message in favour of the full repeal of the right.

Given this position, the right to request time to train will therefore not be extended to employees of small and mediums sized organisations for the foreseeable future. This decision will allow time for the evidence base to support the effectiveness of the policy to develop over time. The position will be kept under review. The right will continue to be available to employees in large organisations with 250 or more employees. Any future decision on the policy will take account of evidence about levels of employer and employee investment in skills, as set out in The Plan for Growth

If you have a medium or small business and would still like to develop your staff despite the above through training and other means. In procuring us to manage your Payroll Services, you will have access to our Benefits Package. The Package will allow you to develop your employees in areas such as Training, Team Building, Workshops, and offer product and service Discounts. We will drive this forward for you. Contact our Payroll Services team for details.

Payroll Harmony

2011-07-05T09:22:00.000-07:00

The people of the world cried ‘payment’ for our labour spent, but still no
coin arrived.

The elders in all their wisdom knew not how to issue a wage in accordance with the laws of the land and despite their endeavours, could not agree on the sums to be paid.

The elders became restless as the people grew anxious so sort to relinquish the tasks of wages to an entity who could manage this clerical process.

From that day forth the collective united in bond, peace prospered throughout the world whilst tranquillity and virtue was felt in the hearts of all.

By Scott Muller

Citylights Professional Payroll Solutions Ltd

Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

Employee Benefits Package Now Launched!

2011-06-23T03:17:00.000-07:00

Our Employee Benefits Package was officially launched this week and will allow our customers irrespective of their size an easy way to engage in their social responsibilities. We are a Payroll Services Company who care about this issue very much and what the package enables us to do is in a very simple way, encourage a change in attitude between employer and employee by hosting various events throughout the year and promoting key responsibilities as employers of staff. The package achieves this by encouraging and organising events to take place under the headings of Training, Team Building, Workshops & Surgeries and Memberships & Discounts.

In embracing payroll services and our Employee Benefits Package into your business, you will see huge improvements in the motivation, productivity, work ethic, working relationships and profitability of your staff. In fact, every aspect of what your employees do will improve. We say this, not because of what we are doing in the events, but because you the employer will be showing your employee's, that you do care about them! Their health, their development, their lives! This is the reason a work force will respond so profoundly to these events, ultimately creating a more profitable business for you.

There is absolutely no upper limit to the amount of events that you can host within any given year, it is entirely up to you. We will suggest events to you and will let the concept grow at a pace which is suitable for your business. In terms of cost, in most cases we are able to deliver our Workshops & Surgeries at your premises for free. We have access to Memberships & Discounts which can instantly save you, your business and your employee’s money. Typically our training events can save you anything up to 35% off the cost compared to you going direct and this is a similar situation when we arrange your Team Building events.

This Employee Benefits Package has been specifically designed for you and your business, it's completely transparent and incredibly easy to integrate into any business. If you like the sound of this Package and would like to know more, contact us now for further info. My details are below.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

Gross Misconduct – The What’s, Why’s and How’s

2011-06-23T03:14:00.000-07:00

There appears much misunderstanding about the definition of gross misconduct, mainly because employers have a subjective interpretation upon it rather than a legal one. An employer who is particularly annoyed about the behaviour of an employee, will treat the incident as one of gross misconduct. This can often lead to a snap decision and they sack the person “on the spot” without warning or compensation. Do not make mistakes like this – the cost of thousands of pounds awarded against should be incentive enough.

First, we must look at ‘’what’’, what is gross misconduct? It is conduct that shudders at the root of the employment relationship making continuation of the relationship between employer and the employee unsustainable. Examples might include assault on another employee, breach of health and safety regulations endangering others, wilful damage to company property, sexual misconduct, harassment and bullying, serious breach of confidentiality, falsification of records or expense claims. It’s a good idea to create a list of what your organization classifies as gross misconduct and publish it to every employee at all levels, including it in your employee handbook is a good place to start.

It is unlikely you will conjure up every form of misbehaviour that would fall into the definition of gross misconduct, so just stick to giving examples. Give some obvious ones such as those listed above, when you have completed your list, add a comment that the list is not exhaustive and that behaviour of similar seriousness will be treated as gross misconduct.

When an employee commits an offence on your list, treat it as gross misconduct. If you feel extenuating circumstances are relevant to the case, such as the employee’s long service and good behaviour, still treat the incident as gross misconduct so not to dilute the seriousness of the rules. Instead, modify the sanction if you feel it appropriate. Offences not listed, should be considered for severity against one or two of the others on your list. If in doubt, try our payroll services HR and Employment Law Support.

If you believe gross misconduct has been committed by the employee, normal discipline procedure rules should be applied, however if in your opinion the employee’s presence on the premisses could threaten other people or could interfere with your investigation, you should require him or her to stay away from the site on full pay until you are ready to conduct a discipline hearing. The word “investigation” is a key word as an investigation must always be conducted, however obvious the offence. Interviewing witnesses and checking through records will help you evaluate the incident for a written account of the problem to be produced. If it is you that was involved in the incident, for example the employee threatened you, have neutral conduct both the investigation and the disciplinary interview. Pass the result of the investigation to the employee, give him or her a couple of days to read it, and arrange a discipline interview. Be sure to inform the employee of the right to be accompanied by a colleague or trade union official.

If after the investigation you are satisfied that gross misconduct has occurred, you should dismiss the employee with immediate effect. This is called summary dismissal. You should pay the employee all to which he or she is entitled to date, but for no longer.

Please be warned, before you set off down the path towards dismissal for gross misconduct, read this article again, read your own discipline procedure, make sure that you are justified in treating the incident as gross misconduct, be sure to follow your procedure to the letter, and make a written record of all that you do and all that is said. And if you or any of your colleagues are unsure about any of this, contact our payroll services HR and Employment Law Support, or get in touch with me - my details are below.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

Celebrating National Payroll Week

2011-06-23T03:07:00.000-07:00

Make payroll shine and celebrate in the industry’s most important week of 2011. Save these dates in your diary and make sure you don’t miss out, Help make this the biggest and best National Payroll Week (NPW) yet!

Making payroll shine is the theme this year, so from the 5-9 September, your payroll service should be focusing on adding a little sparkle to the profession and those in it. The Chartered Institute of Payroll Professionals (CIPP) gained Chartered status this year pushing the profession forward and putting it in the spotlight! Thus making this year’s NPW that little bit extra special.

As the profile of the payroll profession continue to grow, NPW provides a fantastic opportunity to recognise the unsung heroes of your payroll service or your payroll staff and with the help of our NPW pack, you can show everyone in your organisation exactly what you do and how it affects them personally as well as celebrating your hard work.

Payroll professionals everywhere should get involved in becoming part of payroll’s biggest celebration of the year, make payroll shine, there are no excuses to miss out…
Request your NPW pack

The CIPP have produced a promotional pack to help you celebrate NPW and support the CIPP and the payroll profession. Packs include posters, stickers and balloons which you can use to decorate your office. In addition, the pack provides you with some top tips for getting noticed and suggests ideas that you could use to promote NPW in your office or payroll services.

In addition to the NPW pack, the website will feature even more information and promotional items for you to use including cake recipes, sticker templates and banners, so make sure you request your pack and start planning ways to celebrate.

Unemployment falls as private sector hires, and public sector files

2011-05-25T08:43:00.000-07:00

Unemployment fell by 36,000 in the three months to the end of March to 2.46 million, the second quarterly drop in a row, the Office for National Statistics said. Economists cautiously welcomed the figures, which suggested the economy was continuing to improve after the drastic slowdown in the final few months of last year.

However, all of the jobs created appeared to be in the private sector, with private companies starting to hire many of those sacked from the public sector. Economists warned however, that firms would not be able to continue to offset all the jobs being axed in the public sector. The figures indicated that 45,000 jobs had been lost in the public sector in the last three months, leaving 6.19 million on the taxpayers' payroll, and 83,000 jobs had been created in the private sector.

Nigel Meager, Director of the Institute for Employment Studies, said: "It is highly implausible, in the immediate future at least, that new private sector jobs will absorb the staff being thrown out from the public and voluntary sectors. The problem is exacerbated by the reluctance, confirmed in several recent surveys, of private employers to hire ex-public sector staff." The figures also showed that the number of people claiming Jobseeker's Allowance (JSA) raise by 12,400 in April to 1.47 million, with about half of the increase down to lone parents moving from income support to JSA. Under an initiative instituted by the previous Government, lone parents with children over the age of 7 can no longer receive income support; instead they need to claim JSA if they cannot find a job.

Economists said a rise will depend on how well the economy performs as the Government’s austerity cuts take hold.

Howard Archer, an economist at Global Insight, said: “MPC members … are currently still in no hurry to act given the recent weakness of the economy, the uncertain outlook and a lack of evidence that elevated inflation expectations are leading to higher wages.”

If you would like more information or any other Payroll Services you may need help with, get in touch with me on Twitter or visit my website www.citylightspps.com.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

P11P Processing Update From HMRC

2011-05-25T08:30:00.000-07:00

HMRC has looked at the P11D data held for the 2009-10 tax year and can now share with CIPP members the main issues experienced during processing.

The top two errors are recording information on P11Ds for car and car fuel benefit details, meaning incorrect tax codes for some employees. These were:

• Fuel benefit not included – employers must include the details where this applies and significant numbers of P11Ds were submitted without this information. Amended P11Ds are required to correct the employee’s tax code.
• Incorrect completion of “from and to” dates – some employers completed the boxes for “dates car available” giving the period dates, e.g. 6/4/2009 to 5/4/2010. If the car was available in the previous tax year then the “from” box should not be completed. This also applies if the car will be available in the next tax year – the “to” box should remain open so that the tax code is carried into the next tax year (2010-11 in this example).

A number of employers now tax their employee benefits via payroll services and whilst this is fine, it can cause problems for both you and HMRC if you have not made this clear before submitting information. P11Ds are required but you must inform HMRC before you payroll benefits and clearly mark any P11D submissions “PAYROLLED”. This will prevent processing the form to update the tax code and stops the employee from being taxed twice.

HMRC has also identified that some codes were wrongly operated on a Wk1/Mth1 basis. The reason for this was that, in some cases, National Insurance and PAYE Service (NPS) was not correctly picking up estimated salary details. As a result, when the new tax code was calculated it did not recognise that there had been a potential under-deduction of tax. HMRC’s analysis shows that this happened through a combination of errors; some employer based within the P11Ds submitted, and some processing issues as already described.

When an individual or the employer contacts HMRC, action is quickly taken to put things right. Anyone who still believes their tax code is incorrect because of P11D information should contact HMRC Tax Helpline on 0845 3000 627 or write to HMRC using the address shown on their coding notice.

In addition, HMRC has recently published a ‘What’s New’ message and associated web guidance, which can be viewed at HM Revenue & Customs: 2010-11 P11Ds - important information for employers who have payrolled expenses and benefits and April’s Employer Bulletin also contains an article about ‘Errors completing P11Ds may cause problems with employee tax codes.’

HMRC plans to process P11Ds as soon as possible after their receipt, meaning that new coding notices for 2011-12 will be issued for employees whose circumstances have changed and this is not already covered in their code. Processing P11Ds earlier should mean smaller in-year underpayments are created for employees.
HMRC also advises that the reporting of benefits in kind is not currently included within the scope of the Real Time Information (RTI) system, which HMRC will pilot from April 2012. Where an employer already has an agreement with their tax office around payrolling benefits RTI will require details of the amounts of benefits payrolled to be reported within the RTI submission. Nonetheless, employers reporting under RTI will still be required to submit forms P9D, P11D and P11D(b) at the end of the year for all of their employees whether or not any benefits were included in their payroll services.

If you need more help with your HMRC Legislation or any other Payroll Services you may need help with, get in touch with me on Twitter or visit my website www.citylightspps.com.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

P46 (EXPAT) Update – What Do They Know?

2011-05-25T08:20:00.000-07:00

When an employer takes on a new employee in the UK then they should
submit one of the following forms to HMRC:
P45 Part 3 - When a new employee starts
P46 - When a new employee starts, but has no P45 from their
previous employer
P46 (Expat) - For certain employees seconded to work in the UK

At the February meeting of the Expats Forum, HMRC advised that the emergency code, rather than code 0T, would continue to apply for expatriate employees for whom P46(Expat) is appropriate, where: -
•    The employee does not provide Parts 2 and 3 of Form P45;
•    The employee does not complete and sign form P46; or
•    The employee does not provide the employer with the information required by Form P46 by an alternative method.

Citylights Payroll Services bring you an update from HMRC for your information:
“This was based on our understanding at the time of the effect that the amendments to the Income Tax (PAYE) Regulations 2011 would have. These amendments were laid on 11 March 2011 and they make clear that Code 0T will apply where Form P46(Expat) is not completed and signed by the expatriate employee or the relevant information is not supplied by other means to the employer by the expatriate employee.

In a situation where an expat employee is entitled to personal allowances and are given a 0T code, we will reinstate those allowances as soon as we receive the P46(Expat). If there any problems in providing the P46 (Expat), PTI Manchester will endeavour to get the code amended by telephone. Please note that in these circumstances, Code 0T is operated on a non cumulative basis.”

If you need more help with your Employer Legislation or any other Payroll Services you may need help with, get in touch with me on Twitter or visit my website www.citylightspps.com.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel   0844 576 33 08
Fax   0844 556 12 72
Email: scott@citylightspps.com

HMRC have issued a Video Explaning Penalties for Inaccuracies

2011-05-25T08:08:00.000-07:00

Follow the links below to view a video and transcript of an HM Revenue & Customs (HMRC) presentation on ‘Penalties for inaccuracies in documents and returns’. The video runs for 20 minutes and covers:
•    When a penalty is chargeable
•    Types of behaviours associated with the penalty regime
•    Prompted and unprompted disclosures
•    Reductions and quality of disclosures
•    Penalty calculations
•    Suspensions and appeals.

HMRC's YouTube video contains a very basic summary of Schedule 24 FA 2007 Penalties for errors. If your computer does not have a sound card or you have no headphones you can read a transcipt of the video.
An interesting point to note about the error penalty regime not mentioned in the video is that although any penalty for carelessness may be suspended – HMRC had in previous Learning Together events indicated that it would not allow suspension for one-offs. There seems to be no legislative basis for this.

If you need more help with HMRC Legislation or any other Payroll Services you may need help with, get in touch with me on Twitter or visit my website www.citylightspps.com.

Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel   0844 576 33 08
Fax   0844 556 12 72
Email: scott@citylightspps.com

'The Race' by Dee Groberg

2011-05-04T03:43:00.000-07:00

"The Race by Dee Groberg

"Quit! Give up! You're beaten!"
They shout at me, and plead
"There's just too much against you now.
This time you can't succeed."
And as I start to hang my head
In front of failure's face
My downward fall is broken by
The memory of a race.
And hope refills my weakened will
As I recall that scene
For, just the thought of that short race
Rejuvenates my being.

A children's race, young boys, young men
Now, I remember well,
Excitement, sure! But also fear,
It wasn't hard to tell.

They all lined up so full of hope
Each thought to win that race,
Or, tie for first, and if not that,
At least take second place.

And fathers watched from off the side
Each cheering for his son.
And each boy hoped to show his dad,
that he would be the one.

The whistle blew, and off they went
Young hearts and hopes afire
To win, to be the hero there
Was each young boy's desire.

And one boy in particular,
Whose dad was in the crowd,
Was running near the head and thought:
"My dad will be so proud!"

But as they speeded down the field
Across a shallow dip
The little boy who thought to win,
Lost his step and slipped.

Trying hard to catch himself,
His hands flew out to brace
And 'mid the laughter of the crowd
He fell flat upon his face.

So, down he fell, and with him hope
- he couldn't win it now -
Embarrassed, sad, he only wished
To disappear somehow.

But, as he fell, his dad stood up,
And showed his anxious face,
Which to the boy so clearly said:
"Get up and win the race."

He quickly rose, no damage done,
- behind a bit, that's all -
And ran with all his mind and might
To make up for his fall.

So, anxious to restore himself
- to catch up and to win -
His mind went faster than his legs;
He slipped and fell again!

He wished, then, he had quit before
With only one disgrace.
"I'm hopeless as a runner now;
I shouldn't try to race.

But, in the laughing crowd he searched
And found his father's face.
That steady look that said again!
"Get up and win the race."

So, up he jumped, to try again
- ten yards behind the last -
"If I'm to gain those yards," he thought
'I've got to move real fast."

Exceeding everything he had
He gained back eight or ten,
But trying so, to catch the lead,
He slipped and fell again!

Defeat! He lay there silently
- a tear dropped from his eye -
"There is no sense in running more;
Three strikes, I'm out, why try?"

The will to rise had disappeared
All hope had fled away
So far behind; so error prone
A loser all the way.

"I've lost, so what's the use," he thought
"I'll live with my disgrace."
But, then he thought about his dad,
Who, soon, he'd have to face.

"Get up!" an echo sounded low,
"Get up, and take your place
You were not meant for failure here,
Get up, and win the race."

With borrowed will, "Get up," it said
"You haven't lost at all.
For winning is no more than this;
To rise each time you fall."

So, up he rose to run once more,
And with a new commit
He resolved that win, or lose,
At least he wouldn't quit.

So far behind the others now
- the most he'd ever been -
Still, he gave it all he had,
And ran as though to win.

Three times he'd fallen stumbling.
Three times he rose again.
Too far behind to hope to win
He still ran to the end.

They cheered the winning runner,
As he crossed the line first place,
Head high, and proud, and happy.
No falling, no disgrace.

But, when the fallen youngster
Crossed the line last place,
The crowd gave him the greater cheer
For finishing the race.

Even though he came in last.
With head bowed head low, unproud,
You would have thought he won the race
To listen to the crowd.

And to his dad, he sadly said,
"I didn't do so well."
"To me, you won!" his father said,
"You rose each time you fell."

And now when things seem dark and hard,
And difficult to face.
The memory of that little boy
Helps me to win my race.

For all of life is like that race
With ups and downs and all,
And all you have to do to win,
Is rise each time you fall.

Scan this image into your
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Statutory Payments 2011/12

2011-04-18T09:07:00.000-07:00

Statutory Sick Pay (SSP)

	2010/11	2011/12
Minimum average earnings Standard rate	£97.00 £79.15	£102 £81

Statutory Maternity Pay (SMP)

	2010/11	2011/12
Minimum average earnings Standard rate Higher Rate	£97.00 90% of average earnings Lesser of £124.88 and 90% of average earnings	£102 90% of average earnings Lesser of £128.73 and 90% of average earnings

Statutory Paternity Pay (SPP)

	2010/11	2011/12
Minimum average earnings Standard rate	£97.00 Lesser of £124.88 and 90% of average earnings	£102 Lesser of £128.73 and 90% of average earnings

Statutory Adoption Pay (SAP)

	2010/11	2011/12
Minimum average earnings Standard rate	£97.00 Lesser of £124.88 and 90% of average earnings	£102 Lesser of £128.73 and 90% of average earnings

The new rates of SMP, SPP and SAP are payable in the first week starting on or after 3^rd April 2011. The rate of NI compensation on SMP recoverable under Small Employer’s Relief reduces to 3%.

Fathers may now take a portion of a mother’s maternity leave should she return to work early. If the mother has not been paid the full 39 weeks SMP then the father may be entitled to payment of Additional Statutory Maternity Pay at these rates.

Income Tax & Personal Allowances 2011/12

2011-04-18T09:05:00.000-07:00

Income Tax Bands

	2010/11	2011/12
Basic rate: 20% Higher rate: 40% Additional rate: 50%	£0 - £37,400 £37,401 - £150,000 Over £150,000	£0 - £35,000 £35,001 - £150,000 Over £150,000

Income TAX Personal and

Age-Related Allowances

	2010/11	2011/12
Personal allowance (age under 65) Personal allowance (age 65 – 74) Personal allowance (age 75 and over) Married Couple’s allowance (age 75 and over) Married Couple’s allowance – minimum amount Income limit for age related allowances Blind person’s allowance Married couples allowance is given at the rate of 10 per cent.	£6,475 £9,490 £9,640 £6,965 £2,670 £22,900 £1,890	£7,475 £9,940 £10,090 £7,295 £2,800 £24,000 £1,980

Pension Schemes Allowances

	2010/11	2011/12
Basic rate: 20% Higher rate: 40%	£255,000 £1,800,000	£50,000 £1,800,000

The Coalition Government has opted not to introduce the proposed restriction on tax relief for high earners proposed by the previous Government, and instead has significantly reduced the maximum annual cash contribution that can be made tax free to a pension scheme. Relief on the contribution is granted at the taxpayer’s marginal rate of tax.

National Insurance Contributions 2011/12

2011-04-18T08:58:00.000-07:00

Class 1

Pay Frequency	Lower Earnings Limit	Secondary Earnings Threshold	Primary Earnings Threshold	Upper Accrual Point	Upper Earnings Limit
Weekly	£102.00	£136.00	£139.00	£770.00	£817.00
Monthy	£442.00	£589.00	£602.00	£3337.00	£3540.00
Annual	£5304.00	£7072.00	£7225.00	£40,040.00	£42,475.00

Not Contracted Out
Standard	A	12%	12%	2%	0%	13.8%		13.8%		13.8%		0%
Reduced	B	5.85%	5.85%	2%	0%	13.8%	13.8%		13.8%		0%
Over SRA	C	0%	0%	0%	0%	13.8%	13.8%		13.8%		0%
Excemption
Determent	J	2%	2%	2%	N/A	13.8%	13.8%		13.8%		0%

Contracted Out Salary Related scheme (COSR)

Standard	D	10.4%	12%	2%	1.6%	10.1%	13.8%	13.8%	3.7%
Reduced	E	5.85%	5.85%	2%	0%	10.1%	13.8%	13.8%	3.7%
Determent	L	2%	2%	2%	N/A	10.1%	13.8%	13.8%	3.7%

Contracted Out Money Purchase scheme (COMP)

Standard	F	10.4%	12%	2%	1.6%	12.4%	13.8%	13.8%	1.4%
Reduced	G	5.85%	5.85%	2%	0%	12.4%	13.8%	13.8%	1.4%
Determent	S	2%	2%	2%	N/A	12.4%	13.8%	13.8%	1.4%

*National Insurance Contributions should be shown on the payslip net of NIC rebates where applicabe

Class 1A

Paid by Employer only most taxible benefits provided in 2010/11 at 12.80%

Payment due no later than 19^th July 2011 following end of tax year in which the benefits were provided. Please note that class 1A rate rises to 13.8% on benefits provided during the 2011/12 year for settlement with HMRC by 19^th July 2012.

Class 1B

Paid be Employer only due on PAYE Settlement Agreements (PSA’s) at 12.8%

Payment due no later than 19^th October following end of tax year in which the benefits were provided. Please note that the class 1 B rate rises to 13.8% on PSA’s operated in 2011/12 for settlement with HMRC BY 19^th October 2012.

Other Classes of NI

Class	2010/11	2011/12
Class 2 Flat rate for self employed Class 2 small earnings exception per year Special Class 2 rate for share fisherman Special Class 2 rate for volunteer Development workers Class 3 Voluntary Class 4 lower profits limit er year Class 4 upper profit limits per year Class 4 rate between lower and upper profits limit Class 4 rate above upper profits limit	£2.40 £5075 £3.05 £4.85 £12.05 £5,715 £43,875 8% 1%	£2.50 5315 £3.15 £5.10 £12.60 £7,225 £42,475 9% 2%

Payroll - Minimum Wage to Increase in October 2011

2011-04-13T09:52:00.000-07:00

The national minimum wages is going to increase by 15p after the Government confirmed it would apply recommendations made by the Law Pay Commission.
The rise will see the adult minimum wage rate increase from £5.93 to £6.08 an hour, the Youth Development Rate rise from £4.92 to £4.98 an hour and the 16-17 Year Old Rate increase to £3.68 from £3.64 an hour. The Apprentice Rate will also increase from £2.50 to £2.60 an hour.
But growing youth unemployment means other age groups will see a lower proportional increase “to help protect their labour market position,” explained the Low Pay Commission, which advised the government on the new levels. Although all the pay rises are well below the current rate of inflation – RPI currently stands at 5.5 per cent – the news was welcomed by the TUC.

These rises are relatively modest to most payroll services, but they will provide a welcome pay boost for around 840,000 low-paid workers in the UK. But Unite branded the”paltry” increases for 16-20 year olds an “insult”. “This small increase in the minimum wage is completely outstripped by the current rate of inflation,” said Unite general secretary, Len McCluskey.

Business groups also reacted negatively to the government’s move – although they claimed the increases were excessive during a time of economic recovery. The British Chambers of Commerce (BCC) described it as “the wrong increase, at the wrong time”. “Youth unemployment is at a record high and we can’t afford to price young people out of work,” said David Frost, BCC’s director-general.

It’s clear from speaking to businesses that a significant number have to freeze wages in 2011. These changes will be a barrier to job creation, and ultimately economic recovery.

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you are also facing the same problems which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are as follows:
In the meantime for more business information you can follow us on Facebook, twitter and Linkedin
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

Payroll Alert - April Bank Holidays

2011-04-13T09:50:00.000-07:00

If you haven’t noticed, there are lots of bank holidays in April. Have you considered your Payroll Services date might change at all? If you are a Citylights Payroll Services customer and you do need to change your Payroll Processing date please give us information about this change as early as possible and thanks to all of you who have already told us about their payroll changes. This will be greatly appreciated.
Key Changes in Payroll from 6th April 2011
Below is the quick reminder of Payroll changes from 6th April 2011
-Personal allowance rise from £6,475 to £7,475
-Employers NIC rise from 12.8% to 13.8%.
-Employees NIC increases from 11% to 12%
-Childcare relief to be restricted for higher earners joining after 6th April 2011.

Budget 2011: How Might it Effect You?

2011-04-13T09:48:00.000-07:00

George Osborne’s has delivered his budget and the numbers have been crunched. So what does it all mean to your pocket and your payroll services?

Economy

• The independent Office for Budget Responsibility (OBR) forecasts growth of 1.7% (down from 2.1%) for 2011, 2.5% next year, 2.9% in 2013, 2.9% in 2014 and 2.8% in 2015 (this compares to OECD forecast of 1.5% for 2011 and 2.0% for 2012).
• OBR forecasts inflation to remain between 4% and 5% for most of this year, dropping to 2.5% next year and 2% in two years' time.

Tax and duty

Personal tax allowance to rise from £7,475 to more than £8,105 in April 2012 and 43 tax reliefs abolished to simplify the system. Rate relief holiday for small businesses extended to October 2012. Inheritance tax discount for charitable donations
• Corporation tax to be reduced by 2% from April, to fall eventually to 23% - the lowest corporation tax among the G7 industrialised countries.
• A £50,000 charge for non-doms who have lived in the UK for 12 years.
• Tax avoidance loopholes to be closed, raising £1bn.
• Charge on non-domiciled taxpayers to increase from £30,000 for those here for seven years to £50,000 for those in the country for 12 years, raising more than £200m.
• No further changes to alcohol and tobacco duties, which will see a 2% rise above inflation. Tobacco duty regime reformed to narrow differential between lower-cost brands and others.

Public sector

Pay rise of £250 for armed forces, prison, NHS, teachers and civil servants earning under £21,000.

Housing

• Reviews launched of the revenue raised by the 50p tax rate and the taxation of very high-value property.
• £250m to help first time buyers purchase newly built homes.
• Support for mortgage interest scheme extended for a year.

Enterprise

• £350m worth of regulation on businesses to be removed.
• Relief for entrepreneur tax doubled to £10m.
• Entrepreneurs relief scheme to be doubled to £10m from 6 April.
• Small business rate relief holiday extended by one year to October 2012 at a cost of £370m.
• 21 new enterprise zones to be funded, including in Manchester, Birmingham and London. Ten others to be named in the summer..
New funding to double the number of university technical colleges from 12 to at least 24.
• Number of places on a new work experience scheme to increase to 100,000 over two years, rather than 20,000 as previously announced.
• Funding for 40,000 new apprenticeships for young unemployed.
Giving
• Gift aid administration to be simplified, especially for small donations.
• Inheritance tax discount for charitable donations.

Pensions

• Government to seek automatic mechanism for future increases in state pension age, based on regular reviews of longevity.
• New single tier pension, worth £140 a week. This would not apply to current pensioners.
Fuel duty
• New fair fuel stabiliser to be introduced, funded by increasing the supplementary charge on North Sea oil and gas production from 20% to 32% from tomorrow.
• Fuel duty cut by 1p a litre from 6pm tonight.
• Inflation rise in fuel duty planned for next week to be delayed until 2012.

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above.
In the meantime for more business information you can follow us on Facebook, Twitter and Linkedin
Citylights Professional Payroll Solutions Ltd
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com

Absenteeism causes employers a headache

2011-04-13T09:44:00.000-07:00

In a speech, delivered as the Government’s Welfare Bill was announced, the Prime Minister David Cameron has announced a review in to sickness absence. Jointly chaired by David Frost, Director General of the British Chambers of Commerce and Dame Carol Black, National Director for Health and Work, the review will explore radical new ways on how the current system can be changed to help more people stay in work and reduce costs.

Reporting later this year, the report will consider if the balance of the costs associated with sickness and absence are shared fairly between individuals, employers and the state. The review has also been briefed, on focussing on SME's and smaller employers and ensuring that any of its recommendations are consistent with the governments promotion of private-sector growth and minimising the burdens on businesses managed payroll.

Employment Relations Minister Edward Davey said:
“This is an important review which will help tackle the problems faced by business and individuals. Managing sickness absence more effectively will be a win-win situation for all - businesses, individuals, the taxpayer and crucially, the economy. It could improve productivity, boost growth and mean that many more people no longer have to rely on taxpayer handouts”.

The review will be fed into the wider Employment Law Review, which is looking at measures to reduce red tape and remove the burdens on businesses Payroll Services. The manufacturing employers’ group, the EEF has welcomed the move commenting that despite the changes last April with the introduction of a fit note rather than the old sick note system there are still barriers remaining to getting people back to work.
“I look forward to working with Dame Carol Black to reduce the unsustainable bill on both employers and the state caused by sickness absence, and making radical recommendations to achieve this.”

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you are also facing the same problems which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are below.

In the meantime for more business information you can follow us on Facebook, Twitter and Linkedin
Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,

What clients say about the Payroll Services CityLights Provide

2011-04-04T08:29:00.000-07:00

Our Payroll Services clients have paid a little tribute to CityLights Professional Payroll Solutions, so we thought we'd show what our clients think of our Payroll Services:

Below is the transcript to our Payroll Services tribute:
00:26:000 Elizabeth Connolly - General Manager, Prested Hall
I definately recommend CityLights Professional Payroll Solutions, they give me a professional, friendly payroll service, which we appreciate in the hospitality industry as we have a varied payroll, a long payroll and we need answers straight away. That's the service we get from Citylights.

00:45:000 Jeanette Barber - Office Manager, Prested Hall
The main advantages to using Citylights is we can outsource our Payroll Services to a professional Payroll company with a quick turnaround, meaning our staff can rely on their wages, and we can rely on Citylights.

01:16:000 Nazir Ahmed - Managing Director - Subway
The service has been excellent, customer care has been really, really good. Always get a follow-up call, always get an email and any queries we have, any questions, get answered very quickly. We're a local company based in Southend, Citylights are local, they've been very, very reliable and one of the most important things is they've been very, very contactable

01:58:000 Fred Farenden - Club-Treasurer
We've found that while Citylights are doing our wages for us, it frees up all the time we need in the office to get on with other work. We're very delighted with Citylights' Payroll Services and we find that as soon as we've got any queries they're answered quickly and are very good.

As always thanks for visiting, if you have any questions or queries please get in touch with us, our details are below:

Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd

Fuel cards News Motoring Updates: New Advisory Fuel Rates Launched by HMRC

2011-03-14T06:45:00.000-07:00

HMRC will review the Advisory Fuel Rate (AFR) “shortly”, with the new rates applicable for all business journeys on and after 1st March 2011.

The revision comes in a light of recent hikes in fuel prices, as HMRC confirms in a recent announcement, they will review the Advisory Fuel Rate (AFR) schedule "shortly", with the new rates applicable for all business journeys on and after 1st March 2011.

"In light of the recent level of increases in UK average fuel pump prices since 1st December 2010, HM Revenue & Customs will be publishing new advisory fuel rates shortly. These will take effect from 1st March 2011."

The new AFRs, with the old mileage rates in brackets are:
Engine size Petrol Diesel LPG
1400cc or less 14p (13p) 13p(12p) 10p (9p)
1401cc to 2000cc 16p (15p) 13p(12p) 12p (10p)
Over 2000cc 23p (21p) 16p(15p) 17p (15p)

Fleet manager’s trade association ACFO has heavily criticised the rates - paid to company car drivers to reimburse fuel used on work business - for being severely out of date and leaving drivers out of pocket. In her initial response to the news, ACFO chairman Julie Jenner identified that the work done by ACFO over an extended period has been highly significant in ensuring that the "official rates" will bear a closer relationship to the actual costs being incurred by many employees while driving on employer's business.

For advice or further information, contact Citylights Professional Payroll Services. Our details are below.

Other Payroll Updates

Sickness absence system to be reviewed

Independent review will look at changing the current sickness absence system and reducing the £100 billion ill health costs the economy each year.

The Prime Minister David Cameron has announced a review into sickness absence to be jointly chaired by David Frost, Director General of the British Chambers of Commerce and Dame Carol Black, National Director for Health and Work, the review will explore radical new ways on how the current system can be changed to help more people stay in work and reduce costs.

Additional funding for health and work programmes

Also announced today is an additional £12 million of funding for programmes including the Fit for Work System and Occupational Health Advice Line. Both have already proved highly successful in providing support for both employers and individuals in the early stages of sickness absence.

Fit for Work Services bring together support such as healthcare, employment, skills, housing and debt advice, and will benefit employers, employees, and in turn the taxpayer by reducing pressure on general practice and other health-related services.

The national Occupational Health Advice lines are valued by employers and provide practical occupational health advice for small and medium-sized businesses on handling individual employee health problems at work.

For the Citylights Professional Payroll Services newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above, please visit Citylights Professional Payroll Services website, or contact us - our details are below.

Or for more business information you can follow us on Facebook, Twitter and Linkedin

Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd

Extended Paternity Leave 'Makes Business Sense'

2011-03-07T09:21:00.000-08:00

Men need to be "actively encouraged" to take time off work to look after their newborn babies, according to Nick Clegg, the Deputy Prime Minister. But will his proposals for shared parental leave work?

The Government’s move to extend paternity leave by up to 10 months has caused unease in parts of the business community. Small businesses in particular claim the plans will lead to a massive administrative disturbance in planning and arranging cover for fathers who were previously only entitled to two weeks off.

Small business groups have warned companies would struggle to cope with “yet more red tape”. They say employers already face the parental leave changes taking in place in April 2011, which will allow the mother to transfer up to six months of her leave to the man, provided she returns to work. Going one step further and offering potentially 10 months is too far, organisations' lobby groups have claimed.

Human resources (HR) professionals have a challenge on their hands. Those organisations keen to show they are committed to equal opportunities and flexible working should lap the new legislation up and use every opportunity possible to promote their family-friendly policies to future and existing employees. HR's job is to convince chief executives that these proposals will make a difference to the bottom line in the long run, through increased retention and reduced recruitment costs. The new parental leave legislation coming this April should mark the start of simplifying a range of leave policies so they are the same for both men and women, over the working lifecycle. That can only be a good thing.

But this policy is fairer for those firms that employ a lot of women. For a change, companies that employ more men are also going to be affected. We must remember that British firms have some of the most innovative and flexible working arrangements in Europe. They are likely to already have the skills and procedures to be able to manage new parental leave arrangements effectively. The question is not whether businesses can afford the time and money paying attention to Nick Clegg's proposals, but whether fathers can?

All you Citylights Professional Payroll Services newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above, we have 3 tips for managing parental leave:

• Make sure that current policies on maternity and paternity leave are up to date
• Think about ways of staying in contact with those on leave to keep them in touch with the business.
• Promote your parental leave policy to show that you are an organisation people want to work for.

In the meantime for more business information you can follow us on Facebook, Twitter and Linkedin.

Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com
Citylights PPS Ltd - Payroll Services

Plumbing Profession Told To Tighten Up Tax Affairs

2011-03-07T09:00:00.000-08:00

Plumbers, gas filters and heating engineers are being targeted by the tax authorities in a clampdown on trade’s people failing to declare their earnings and pay tax.

If you are related with the plumbing profession you need to be conscious about your Tax services.
Under the tax plan, plumbers, gas fitters, heating engineers and members of associated trades who have tax to pay, which they have not yet told HM Revenue & Customs (HMRC) about, can come forward by 31 May to tell the department of their intention to disclose what they owe. If they make a full disclosure, most face a low penalty rate of 10 per cent, with a maximum of 20 per cent.

They have until August 31 to make their disclosure and arrange for payment to be made. After that date, using information pulled together from various sources, HMRC will carry out targeted investigations aimed at those who have failed to come forward and make a full declaration. Substantial penalties or even criminal prosecution could follow.

The plumbers’ tax safe plan (PTSP) is the first initiative in a campaign focused on trades people. It is designed to make it easy for those in the plumbing industry to put their tax affairs right - and keep them that way.

Mike Wells, HMRC's Director of Risk and Intelligence, said:
“Our aim is to make it as easy as possible for plumbers to come forward, make a full disclosure and benefit from a reduced penalty. This is the first step in enabling those with undisclosed income or gains to avoid a full tax investigation with much higher penalties. The message is clear: contact us before we contact you.”

The tax plan operates in two stages:
1) From 1 March to 31 May, plumbers can register with HMRC to “notify” that they plan to make a voluntary tax disclosure.
2) By 31 August, those who have registered must have told HMRC about tax due and have made arrangements to pay any tax interest and penalties due. This is called “making a disclosure”.

All you Citylights Professional Payroll Services newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above. Do not hesitate to contact us. Our contact details are below. In the meantime for more business information you can follow us on Facebook, Twitter and Linkedin.

Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com
Citylights PPS - Payroll Services

Farewell To The Retirement Age

2011-03-07T08:54:00.000-08:00

The Government has revised the default retirement age regulation to make it clear that employers are entitled to retire someone whose 65th birthday is before October this year.

If sources as to be believed, Government has recently confirmed that the Statutory Default retirement age (DRA) will be abolished with effect from 6 April 2011, less than five years after the statutory retirement process was introduced. Previous rules had specified that companies looking to retire someone before October 1st can only do so if those workers turned 65 between April 6th and September 30th, 2011.

However, the Government has now re-worded the regulations, removing the possibility of tribunal claims from workers who had already been served notices of retirement this year. The Age and Employment Network welcomed the revision. However, the lobbying group pointed out that under the new rules, employees will be allowed to ask for up to 18 months' notice from the date they receive their notice of retirement.

Under current rules, employees can already request 12 months' notice but the new rules state workers are entitled to appeal for an extra six months. Businesses do not have to grant the full 18 months, but must legally consider it under new "right to request" regulations coming into effect. In theory, someone who is issued a retirement notice on April 6th 2011 could end up leaving the company 18 months later, on October 5 2012.

Chris Ball, chief executive of TAEN, said:
“The date of 5th October 2012 is new and represents a somewhat embarrassing extension of the life of the default retirement age. Since it will only apply where someone has been informed that they would be forcibly retired on 5 April 2012 following a 12 months period of notice, and who then, following an appeal, has won an extension of six months, it is likely to involve a small number of people . If anyone is caught by the extended period in this way, one would hope that their employer would have the generosity of spirit to waive their exercise of the default retirement age completely.”

Business groups including the British Chambers of Commerce have already criticised the Government for rushing through the retirement regulations without paying attention to detail.

All you Citylights Professional Payroll Services newsletter readers, if you need any further information or you also are facing any “Retirement burnt” the same problems which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are below. In the meantime for more business information you can follow us on Facebook, Twitter and Linkedin

Scott Muller
Managing Director
Tel 0844 576 33 08
Fax 0844 556 12 72
Email: scott@citylightspps.com
Citylights PPS - Payroll Services

Electronic PAYE Payments Date

2011-02-14T03:29:00.001-08:00

HMRC are reminding payroll employers to be careful that PAYE payments made electronically have been cleared into HMRC’s bank account by the due date. Many employers have taken advantage of the electronic payment option which generally gives a later payment date of 22nd of the month.

However HMRC are stressing that where the 22nd falls on a non banking day (weekend or bank holiday) that the payment may need to be earlier to ensure that HMRC has cleared funds by the due date. HMRC need to have received cleared funds by the last bank working day before the 22nd.

HMRC using the following example:
2010/2011 PAYE months 9 for period ended 5 January 2011.
The due date of 22nd January falls on a Saturday (non-banking day), so if you are paying electronically your PAYE payments must clear HMRC’s bank account by Friday 21st January 2011. You may therefore need to change your payment date to ensure your pay on time. If you do not do so, you will be noted as paying late, and late payments for this tax years may result in penalty being charged.

HMRC may for the first time, issues penalty to any employer who makes late payments of PAYE more than once for 2010/2011. These penalty notices will not be issued after the end of the tax year.

For the Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above. Do not hesitate to contact us. Our contact details are below.
In the meantime for more business information you can follow us on Facebook, twitter and Linkedin

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solution Ltd
14 Fitzwarren,
Southend-on-sea

For Professional Payroll Services, contact Citylights PPS now.

New Statutory Payment Rates for Payroll Tax Year 2011/12

2011-02-14T03:09:00.000-08:00

All you Citylights Payroll Services newsletter readers…here is news important for all of you, which makes a difference to you and your business. Take a look at the recent development announced by the Government. Hope you are aware of this before your employees are…

In the month of January, Government announced the proposed new rates for Statutory Sick Pay (SSP), Statutory maternity Pay (SMP), Ordinary Statutory Paternity Pay (OSPP), Additional Statutory Paternity Pay (ASPP) and Statutory Adoption Pay (SAP) for the tax year 2011/2012 but the dates they would come in to effect were not entirely clear.

The business link websites now states that:
• The weekly rate Statutory Sick Pay (SSP) will rise to £81.60 with effect from 6 April 2011.
• The standard weekly rate of SMP and the weekly rates of OSPP, ASPP and SAP will rise to £128.73 (or 90% of average weekly earnings, if lower) for complete payment weeks commencing on or after Sunday, 3 April 2011.
• The weekly lower earnings limit for qualifying for SSP, SMP, OSPP, ASPP and SAP will rise to £102.00 per week with effect from 6 April 2011.

The rates are still subject to Parliamentary approval but are unlikely to change.
Also, there will be a change to the additional payment made to small employers in relation to SMP, OSPP and ASPP and SAP. Currently, employers who qualify for the small employers’ rate of reimbursement can recover 100% of the payments plus an additional amount of 4.5% in compensation for the employers’ share of National Insurance Contributions (NICs) due on the payments. From 6 April 2011 onwards the additional amount will reduce to 3%, meaning employers will be able to claim back a total of 103% of the SMP, OSPP, ASPP and SAP they pay out.

To help you understand who comes under a small employer, we have defined this for you: A small employer is an employer who has paid total gross Class 1 NICs below an annual threshold in a qualifying tax year. For the 2011/12 tax year, the annual threshold remains at £45,000 or less.

The additional amount is calculated using a formula based on the employers’ share of NICs paid and is reviewed each year to see if it needs to be adjusted to reflect the shift in the ratio of SMP, OSPP, ASPP and SAP paid out and the employers’ NICs paid on these payments. As the employers’ NICs threshold for the 2011/12 tax year is rising from £110 to £136 per week, this means that from 6 April 2011, NICs are not payable on the £128.73 weekly standard rate of any relevant statutory payment, so employers will be paying less NICs on statutory payments. The change in the additional amount from 4.5% to 3% reflects this reduction in employers’ NIC payments.

And those employers who do not qualify for the small employers’ rate can still recover 92% of the SMP, OSPP, ASPP and SAP paid to their employees.

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information regarding the Payroll Statutory pay which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are below. In the meantime for more business information you can follow us on Facebook,Twitter and Linkedin

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,

Government Criticised for Lack of Action On Bribery

2011-02-14T02:58:00.000-08:00

The UK government’s decision to delay implementation of the landmark Bribery Act for the second time casts serious doubt on its commitment to combating corruption, say major aid agencies. The act will not come in to force until May 2011, at the earliest.

Passed with an all-party consensus in April 2010, the Act was supposed to be implemented last October, but was first shifted to April and is now delayed indefinitely.

The decision comes after the Ministry of Justice ordered a reassessment of the Act as part of the Growth Review, which is considering how the Government can create the best conditions for private sector growth. The Act, which received Royal Assent on 8 April 2010, aims to promote anti-bribery practices among businesses by introducing a corporate offence of failure to prevent bribery by persons working on behalf of a business. A business will have a defence if it can show that it had "adequate procedures" in place to prevent bribery. The penalty for the corporate offence is an unlimited fine.

"Bribery is neither the victimless crime nor the necessary evil that some UK companies may suggest," said George Boden of Global Witness.
He continued: "It cripples development and it’s bad for our long-term business interests. British companies should back their superior technical capacity with high ethical standards, not compete in a race to the bottom to see who can pay the largest bribes - which we would likely lose anyway."

Like any other law, this one is subject to judicial discretion and common sense when implemented. Companies will be allowed to continue to provide proportional hospitality to potential clients without fear of prosecution.

Arguments that the bill is too complex or stringent for businesses to implement do not bear scrutiny, say critics. The bill underwent extensive consultation with business and NGOs before being passed with support from the business sector. The Act was passed with cross party consensus, as a much-needed update to legislation dating back to 1906, which was roundly criticised by the OECD.

The Act will bring the UK into line with countries like the US, which already have robust legislation, and meet the recent call of the G20 for every member country to introduce legislation to combat bribery.

"Bribery is already illegal, but companies are operating under laws which are chronically outdated," said Mr Boden. "Since the Act was announced last April, we have seen a concerted campaign to get it watered down, but the argument remains clear and simple. Bribery destroys lives and damages UK interests – companies which do not pay bribes have nothing new to fear from the passage of this law."

The government must now give a clear timeline for implementation, including guidance for business, and stick to it, say the UK-based global aid agencies.

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are as follows:
In the meantime for more business information you can follow us on Facebook, twitter and Linkedin

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea

For Professional Payroll Services, Contact Citylights PPS now.

Essex Payroll News

2011-02-14T02:46:00.000-08:00

£4.5m military contract ensures jobs are secure

All you Citylights Payroll Services newsletter readers, here is some news which will definitely bring some smiles on your faces.

If sources are believed, a leading defence company based in Basildon is toasting a 4.5 million contract to supply specialist equipment to find enemy weapons. Selex Galileo which has manufacturing base at Sigma house, Christopher Martin Road said that the deal will help to secure jobs.

The order for undisclosed country is for two hostile artillery location systems, an acoustic location weapon locating system, called Halo which is capable of detecting sound waves generated by gun or mortar fire and other explosions. Selex hopes to expand its sites and is waiting for planning approval to develop an exhibition centre to show off its products.

Malcolm Buckley (Basildon Councillor) said, “This is yet another endorsement of high quality engineering and technology available in Basildon”. He further added “ it will help to secure jobs within the area. Whom the material is sold is not a big issue, as it is defensive rather than offensive equipment. There are various export controls determining what can or can’t be sold to various countries. It is welcome news and I hope it indicates we are entering the end of the recession”.

Whereas Colin Horner, company spokesman said, “Selex Galileo welcomes this contract, which recognises Halo’s position as a world leading acoustic weapon locating system. Halo, designed and manufactured at our Basildon site, is just one of the advanced technologies we are able to offer our customers around the world”.

However, Ann Kobayashi a resident said “I whole heartedly believe that profit should not be made from the sale of arms or other equipment”.

For Professional Payroll Services, contact Citylights PPS now.

New Phone Number For Employee Tax Enquries

2011-01-05T07:45:00.000-08:00

HM Revenues & Customs (HMRC) has announced that, there is now just one telephone number for employees to call for help with their tax enquiries - 0845 300 0627.
Employers can use this number too, for example if you need to confirm an employee’s tax code. But you should continue to call the Employer helpline for enquiries related to running your payroll.

The new number replaces more than 60 old numbers, which will shortly be ‘switched off’. In the meantime, it would be helpful if you could update any correspondence you send to your employees and perhaps your intranet/internet sites, so that references to ‘tax office’ quote only this new number.

If you need any information or you are confused by the latest step taken by HM Revenue & Customs which are mentioned above. Do not hesitate to get in touch with Citylights Professional Payroll Solutions Ltd, for your complete Payroll Services solution by email or phone call.
In the meantime for more business information you can follow us on Facebook, twitter and Linkedin.

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,
Essex, SS3 8BS

For Professional Payroll Services, contact Citylights PPC now.

Pension Age To Increase to 66 By 2020

2011-01-05T07:38:00.000-08:00

It is believed that more than a five million people will be forced to work later until retirement after the Coalition confirmed the increase in men’s and women’s pension ages.

The government planned to scrap the default retirement age in the UK. Now onwards, employers would not be allowed to dismiss staff because they had reached the age of 65.The pension age for men and women will be increased to 66 by 2020. Activist’s who long campaigned against the rule, welcome the proposal as a “victory” against ageism.

The announcement about this change was initially made in the Comprehensive Spending Review but has now received official confirmation. The state pension age for women was set to climb from 60 to 65 by 2020 and the state retirement age for women to 66 by 2026 under plans lay down by the previous government.

While it is minor change for men who currently retires at the age of 65. It is the major change for the women who will see their pension age increase by six years in 2020, from the current of level 60. The department of Work & Pension (DWP) said that the equalisation between the state retirement ages for men and women will be speeded up but from April 2016 at once. This shows us that, the new timetable will see the uniform level between the state retirement age for men & women will be sped up from April 2016 rather at once.

Steve Webb, the Minister of State for Pension said:
“We are living longer than ever before and it is important for government to take this in to account when developing policy.Although women will experience the rise in the state pension age more quickly than previously planned, they will still draw the state pension for longer, and our 'triple guarantee' means someone retiring today on a full basic state pension will receive £15,000 more over their retirement than they would have done under the old prices link.”.

The treasury predicts that the decision will save £30 billion between 2015 & 2025 through a reduction on spending on a state pension and pension benefits.
The Department of Work & Pension (DWP) further added that the decision means a total 4.9 million people in Great Britain will have their SPA revised. Those 4.4 million men and women will have an increase in their SPA of a year or less.
All you Citylights Professional Payroll Solution s newsletter readers, if you need any further information or you also which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are below.

In the meantime for more business information you can follow us on Facebook, twitter and Linkedin

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,
Essex SS3 8BS

For Professional Payroll Services, contact Citylights PPC now.

Use Of Taxcode "oT" - The Last Word

2011-01-05T07:23:00.000-08:00

In our last December newsletter, we mentioned about the HMRC instructions for what tax code an employer should used from 6th April 2011 onwards when a new employee does not have a form P45. HMRC issued an apology for an error is the guidance given in the latest notes for Payroll System Developers. Both in HMRCs correspondence with us and in the latest guidance for developers, we have been told that code 0T would be used, from April 2011, on accumulative basis where a new employee fails to complete a P46 before the first pay day. There is change in the instructions now and code 0T will be used. There are certain things every employer needs to understand which is as follows:

A new employee does not provide form P45 and does not complete form P46 before the first payday

Using HMRC’s online system or payroll systems that have online filling facilities, the employer must enter either A, B or C when indicating which P46 Box is checked-it cannot be left blank. Currently, where online services are used for filling, code BR is allocated automatically if Box C is checked. From April 2011, if Box C is checked, employer will allocate
• Code 0T (non cumulative) if no P46 has been completed before the first payday or the new employee has not ticked any box, or
• Code BR (cumulative) if the new employee has another job or receives a state or occupational pension.

A payment is made to a leaver after form P45 has been issued

HMRC’s guidance on termination payments is provided in the CWG2 Employer Further Guide to PAYE and NICs, on pages 15 and 99. The earlier page related to so called “standard payments” ,i.e. “salary or wages, holiday pay, week in hand payments, bonuses, arrears of pay and so on”. Guidance on the latter page applies to ‘additional one-off payments such as retirement, redundancy, lump sums and so on”, i.e. payments to which the £30,000 tax exemptions may apply.
However, in either case, the PAYE tax code procedure during 2010/11 is the same-if the tax termination P45 has already been issued to the employee; the payments are taxed using tax code BR on a non-cumulative basis.

From April 2011 onwards where a payment is made after form P45 has been issued, code 0T must be used on a non-cumulative basis. Such as following...
1. A former employee ( see CWG2pages 15 & 99)
2. The representative of a deceased employee, weather made in the tax year in which the employee died or in a later tax year ( see CWG2 page no.16)
3. A pension recipient in tax year later than the one in which the person died ( see CWG2 page 16)

An employer starts to pay a pension to an employee who remains in employment
Where an employee continues to work for an employer but, at the same time, starts to be paid an occupational pension by the employer, the current rules (CWG2 page 22) require the employer to advise HMRC using P46 (Pen) and, until HMRC sends a new coding notice, calculate tax using:
• The employee’s existing tax code for the wage or salary, and
• Code BR on a non-cumulative basis for the pension payments.
From April 2011, the employer must apply code 0T on a non-cumulative basis to the pension payments.

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,
Essex SS3 8BS

For Professional Payroll Services, contact Citylights PPC now.

CIS Scheme - 2011 Late Penalty Changes

2011-01-05T07:08:00.000-08:00

All contractors involved in the Construction Industry Scheme (CIS Scheme) must send a form CIS300 to the tax office by 19th of each month reporting payments made to subcontractors. If you haven’t paid subcontractors in a particular month you must still submit the form CIS300 showing nil payments, or ring the CIS helpline on 0845 366 7899. Failing to submit the CIS300 on time you will get £100 fines for each & every month (or part month) the form is late. Citylights Professional Payroll Solutions Ltd can help you appeal against these fines if you had a reasonable excuse for being late.

Penalties for late CIS contractor monthly returns will change from October 2011. In some cases the new penalties will be less than what would be charged now. In particular for new CIS contractors, there will be an upper limit to some of the penalties that are changed. is upper limit will apply when new contractors first send a monthly return, if that return and any other monthly returns that are sent at the same time, are late.

Although the new penalties do not start until October 2011, any contractors who has been, or is, charged penalties for filing a monthly return late before October 2011, may ask HMRC to:

• Work out how much the penalties will be under the new rules, and if, less than the amount already charged
• Agree that penalties should be reduced to the lesser amount.

As a reader, we can understand you must be having a lot of queries regarding this new development. Like....
Will the penalties under the new rules always be lower than they are now?
Answer:-No. Penalties under the new rules will not be lower in any case .The minimum penalty for each late monthly will return will remain £100. As mentioned above. The penalties may exceed any liabilities shown on the return. But, the penalty under the new rules may be lower if:

• You may have been charged more than one penalty in respect of any one monthly return
• You may have been charged more than £100 in respect of anyone monthly return
• You are new contractors who have been charged penalties for more than one late monthly payment return.

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you also are facing the same problems in the Construction Industry Schemes (CIS Scheme) or you are not aware of the recent developments occurring which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are as follows:
In the meantime for more business information you can follow us on Facebook, twitter and Linkedin

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solution Ltd
14 Fitzwarren,
Southend-on-sea,
Essex SS3 8BS

For Construction Industry Scheme Services, contact Citylights PPS now.

Tata Consultancy Services (TCS) Wants to Engage Employers and Payroll Providers

2010-12-07T07:46:00.000-08:00

As mentioned in our earlier newsletter of November 2010 you will be aware that the Government has made quite dramatic Pension Reforms to do with Automatic Enrolment Regulations. In addition, the Government has confirmed that NEST (National Employment Saving Trust) is fit for purpose and that Tata Consultancy Services (TCS) were awarded the contract to administer the NEST scheme. The most important aspect in making the administration as easy as possible for employers is the ability to automate as much as possible via payroll software. In light of this large task TCS has asked the IPP members for help. They are extremely focussed on ensuring that their products are suitable for payroll software and employer processes.

To provide assurance that they are providing a solution that will best meet the needs of employers wanting to use NEST, TCS are keen to engage both the employer market and also the payroll provider market to test their approach.

The Key Analysis
The TCS wants to achieve understanding in whether the payroll services or software that you use can support
· The creation of the report based on a set of data criteria provided by NEST i.e. specific data elements rather than a complete export of payroll items;
· The exporting of the report in a csv format;
· The exporting of that report in a .xml format;
· The transmission of the files through B2B services, using SSL protocols; and
· The transmission of the files through B2B services, using SSH protocol.

Steve Webb, Minister for Pensions said:

“I welcome this contract as the next significant milestone for workplace pension reforms and automatic enrolment. We are on track for delivery of the reforms from 2012. NEST will offer access to a good quality workplace pension scheme to many people who would not otherwise have the opportunity to save for their retirement.”

For professional payroll services, contact Citylights PPS now.

Payroll - Christmas Closure - Thanks Very Much

2010-12-06T01:52:00.000-08:00

Has it really been one year? Time really does fly in the world of Payroll.

Christmas time is just around the corner and all of us at Citylights would like to wish everybody who has supported us this year a very merry Christmas this holiday season.

Please note our closing times over this period and we look forward to interacting with you again in the coming year.

Merry Christmas and a Happy New Year to you all!

Citylights Professional Payroll Solutions Ltd

For professional payroll services, contact Citylight PPS now.

Payroll - P46 Changes For The Next Tax Year

2010-12-06T01:37:00.000-08:00

HM Revenue & Customs have confirmed that P46 starter forms will be changed for the year 2011/2012, so that employers can use code 0T when employers can tick a box C because they have more than a one job. It is one of the most long standing issues within payroll that the current method of using BR is not sufficient as it does not allow for the higher rate earners who need to be taxed at 40% or 50%. In most of the cases, this is the cause of the current PAYE fiasco whereby over a million people have underpaid on their tax.

The strangest thing about it is that this change still doesn’t cater for these higher rate tax payers. A 0T tax code means that there is no tax allowance, and the employee is taxed progressively at 20%, 40% and then 50% on their earnings. BR meant tax was deducted purely at 20%, so the change is a move in the right direction, but for those higher rate tax payers, it still means that they will owe tax at the end of the tax year.

As an example, if someone has a salary of £60000 in one job and is put on 0T in a second job where they earn a further £10000, they will pay £2000.00 in additional tax, whereas they should pay £4000.00. Taking the example further, if they earned £96000 in the first job and £48000 in the second job, this would result in tax deducted of £11720.00 instead of £19200.00, leaving £7480.00 unpaid.

So from April 2011, expect to see 0T become the query of choice for employees, who probably won't be fully aware of what it means! But you employers don’t need to bang your head against walls because Citylights Professional Payroll Solutions is there to help through each and every step.

If you need any further information or you are confused by the latest step taken by HM Revenue & Customs which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are as follows:

In the meantime for more business information you can follow us on Facebook, twitter and Linkedin

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,
Essex, SS3 8BS

For professional payroll services, contact Citylights PPC now.

Payroll - Absence through snow - do we have to pay employees?

2010-12-03T08:43:00.001-08:00

Rail, road and air passengers in England face another day of disruption bec ause of heavy snowfall. Hundreds of passengers in Essex spent hours on a train following li ne failures and more than 100 drivers in South Yorkshire were stranded for a second night. In the present situation which the UK is currently facing, many employers are in the dilemma with the question of TO PAY OR NOT TO PAY?

And like always there is huge debate with many opinions available. So, there are different ways to tackle this. There is no statutory (of relation to snowfall) rights, only a contractual right to pay. Always, Businesses should refer to contracts of employment before making a final decision. If an employee’s terms and condition are silent on a particular point then employers would revert to the general consensus of if the employee attends then you should pay them, if they do not attend work then you do not need to pay them.

If there is an absence of contractual right to pay this will obliviously cause some friction between employers and the employees who blame the weather which is making it difficult for them to get to the workplace and hence not getting paid also. Many companies will still pay their employees full pay despite their absence which shows clear disadvantage for the employer.

There can be alternative solutions for this problem, stating that they won’t be getting paid, but will allow the individual to take the time off as holiday. The other side of the coin by doing this means employees will end up having less holidays. For the employer this means better attendance and higher productivity during other times through the year. Although, when requiring employees to take holidays employers do need to provide appropriate notice defined as twice as many days as the duration of the leave of the employee. However, when faced with the option of no pay or taking holidays, many employees will often agree to take holidays.
There are two main key lessons to learn for many employers who have been caught short by the length and state of the recent snowfall.

First and foremost practice allowing employees to work from home. This can be done easily by asking them to use their PC and internet from home and communicate constantly via email. Employees can often deliver great results working from the comfort of their own home, despite there being such horrible weather condition outside.

Secondly, review your contract of employment. Most of the companies still do not have contracts in place or simply haven’t covered the eventuality of sustained absence from work through bad weather conditions. Companies who have given a thought about it and have their employment contracts in place clear and concise with their Terms and condition of employment can effectively manage these troublesome periods with a minimal damage to their revenue.

All you Citylights Professional Payroll Solutions newsletter readers, if you need any further information or you also are facing the same problems which are mentioned above. Do not hesitate to get in touch with us by emailing or call. Our contact details are as follows:
In the meantime for more business information you can follow us on Facebook, twitter and Linkedin.

Scott Muller
Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solution Ltd
14 Fitzwarren,
Southend-on-sea,
Essex, SS3 8BS

For professional payroll services contact Citylights PPS now.

Payroll 2012: Auto enrolment.... and the end of the world?

2010-11-04T04:45:00.000-07:00

Citylights Professional Payroll Solutions ltd presents the scope of the review which covers both the requirements for employers auto- enrol employees and contribute for them, and the role, if any, National Employment Saving Trust (NEST) should pay in helping employers comply with their new duties.

In his very first statement as a Chancellor of the Exchequer, George Osborne said few things about previous government’s pension reforms. The Labour Government introduced legislation to provide for the auto enrolment by employers of their employees into a suitable pension scheme funded by both employee and employer minimum contributions. Employees would have to opt-out if they did not want join a pension scheme. Those who did opt-out would be automatically re-enrolled after three years unless they once again opted-out.

There was to be a phased introduction of auto enrolment with the largest employers having to start auto enrolling employees from the autumn of 2012 with the smallest of employers brought into the scheme by September 2016. For those employers who do not already provide access to a suitable scheme, employees can be offered membership of an independent pension scheme to be known as the National Employment Savings Trust (NEST).

In a budget report there are two paragraphs suggested that improvement would go ahead as they were originally planned. In the first part reports states that “the government is supportive of auto enrolment” and in later part assured that “changes will be made to pension tax legislation in the finance bill introduced in the autumn to unable the National Employment saving Trust (NEST) to register as a pension scheme for tax purposes”.

When the Coalition Government came to power they stated their desire to review auto enrolment. The earnings threshold for auto enrolment will be aligned with the personal allowance for income tax (currently £125 a week, £540 a month). The earnings threshold at which pension contributions become payable will be aligned with the employee's primary threshold for the payment of Class 1 NICs (currently £110 a week, £476 a month) instead of at the lower earnings limit (currently £97 a week, £421 a month). Workers may opt in to saving and receive an employer contribution if they earn between the employee's primary threshold and the personal allowance for income tax.

There will be an optional "waiting period" of up to three months before a new employee needs to be automatically enrolled into a suitable pension scheme, although workers may choose to opt-in during this waiting period. Also; employers who offer employees a suitable occupational money purchase pension scheme will be offered a simpler means by which they can certify that their scheme meets the minimum contribution levels. Last but not least, the largest employers who are scheduled to be brought into auto enrolment in October and November 2012 will be allowed to automatically enrol ahead of the planned start date, by as early as July 2012 if they wish.
The Government statement also wholeheartedly puts its support behind NEST which it says is necessary to support the successful implementation of automatic enrolment. The Government is anxious for all small employers to be aware that the design of NEST specifically takes account of their needs and that easy access to NEST will be supported.

So, where does this leave us in the meantime?

The 2008 pension act, which contains the primary legislations for the reforms remains on the Statue books. Further, most of the detail for the original measures has been laid before parliament too; regulations were published in January and these still have full force. Also, the NEST corporations the trustee that will be responsible for NEST, has now been established and work to build the scheme itself is ongoing.

For those employers who do not already offer a pension scheme to their all employees, the eventual cost of pensioning the potentially automatically enrolled population could be significant. But many executives aren’t aware of their responsibilities under the plans, warns Malcolm Small, senior advisor at the pension policy and also yet many SMEs, especially micro enterprises, don’t offer pension schemes. So costs for managing payroll services are likely to rise for businesses. In addition, the administrative burden for complying will add to employers, workloads and their responsibility towards employees. The help of payroll services is must for employers in order to concentrate more on their hard core businesses rather than dwelling in to payslips and pension schemes of their employees.

We think about the seminal reforms which we described in this Citylights Professional Payroll Solution article of November in terms of a ‘journey’. At the end of the day pension landscape will look very different to how it looks now.

We hope that you have found our article on auto-enrolment instructive. In future edition we will keep you informed of important developments as and when did they happen. In the meantime for more business information you can follow us on social networking websites Facebook, Twitter and LinkedIn as Citylights Professional Payroll Solutions ltd.

We will be more than happy to receive your comments on this article, and then please do not hesitate to contact us:

Scott Muller

Managing Director
Tel 01702 584308
Fax 0844 556 1272
Email: scott@citylightspps.com
Citylights Professional Payroll Solutions Ltd
14 Fitzwarren,
Southend-on-sea,
Essex, SS3 8BS

Payroll - A Businesses Responsibility

2010-06-28T07:20:00.000-07:00

Payroll Employees a Businesses Responsibility

Citylights Professional Payroll Solutions are now supporting UK businesses with their Corporate Social Responsibility (CSR), a phenomenon taking place all over the world. At Citylights Payroll Services we realise the importance the role employer's play in society, a trend you would have seen grow in recent years, whether it be fair-trade goods in the supermarket or local businesses sponsoring local charities. The emphasis is very much on businesses being seen to be giving something back to society and contributing back to areas from where it has previously consumed from.

In line with the Responsible Business agenda and at a time when many are looking outward to see how their organisation is impacting on the environment and how they are perceived by the world, Citylight Payroll have put together a Responsible Business Package which is ultimately inward looking, focusing on the social well-being of the Payroll employees who drive businesses forward day after day, week after week, year after year.

As human beings we all must deal with the day to day rig murals that life throws our way and often we spend so much time working, stressing, getting to that next meeting that areas of life that we should make time for and that are really important, get left and sometimes forgotten. It's very common-place for individuals not even realising the essential necessity of some of these things, things as basic as having a Will for example.

Responsible Business Package

Our Responsible Business Package brings to your business and to your payroll employees, all the sorts of important areas people otherwise don't or can't make time for. Experts from our strategic partners will visit you as the employer at your premises and hold surgeries/workshops for groups of staff ranging from 5 to 50 and discuss issues such as debt, health, provisions for old age, wealth management, opportunities to shrink their household utility bills, there really is a plethora of help on offer to you and your staff and the best part about the service is that it is totally free to our customers.

We have begun introducing our Responsible Business Package to our customers over the past few weeks and the feedback received so far has been incredible. Customers so far have reported that they love the service and in numerous instances, businesses have had some real beneficial knock-on effects. It's been said that staff, since participating in the Responsible Business Package have seemed generally happier in their roles, communication amongst the differing levels in the business has improved and staff have really benefited from the knowledge being brought into their businesses with many joining the services being discussed.

The list of services memberships and discounts on offer within the Responsible Business Package is growing, and will be continually reviewed so to offer our customers and their employees the best possible experience. Currently our package accommodates the following:

Managing Your Wealth consists of free group surgeries, which can cover investments, retirement planning and protecting you and your estate.
Utilities Discount Club consists of free group surgeries, which can shrink the utility bills of your employees and that of your business by 30% (so far our most popular surgery with employees).
Company Health Checker is a paid for but discounted service through us, which provides each employee with a personal fitness receipt after their health assessment.
HR Documents Online, this is a new product which offers the kind of HR flexibility that would usually be out of reach for the average SME. Free demonstrations are available.
Making Money Simple, this is a free membership service available to all employers & employees saving them time and money when purchasing any and all financial products.
The Organisation for Responsible Business or ORB is offering membership at a 15% discount through Citylights. Membership has many benefits including a 24/7 legal advice line.

Over the coming weeks we should be including a Personal Debt Workshop and are in the process on creating a free employee confidential debt line.

If you're interested in what you have read and would be interested in the benefits of our Responsible Business Package. Contact scott@citylightspps.com or 01702 584308 or visit us at the Citylights Payroll Services & CIS Scheme website.

Payroll - Employee’s Pay

2010-06-22T07:00:00.000-07:00

Deciding the right rate of pay

Employers look at what the job entails, what competitors are offering for similar work roles and the abundance or lack of in the relevant skills. For new businesses this process is more straightforward but for established employers, it is slightly more complex.

Existing employees set a precedent with their pay rates and therefore creates less flexibility to agree a pay rate different from one already given to current employees in the same or similar job roles.

Established employers recruiting new staff, does provide an opportunity to review pay rates generally. It is not always simple to stick to the rates currently being paid to existing employees, as external factors, such as shortages of skills in specific areas, can have an effect on rates of pay. Employers unaware of this issue can face difficulties in recruiting new employees, but may also suffer when current employees become attracted by higher rates of pay elsewhere.

An employer must decide where they want to position the business and the rates of pay being offered. To attract the best employees, employers may wish to pay a ‘top of the market’ rate. At the other end of the scale, employers who are unwilling or unable to pay premium rates may have to compromise on the calibre of employees they recruit.

The law requires employers to pay a fair and equal rate of pay for equal jobs, regardless of who is doing them. The National Minimum Wage is a standard minimum amount prescribed by law and is the lowest amount an employer is allowed to pay to any employee.

There are three rates of the National Minimum Wage in force from 1st October 2009.

 £5.80 per hour, for those aged 22 or more
 £4.83 per hour, for those aged 18 – 21 inclusive
Apprentices aged 19 and above qualify for the National Minimum Wage after the first 12 months of their apprenticeship.
 £3.57 per hour for 16 and 17 year olds (above compulsory school leaving age)

16 and 17 year old apprentices are not entitled to this rate.
The minimum wage figures are reviewed and updated regularly by the government. Failure to pay the minimum rate is a criminal offence.

What the Law says
There are key regulations that you should be familiar with, which lay down rules regarding how much you pay your workforce, as follows:-

 National Minimum Wage – minimum rates you can pay your employees.
 Equal Pay Act – states how men and women are to be paid an equal rate for the same and similar roles.
 Part-time Workers Regulations – part-time workers doing the same or similar jobs as their full time colleagues should be paid the same rates based on the number of hours worked pro rata.
 Fixed-term Regulations –fixed-term employees total pay package must be the equivalent to that paid to comparable permanent employees in monetary terms.
 Employment Equality (Age) Regulations 2006 – discrimination on the grounds of age is unlawful. Pay and benefits schemes, are potentially discriminatory on the grounds of age if based on the length of service.

Limiting pay and/or benefits schemes to 5 years’ service would enable employers to operate fairly. Reward schemes based on length of service of more than 5 years must be objectively justified.

Under HM Revenue and Customs rules, employers have other legal duties regarding pay such as the deductions of tax and NI. These deductions must be paid directly to HM Revenue and Customs on behalf of the employee. The employer is then required to provide each employee with a written statement or payslip at the time of paying staff to indicate the gross pay, deductions of tax and National Insurance, fixed deductions (e.g. loan repayments or Trade Union subs) and net pay total.

Only in certain circumstances are employers entitled to make other deductions from pay:-

 Where written authorisation from the employee has been given prior
 If employee’s contract of employment has a clause that allows the employer to make deductions
 A Court order, e.g. an attachment of earnings order

Our advice to you.

An employee’s pay rate is a term of employment which by law must be specified in the terms and conditions of the written statement of employment, given to employees within their first 2 months of starting. When an employee receives a pay rise or is promoted or a change in role occurs, the pay rate may be renegotiated.

Individual employees can undertake very different roles from one another and therefore require different pay rates. However, when a number of employees perform the same or similar roles, pay should be made on an equal terms. To pay different rates to different people based on gender or employment status is discrimination and unlawful. There are some important age exceptions to this provision as described above.

Regularly review your rates of pay to help you attract and retain good employees. It will ensure that differences do not arise in the rates given to employees doing the same or similar jobs or highlight areas where this has occurred. There are circumstances where differences in pay rates legitimately do occur, e.g. where an employee’s job role demands a higher level of skill or competency. In these instances, make sure you can justify the differences in pay. Reasons for pay differences must be objective, measurable and noted down, helping you avoid potential claims of discrimination. You must be able to demonstrate that the differences are due to reasons other than age or gender.

Payroll services by Citylights Outsourced Payroll Services

(SMP) Maternity pay and leave

2010-05-28T08:14:00.000-07:00

A guide to Statutory Maternity Pay (SMP) from Citylights Payroll Services

An employee must have been employed continuously for at least 26 weeks (despite the number of hours worked) ending with the 15th week before the expected week of childbirth (EWC), with weekly average earnings above the National Insurance threshold to qualify for SMP. This 15th week is known as the qualifying week (QW). For 39 weeks during the employee’s maternity leave the employer pays SMP, as long as the employee is not at work.

Employees on maternity leave are able to agree with their employer to work for up to ten ‘keeping in touch’ days, without bringing their period of leave to an end or losing their right to Statutory Maternity Pay (SMP). ‘Keeping in touch’ days, which can be for training or briefing sessions, must be arranged by agreement between the employer and the employee. Employers do not have the right to insist that employees undertake any work during their maternity leave and employees do not have the right to be offered any such work.

From 4th April 2010, the standard rate of statutory maternity pay is 90% of average weekly earnings for the first six weeks of maternity leave and then £124.88 per week (or 90% of average earnings if this is less than £124.88) for the next 33 weeks.

A set period is used to calculated average weekly earnings:
 The last pay day before the Saturday at the end of the qualifying week; and
 The last pay day at least eight weeks before that date.

Woman entitled to a pay rise, effective during the maternity leave, must be taken into account when calculating the average earnings entitlement on which her first six weeks’ SMP is based.

A pay rise given towards the end of a woman’s maternity leave, means the employer must recalculate her first six weeks’ maternity pay, making a back dated payment to reflect the increase.

If an employee does not qualify for SMP she should be issued with a form SMP1 and advised to contact Jobcentre Plus. Jobcentre Plus will then determine whether she is entitled to Maternity Allowance.

Maternity leave

All pregnant employees, regardless of hours worked or length of service, are entitled to 26 weeks’ ordinary maternity leave followed by 26 weeks’ additional maternity leave.

Notification must be given by the employee to her employer by the 15th week before the baby is due:

 That she is pregnant;
 Her EWC
 The date on which she intends to start her maternity leave.

Passing form Mat B1on to the employer will fulfil some of the notification requirements. This is obtainable from the employee’s doctor or midwife and should provide confirmation of the pregnancy and the date the baby is due.

The employee can change her mind about the date on which she wants her maternity leave to start, provided she gives her employer 28 days’ notice (unless this is not reasonably practicable).

The employer should respond in writing within 28 days of the employee’s notification, confirming the employee’s expected date of return to work.

Maternity leave will start automatically:

 Four weeks before the baby is due, if she is off work due to a pregnancy related illness; or
 The day after the baby is born, if she has not yet started her maternity leave.

The contract of employment continues during ordinary and additional maternity leave. Entitlements to benefits should continue for the employee, so therefore should receive all non-pay contractual benefits, such as a company car or membership of a private health insurance scheme, for the whole of her maternity leave. Benefits based on length of service, such as holiday entitlement or pay increments must be taken into account.

Employees intending to return to work on the due date, do not have to give the employer any further notification. If the employee wishes to return to work earlier than the end of her additional maternity leave period, eight weeks' notice must be given. If, after notifying the employer of an early return date, the employee changes her mind and decides to return on an earlier date, she must give the employer eight weeks notice of the new return date.

Employees returning after ordinary maternity leave are entitled to return to the same job. Employees who return after additional maternity leave are also entitled to return to the same job or, if this is not reasonably practicable, an alternative job on terms no less favourable than the terms of her original job which is suitable.

Employees with 26 weeks service or more, who have children aged sixteen or under or disabled children under the age of 18, have the right to request flexible working. Employers must follow a statutory procedure when dealing with such requests and are only allowed to reject an application on one or more of eight permissible grounds. A refusal to allow an employee returning from maternity leave to work on a part-time basis might also be construed as sex discrimination. All such requests should therefore be given very careful consideration.

For more information on Payroll Services please contact Citylights PPS

What falls within the scope of CIS?

2010-05-11T07:00:00.000-07:00

I was asked today by a new business owner whether the work they do falls within the scope of CIS. The business in question, were a Facilities Management company, looking to outsource the ongoing maintenance and refurbishment, in some instances, of high street retail stores to various subcontractors. The business in question was relatively new and the Directors were unsure whether they were obliged to participate in conjunction with the CIS rules or not.

As they did not know, you may not know, so hopefully this will help clear things up.

What types of work are covered by the CIS scheme?

The Scheme covers all construction work carried out within the UK up to the 12 mile limit of UK territorial waters, including jobs such as.

Site preparation

Alterations
Dismantling
Construction
Repairs
Decorating
Demolition

A contractor is a business or other concern that pays subcontractors for construction work. Under the Scheme, there are two groups of contractor:

1. Mainstream Contractors – Businesses that include construction operations, property developers, builders altering or erecting buildings

2. Deemed Contractors – Public bodies and other concerns who carry out /commission construction work exceeding annual spends of £1 million. Examples could be Retailers, banks, local authorities etc.

Businesses and Individuals that are NOT contractors under the scheme

The following are not deemed contractors under the scheme.

1. Ordinary householders – new house building, decoration, repairs and or extensions.

2. Businesses operating outside of construction whose average annual spend on construction work is less than £1 million annually over the last 3 years.

Exceptions to the Scheme for contractors

Under the scheme, businesses and other concerns that are otherwise mainstream or deemed contractors may not need to apply the Scheme for certain types of work. Typically as follows:

Expenditure incurred by a business on their own property. A business not classified as a mainstream contractor but do spend in excess of £1 million on construction, need not apply the scheme when expenditure relates to the property used for the purposes of the business.

The types of properties this exception covers include:

Offices
Nursing homes
Warehouses
Leased property used by the business or its group.
Other facilities used for the business
Authorisation not to apply the Scheme

If you feel that the work in which you are engaging in should fall outside of the Scheme contact this number 0845 366 7899 and request authorisation not to apply the Scheme. You will be required to provide the following.

1. The construction work to be done

2. Who will be doing the work
3. Where the work will be done
4. The cost of the work

Small Payments

Construction operations amounting to less than £1000, excluding material costs can be authorised again to be exempt from the scheme, however this arrangement does not apply to mainstream contractors.

If authorisation has been granted for Small payment exemption prior to 6 April 2007, re-applying is not necessary if circumstances remain the same under the current Scheme.

Full Information on the Construction Industry Scheme can be found @ CIS340. Alternatively advise can also be obtained from the CIS Scheme Helpline 0845 366 7899.

If you would like outsourced assistance in the operation and compliance with the Scheme visit us @ Citylights CIS Scheme Services or email scott@citylightspps.com

National insurance or NI Information

2010-05-06T09:32:00.000-07:00

What’s National Insurance?

National insurance (NI) is a kind of government insurance which helps pay for benefits which you receive when, for example, you're ill. It helps pay for your State Retirement Pension also.

Most UK workers have to pay NI contributions from their earnings. Employee’s pay Class 1 contributions, taken straight from wages, along with income tax, and paid to the government by the employer. Employers also pay contributions.

Self employed individuals if profits are high enough, pay Class 2 contributions. They are responsible for paying their own contributions direct to the government. To pay national insurance contributions, individuals must have a national insurance number (NINO). Paying NI contributions in the UK may help build up entitlement to benefits in other European countries.

Who has to pay NI?

You must pay National Insurance if you're working in the UK and you're between 16 and 60 years old (if you're a woman) or 16 and 65 (if you're a man). Earnings must be more than a certain amount fixed by the government which usually changes annually each April.

By 2020 the government is changing the law so that women will pay NI up until the age of 65 equalising the state pension age between men and women. Woman born between 1950 and 1955 are affected by the gradual transition. There is a calculator to help you work out what your state pension age will be on the Directgov website at: http://www.direct.gov.uk/.

How much NI do you have to pay?

Class 1 contributions, are calculated as percentage of your wages and changes according to how much you earn.

Being self-employed, you pay class 2 contributions which are a flat rate. If you earn very little, you can apply for an exception, however profits above a certain amount will mean you'll have to pay additional National Insurance contributions after the end of the tax year. These contributions, called Class 4 contributions, are based on your taxable profits.

How to get a NI number

You need to be interviewed to get a national insurance number and can telephone 0845 600 0643 to arrange this or, you can ask for help at your local Jobcentre Plus office.

At the interview, you'll need to prove who you are (your identity) and that you have the right to work in the UK. Take along your passport and any other documents which prove your identity. These can include a national identity card, a birth certificate or a driving licence. The documents must be originals.

This information was provided by Citylights PPS, speciallists in Managed Payroll Processing and CIS Scheme services.

Payroll – processing final payments for leavers

2010-04-30T08:20:00.000-07:00

Employers must process final payments for employees from time to time when leaving their businesses. These payments must be processed through the company payroll. Reasons for leaving could be as a result of:-

Redundancy
Retirement
Ill Health
Job Change
Dismissal (with or without notice)

It’s important to ensure that a final payroll payment is processed accurately. Mistakes will be difficult to rectify with overpayments being very difficult to reclaim. Employee’s move on and can be unwilling to co-operate. These situations can revert to legal action in an attempt to recover the money. This course of action will inevitably lead to additional costs. Dependent on the money involved, it may not be cost effective to take such measures and many companies learn the hard way the importance of calculating final payments accurately.

Resigning employees and those who have been dismissed, but work their notice periods, can make the final payments pretty straightforward and reasonably easy to calculate. They typically include a salary payment for the time worked up to and including the last day, plus any bonus payment or expense payment due and payment for any holidays which have been accrued during the company’s holiday year but not taken. Final payments become more complex when:-

A payment is made in lieu of notice. In this situation, the question arises as to whether the in lieu payment is taxable or tax free. There are complex HM Revenue and Customs rules covering this issue. Before making a tax free payment, seek the advice of a specialist or approval from HM Revenue and Customs.
An employee is being made redundant and a redundancy payment is being made. Make sure that any redundancy payment is calculated accurately, using the up to date figure for statutory redundancy pay.
There is a compromise agreement. Take Employment Law Support when drawing up a compromise agreement and ensure that any payments made under the agreement are treated correctly for tax purposes.
Your company’s rules for calculating and paying accrued holiday pay differ from the minimum statutory entitlement prescribed by the Working Time Regulations. Your employee will be entitled to accrued holiday pay in accordance with his/her contract of employment or the statutory minimum, whichever is the greater.

Final payments are usually processed at the same time as a normal payroll run. However, some employers do elect to process final payments separately, so that the leaver receives final payment and P45 on their official date of leaving. This is a matter of personal choice and may be determined by the way in which a company processes its payroll.

What to include in the final calculation

Depending on the reason for the termination an employee’s final payment may contain a number of different calculated amounts. The following must be considered when calculating final payments and the appropriate items included in the final calculation:-

Final salary payment – up to the last day worked.
Pay in lieu of notice – ensure correct tax treatment.
Outstanding holiday pay – ensure compliance with the Working Time Regulations.
Bonuses due – check the contract of employment for the employee’s entitlement.
Expenses due.
Redundancy payments – calculate accurately and confirm the calculation in writing.
Payments due under compromise agreements – ensure the correct tax treatment.
Tax deductions.
NI deductions.

Any amounts which need to be repaid to the company, for example expense “floats”,

For more information on Payroll Services or if you would like to enquire about outsourcing your Payroll please contct Citylights PPS Ltd.

Payroll; to outsource or not to outsource?

2010-04-30T01:59:00.000-07:00

Outsourcing your payroll or Payroll software what’s best for you?
All businesses at some point, irrespective of their size, poise this question and tried to deal with the reality of the answer.

Many businesses feel that the right option is to invest in payroll software and staff to manage the payroll in house, but many others feel that the better option is to outsource their payroll.

What are the key considerations?

Time: Does your business have the expertise and time to take focus away from the business so to deal with payroll weekly or monthly? Payroll is a task that peaks and troughs throughout the month – will filling this role internally be cost effective for your business?

Confidentiality: Payroll processing is a sensitive subject within a business – indiscretion can cause huge upset – Be sure that sensitive information is kept confidential?

Reliability: Staff will require payment on time, every time. The payroll must be accurate and must be processed when it is due regardless of holiday, sickness or any other unforeseen circumstances.

Cost: While it may be advantageous to have employed staff available ‘on tap’ as it were running payroll, there are costs involved in staffing this role you must first consider for example holiday/sickness/maternity/paternity, on going training costs etc as payroll is an area that is guaranteed to have annual legislative changes and not forgetting the cost of the payroll software, support and annual updates.

Flexibility: Changes may need to be made to payroll at any time – will the in house resource always be available to make last minute changes?

Take your time to work out what solution suits you and your business the best. Different businesses have different needs, but if you feel that payroll outsourcing is your preferred option, contact us at Citylights Professional Payroll Solutions Ltd, where we can also support your HR functions.

Need Payroll Services? Think Citylights!

Employment Law - Why It Matters

2010-04-20T08:32:00.000-07:00

Findings of a Business Link survey recently revealed that two thirds of SMEs are failing to implement employment laws.

Three reasons were highlighted why:

• A quarter didn’t think it was their job to implement the law.

• A fifth weren’t sure how to do it.

• As employers a third simply didn’t know what their legal obligations were.

Our customers agree that expert HR advice helps them avoid employment law pitfalls and takes the pressure off them, but so many businesses struggle to meet their legal obligations.

How can failing to implement employment laws affect your business?

The entire employment cycle is governed by legislation from the initial recruitment process through to employees leaving your business. For example, there are employment laws concerning:

• Pre-employment residency and police checks.

• Discrimination, from the wording of your job advertisement through to employment practices.

• Grievance procedures, if an employee has a complaint.

• Retirement and redundancy.

Simply being unaware of your human resources responsibilities is no defense. In fact failing to comply with the law could have serious consequences for your business:

• Time consuming and stressful employment tribunals.
• The financial burden on your business of paying out fines and compensation.
• Lost customers as a result of a damaged business reputation.

Stay on top of employment law, what can you do?

A lot of businesses are concerned that staying legally compliant is too time consuming and holds them back from managing and growing their business. But it really is simply a case of putting the correct procedures in place now, making it easier for you to implement the regulations, and protecting your business for the future.

To start, consider if you have documented processes around:

• Confirming employee’s entitlement to work in the UK, by checking and copying certain original documents.
• Providing compliant contracts of employment, no later than two months after the employee starts work.
• Adhering to the national minimum wage, the minimum level of pay allowed by law to most workers over the age of 16.
• Creating and distributing your staff handbook, providing your employees with valuable policies and procedures.
• Providing equal opportunity recruitment, by objectively matching the criteria of the job specification to the competencies, qualifications and skills of each applicant.
• Successfully managing poor performers legally, fairly and consistently, by having a structured process in place.
• Sensitively handling grievances, providing structured informal and formal avenues of communication.
• Having a clear retirement policy to provide consistency and clarity to leavers.

It really is worth setting some time aside now to help save yourself time and hassle in the future.

Citylights Professional Payroll Solutions Ltd offer a Free customer HR support, working with you to keep you compliant with your responsibilities.

Payroll Services, CIS Scheme, Managed Payroll Processing Services from Citylights PPS Ltd

Small and Micro Employer Payroll information

2010-04-16T02:43:00.000-07:00

Citylights also provide managed payroll solutions for small and micro businesses, if you would to know more about Citylights Payroll Services please see our website.

Information for small employers

This article is for people who employ one or more people but fewer than five. If you have fewer than five people working for you, you are known as a micro employer. If you pay someone to work in a shop, if someone works in your home or some other place of work, a nanny, a carer, a cleaner a personal assistant, you are classified as a micro employer

How do I know if I'm an employer

It's very important to know whether you're an employer because you'll have legal responsibilities towards the people who work for you. They'll be your employees and you'll have to make sure that they get certain rights such as sick pay and holiday pay. You may also have to register for income tax and national insurance contributions.

Employers will have a contract of employment with employees even if this is not written. This will include whatever you the employee have agreed. A written contract is best so both parties are clear about rights and responsibilities. A written statement of main terms and conditions should also be presented within two months of starting work. Both employer and employee must stick to the terms and conditions agreed upon.

Some people you pay to do work might not classed as employees. They may be self-employed, work for an agency, or only work on a very casual basis. A contract of employment is not necessary in this instance and won't carry the same legal responsibilities.

How to tell if someone is your employee

Someone is likely to be your employee if one or more of the following applies:

you find work for them and can tell them what to do and how to do it, even if they are left alone to do the work
you pay them a regular amount of money on a weekly or monthly basis rather than when they have done a particular job
you have to find someone else to do the work if they can't do it for some reason, for example they're off sick. But if they have to find someone else to do the work, for example a sub-contractor or a friend, this probably means they're self-employed
You're responsible for providing most of the tools, machinery and material to do the work.

Carers

A carer provides personal care and support in your home, usually because you're sick, disabled, or have a mental health problem. They might help you with cleaning, cooking, shopping or personal care such as washing and getting dressed. A carer can either be paid or unpaid.

If you have a carer, you won't be their employer if they aren't paid for their work. This type of carer will often be a family member, friend or neighbour.

If your carer is paid, they may be employed directly by you, by your local authority or by an agency.

You may be your carer's employer if you have to find work for them and can tell them what to do and how to do it. You may also be their employer if you pay them directly for their work, even if you've been given money by your local authority to pay them.

It can be very difficult to work out whether a carer is employed by you, a local authority or an agency. If you aren't sure whether you're the employer, you should get advice.

Domestic workers

A domestic worker is someone employed to work in your home and carry out household tasks such as cleaning, cooking and washing. Domestic workers include cooks and housekeepers.

If the person does paid work only for you, they are likely to be your employee. However, they could still be your employee even if they work for other people as well as you.

If you have a cleaner, they may be your employee, but they could also be self-employed, work for you on a casual basis or work for an agency.

If you have a gardener, it's unlikely that they'll be your employee, unless they work only for you.

Domestic workers aren't protected by the same health and safety laws as other employees. There is no limit on the number of hours they can work, but they are entitled to have set rest breaks on a weekly and daily basis.

Nannies, au pairs and child minders

If you have a nanny, they will probably be your employee, though they may be self-employed if they work for a number of different households. If you found your nanny through an agency, they may be the employee of the agency rather than your employee. This will depend on who is responsible for telling them what work to do.

An au pair is someone who lives in the family home and helps out with household tasks and child-care on a part-time basis in return for board, lodging and pocket money.

What responsibilities do you have as an employer?

If you're a micro-employer, you generally have the same legal responsibilities as other employers. This means you must:

not dismiss your employee for an unfair reason
make sure your employee gets the sick pay they're entitled to
make sure your employee gets the rights they're entitled to for maternity, paternity and adoption
give your employee 28 days paid holiday a year, if they work full-time. If they work part-time, they are entitled to a pro-rata amount of paid leave
not discriminate against your employee because of their race, sex, disability, sexuality, religion, belief or age
make reasonable adjustments to your home or workplace to allow a disabled employee to do their work
follow health and safety at work regulations. This means you're responsible for the health, safety and welfare of your employee
have employers’ liability insurance to cover your if your employee is injured while working for you
pay your employee the national minimum wage.
limit the average working week of your employee to 48 hours, unless they have agreed in writing to work longer than this. This limit doesn't apply to domestic workers in a private household
make sure your employee has the right to work in the UK before they start work as it's a criminal offence to employ someone who doesn't have the right to work legally in the UK.

For more information, visit the Home Office website at: www.ind.homeoffice.gov.uk/lawandpolicy/preventingillegalworking/ or ring their employer's helpline on 0845 010 66707.

Employee’s working with children or vulnerable adults, need to be checked through the Criminal Records Bureau (CRB) or in Scotland through Disclosure Scotland. For more information, go to http://www.crb.gov.uk/ or contact the CRB Information Line on 0870 9090811. In Scotland, go to www.disclosurescotland.co.uk or contact the helpline on 0870 609.

Tax and National Insurance Responsibilities

Paying employee’s more than £110 a week the earnings threshold means you must:

be registered as an employer with HM Revenue and Customs (HMRC)
operate Pay As You Earn (PAYE), deducting income tax and Class 1 national insurance contributions from the employee’s pay and send it to HMRC
keep records of deductions and send details to HMRC every year
provide a written payslip each pay-day, showing gross pay and how much has been deducted for tax and national insurance.

You are responsible for making the right deductions in calculating the employee’s pay for tax and national insurance.

It is illegal to pay employees cash in hand’ to avoid paying tax and national insurance.

To find out more, contact Citylights Professional Payroll Solutions Ltd (http://www.citylightspps.com/) email us info@citylightspps.com or call 01702 584308

Citylights PPS News - Supporting Our Customers with Human Resource Management and Employment Law

2010-04-12T04:13:00.000-07:00

I’m really excited to inform you that we have just secured an affiliation to support our customers with Human Resource Management and Employment Law issues which arise in their businesses.
The service which will be set to go live over the coming weeks will be at no additional cost to the customer in fact it will be a Free Service which will enable them to keep one step ahead of the game.

This is a customer only Free Human Resource (HR) and Employment Law Support Service which bolts on to the Payroll and/or CIS Services we all manage for our clients. Of course new customers will also be able to benefit from the service, even during their initial 30 Day Free Trial. We anticipate that this will become an invaluable tool for many of our small and medium sized customers as any issues they have relating to HR and Employment Law will be dealt with swiftly accurately and will keep them in control.

We shall be using our website as a platform were customers will be able to input a question with their accompanying contact information and a qualified team member from our associates at Practical HR will send an email response back within 24 hours.

As issues surrounding human resources and employment law, are often complex, an email response will not always suffice, in these instances a call back will be made so a customer will receive the best possible answer to the question they have posed. Furthermore a Free 30 minute face to face consultation will also be made available on appointment if this was felt necessary.

Additional HR consultancy services such as on-site support, drafting and implementation of contracts of employment, employee handbooks and other employment documentation; and/or reviewing and/or setting up your HR systems and procedures or providing support to managers etc would become chargeable works, and would be discussed openly with you well before work would begin.

If you would like to find out more about our great Payroll Services and / or CIS Services or our many other customer benefits please give us a call on 01702 584308, forward an email to info@citylightspps.com or just visit our website @ http://www.citylightspps.com/.

'Payroll’ The Effects of The Pre-Budget Report 2010

2010-03-29T02:20:00.000-07:00

Following the Pre-budget Report (PBR) on Wednesday 24th March2010 I wanted to cherry pick the areas covered by the PBR that would specifically effect Employers, Employees and Payroll Management generally.

Please view below a break down of these areas affected by the Chancellors report and a link to HMRC’s website and the main budget report if you wished to read on for further details and depth.

Income tax Allowances

Budget 2010 confirms the Pre-Budget Report 2009 announcement of the income tax rates and personal allowances for 2010-11:

• the basic rate will remain at 20%

• and higher rate will remain at 40%

• the additional rate will be set at 50%

• the basic rate limit will remain at £37,400

• the starting rate limit for savings will remain at £2,440

• the personal allowances will remain at their 2009-10 amounts

Income tax Rates

Tax thresholds for 2010/11 at which rate is imposed have been frozen at the 2009/10 levels. This introduces a subtle tax increase for those people whose income has increased, if that increase takes their taxable income over one of the tax thresholds.

Savings rate* - 10% - £0 - £2,440

Basic rate - 20% - £0 - £37,400
Higher rate - 40% - £37,401 to £150,000
Additional rate - 50% - Over £150,000

The 50% tax rate only applies on income over £150,000, it does not replace the 40% tax rate.

Security for PAYE

Currently the owners or directors of a new business may be asked to provide a lump sum to HMRC as security before the business is permitted to become VAT registered. The Tax Office tends to demand such payments where the business owners have previously been involved in a business that failed owing VAT. From 6 April 2011 HMRC will also be able to ask for security payments from the business owners before the business is permitted to operate a PAYE scheme.

NICs Rates and Thresholds

Amounts announced at PBR 2009 are confirmed at Budget 2010. All NICs rates and thresholds are unchanged from the current year 2009/10, with just 2 exceptions for 2010/11 as follows:

• the Lower Earnings Limit (LEL) which is linked to the basic State Pension will increase by £2 from £95 per week to £97 per week
• the special Class 2 rate for Volunteer Development Workers will increase by 10p from £4.75 per week to £4.85 per week, because this is linked to the LEL

Arrears of Tax - Business Payment Support Service

The Business Payment Support Service (BPSS) - giving people access to request time to pay their tax is to continue. The service is available for all HMRC taxes, including VAT, Corporation Tax, Income Tax, NICs and PAYE.

Bank Payroll Tax

Following the announcement in the 2009 Pre-Budget Report (PBR), legislation in the Finance Bill 2010 will introduce the bank payroll tax. The tax applies, broadly, to banks and building societies on awards of bonuses over £25,000 made to, or in respect of, certain types of employees in the period from 9 December 2009 to 5 April 2010. It will be chargeable at a rate of 50% There will be no change in the tax treatment of bonuses received by individuals.

Expenses and Benefits

Company Car Tax - Changes April 2012

New CO2 gm/km emissions limits set the appropriate percentage for computing company car tax benefit. The current graduated table of company car tax bands will be extended down to a new 10% band, and all CO2 emissions thresholds will be moved down by 5gm/km on 6 April 2012 so that the 10% band will apply to company cars with CO2 emissions up to 99gm/km.

Company Cars and Vans - Zero Emission vehicles and benefit charge

This measure introduces two changes effective for five years from 6 April 2010 to 5 April 2015 to the chargeable benefit in kind on company cars and vans:

• the first change is full relief from the chargeable benefit in kind on company cars and vans which cannot produce more than 0gm per km CO2 engine emissions under any circumstances when driven
• the second change reduces the chargeable benefit in kind on company cars which have an approved CO2 emissions figure of exactly 75g gm/km or less

Employer Supported Childcare Vouchers - "available to all" rule

A relaxation will be made to the conditions applicable to childcare vouchers and directly contracted childcare schemes delivered through salary sacrifice arrangements, for those employees at or near the National Minimum Wage (NMW).

Child Tax Credit Element

The government is increasing the child element for those families with children aged one or two from April 2012 by £4 per week.

Working Tax Credits for the over 60s

From 6 April 2011, people aged 60 and over will qualify for Working Tax Credits if they work at least 16 hours a week. Currently those aged 60 and over qualify for Working Tax Credits if:

• they work 30 hours or more a week
• they work 16 hours or more a week and they have dependent children, or qualify for the disability element
• or they work 16 hours or more and they are returning to work after being on certain benefits for six months or more (only available to the over 50s)

Working Tax Credits - Access to Disability Element

The government will improve access to the Working Tax Credit disability element for those who have been claiming the Employment and Support Allowance (ESA). From 6 April 2011, ESA customers who have a "limited capability for work" and leave ESA to move into work for at least 16 hours a week with the help of WTC, will automatically pass the disadvantage test and qualify for the disability element of WTC.

Tax Credits, Child Benefit, Guardian’s allowance rates and Thresholds for 2010-11

As announced at the 2009 Pre-Budget Report and confirmed at Budget on 24 March 2010, from 6 April 2010:

• the Child element in Child Tax Credit will increase by £20 above earnings indexation to £2300 per year. An increase of £65 per year overall
• the disabled elements of Child Tax Credit will increase by 1.5%
• the elements of the Working Tax Credit (except the childcare element) will increase by 1.5%
• maximum amounts for child care, family and baby element for Child Tax Credit, the income disregard, the first and second tax credit threshold and the withdrawal rates remain unchanged
• the income threshold for those on child tax credit only rises to £16,190

From 12 April 2010:

• Child Benefit rates and Guardians Allowance will increase by 1.5%

For more information on Payroll Services or if you have questions about Payroll Management in general please contact me at my website http://www.citylightspps.com/.

2010-03-19T08:43:00.000-07:00

Benefits of Outsourcing your Payroll Services

Providing employees with their pay on time and without error is a critical aspect of your business. Payroll is one of the most visible business processes to your employees so a solution that is accurate, efficient, and right for your particular business is essential. The right payroll solution can help you contain costs and ensure compliance. Accurate, timely payroll is in fact so fundamental to employee satisfaction that often it is taken for granted.

Selecting an appropriate solution for your business can seem a difficult task. Options include outsourcing your payroll to a payroll service, processing payroll using in-house payroll software, or blending components of both. By choosing the appropriate payroll solution, you can boost efficiency, reduce costs, and better manage the payroll process, all of which can contribute to your bottom line in a positive way.

Not many businesses however thoroughly understand the benefits of payroll outsourcing. It's true that outsourcing can save money, but that's not the only (or even the most important) reason to do it Outsourced payroll offers several benefits for businesses of all sizes. If you’ve outsourced other functions, like telemarketing, website design, or printing services, you know how valuable it can be to have an expert working on your behalf. By hiring a professional, you can avoid costly mistakes, protecting your business, and free up time to do what you do best, managing your business.

Control capital costs: Cost-cutting may not be the only reason to outsource, but it's certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business. Outsourcing can also make your business more attractive to investors, since you're able to pump more capital directly into revenue-producing activities.

Reduce risk: Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Outsourcing providers assume and manage this risk for you, and they generally are much better placed to avoid risk in their area of expertise.

Reduce People Management Issues: Advertising/recruiting, interviewing, hiring, training and managing an in-house employee or team, takes time and money. Outsourcing removes these issues so you don't have to worry about staff turnover or losing a trained team member which can impact the effectiveness of your entire accounting function.

Focus on your core business: Every business has limited resources, and every manager has limited time and attention. Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly.

Productivity: Payroll management is a time-consuming activity. With this burden removed, your employees can focus on doing more productivity things, and you may even be able to trim your staff numbers.

By Citylights PPS

Payroll Services: Help Payroll Year end!!

2010-03-05T03:54:00.000-08:00

Businesses employing staff are required by law to submit a return called a P35 to HMRC at the end of each tax year. For the first time this year, the P35 submission is compulsory to send online. These returns allow HMRC to monitor the PAYE and National Insurance deducted from employee wages and to ensure that calculations have been made according to Government Legislation for that tax year.

The payroll year runs from 6th April through to 5th April the following year and applies to all companies. The period around Payroll Year End (PYE) can be a very busy time and quite daunting for a new business. Scott Muller, PAYE expert for, Citylights Payroll suggests that firms should start planning ahead now.

To help the Payroll Year End process run smoothly, here is a step-by-step guide for you to follow:

Have you set enough time aside to complete your Year End?

• The number of employees you need to produce P14 and P60s for will dramatically affect the amount of time it takes to run your Year End. Do you hold stock of these forms for the correct year you wish to process? If not the HMRC Order Line is 0845 6055 999

Are you aware of fines for late or incorrect submissions and the relevant submission deadlines?

• HMRC impose strict submission deadlines with fines raised for late or some incorrect submissions. Ensure you have everything in this list and that it is accurate. If you are unaware of the deadline to submit the P35 return for 2009/10 this is 19th May 2010.

Do you have your Tax/District Reference and contact details for your HMRC office?

• Ensure your submission contains the correct PAYE information. During this busy time of year, it is vital that you know who to contact should you have a problem. Visiting this HMRC link should provide you with the right tool to obtain which tax office to contact in case of an issue - www.hmrc.gov.uk, however do be warned, offices can become very difficult to get through to due to surges in demand at this busy time and can often be engaged constantly throughout the day.

Check your final payroll run for the tax year has been completed and all P11s to ensure your figures are correct?

• If the P11’s show incorrect information the Year End return will be incorrect. Running your wages using accredited payroll software, providing no processing errors have occurred throughout the year, means you can be confident that the P35 has been correctly calculated.

Are you adequately prepared for the obligations imposed by legislation changes?

• There were many changes to legislation for the tax year 2009/2010 including changes to Statutory Sick Pay, Maternity Pay, as well as changes to National Insurance legislation.

Is the payroll software you are using to calculate your P35, the latest version of the software? If unsure check with your supplier as you may need to upgrade. If not using software, The Inland Revenue can supply you with an Employers Pack, contact 0845 607 0143 to request this, or speak with your local tax office.

It is vital that your returns are accurate otherwise you could have a fine imposed by HMRC.

Making submissions via the internet is now compulsory?

• Submitting your Year End returns via the internet are compulsory and you could receive a fine even if a paper return reaches the Inland Revenue prior to the 19th May deadline. You need to register with HMRC to file online and also ensure that your payroll software has been accredited by the Inland Revenue for internet submission. The registration process should be undertaken well before the P35 deadline as all applicable reference numbers and password are delivered through the post.

If you are unsure and would like assistance with your Year End, seek professional payroll advice now, as getting it wrong will cost you money in the long run.

For professional Payroll Services come to Citylights PPS.