The HMRC are responding to increased false self employment on the part of employment intermediaries acting on behalf of self employed workers who should legally be regarded as employed, and therefore attract the same rates of Tax and National Insurance as an employed person would do.
From 6 April 2015, Employment Intermediates must send details of workers they place with clients who are not:
- Direct employees or,
- Being treated as employees.
The HMRC has published Draft Reporting Regulations for which the consultation period has just ended (25 November 2014).
For more information about this change and the possible impact it might have to your business see the HMRC website
What you need to know
The HMRC has introduced penalties for employers who report their payroll information late. These apply from:
- 6th October 2014 for employers with more than 50 employees
- 6th March for employers with less than 50 employees
A penalty can be charged if:
HMRC will not charge a penalty if you are a new employee and you have sent your first FPS within 30 days of paying an employee or if it’s the first failure within the tax year to submit your report on time. This also will not apply to employers with fewer than 50 employees for the Tax year 2014-15.
For more information about how to avoid penalties for late submission see the HMRC website
If you are a business the buzz around apprenticeships won’t have escaped you. There are a lot of good news stories in circulation which show how apprenticeships are benefitting businesses, particularly SME’s, and providing young people with the opportunity to learn new skills. Providing young people with a real route to a career through the Apprenticeship scheme is good news for everyone.
What may be less clear is how to get started if you are interested in taking on an Apprentice.
Businesses may be able claim up to 5 different grants to cover the initial costs of hiring an Apprentice, which includes £1,500 in the form of an Apprenticeship Grant for Employers of 16-24 year olds.
The funding criteria is due to change in January 2015, so you may wish to look at advice on funding via the Apprenticeships.org.uk website
An Apprenticeship normally lasts for a minimum of 13 months and can last up to four years. This is an investment for a business but gives business owners a real opportunity to shape and develop their workforce.
It is worth noting that an Apprentice does become your employee and has full employment rights as would any other employee.
Apprenticeship schemes are facilitated through local colleges and independent training providers, and they can offer more advice and support to get you started. The Apprenticeships Website includes a search facility to help employers locate training providers depending upon the type of apprenticeship being offered.
What is Shared Parental Leave?
New regulations which affect current maternity and paternity leave and pay take affect as of 1st December 2014, and will apply to parents if:
- Their baby is due on of after 5 April 2015
- They adopt a child on or after 5 April 2015
Shared Parental Leave (SPL) and the Statutory Shared Parental Pay (ShPP) must be taken between the baby’s birth and their first birthday.
It effectively enables parents to make choices about how and when they take their SPL and gives them the opportunity to share the leave or the pay between them.
Some key points for businesses
- If a baby is due on or after 5 April 2015 and born early, these new rules will be applied in the current 2014/15 tax year
- It is the employee’s responsibility to check they are eligible for shared parental leave and/or pay and they must give their employer a written declaration confirming that they are eligible. An employer is not required to check or confirm the information given by the partner to determine whether the employee is eligible for shared parental leave and/or pay.
- Parents have to meet the eligibility criteria to qualify for SPL and ShPP. To view the eligibility criteria click here
- If eligible once the Maternity or Adoption leave and pay are ended early, parents can
- Take the rest of the 52 weeks of leave (up to a maximum of 50) as SPL
- Take the rest of the 39 weeks of pay or Maternity Allowance (up to a maximum of 37 weeks) as ShPP.
- NB the mother must take a minimum of 2 weeks maternity leave following the birth (4 weeks if working in a factory)
There are some formalities in terms of what information the employee must give the employer about their plans to take the SPL.
It is recommended that the employer has early informal discussions about their plans with regards to how they intend to take SLP so they can plan effectively for the period(s) of leave.
An employer cannot refuse a notification for continuous leave request. Each eligible parent can give up to 3 separate notices to book leave or to vary previously agreed leave although an employer may choose to accept more notifications from an employee.
Detailed guidance for employers is available through the ACAS website
AFH Payroll are proud in be sponsoring Eastbourne College for this years Eastbourne Youth Radio (October 2014)
Save the date: Eastbourne Youth Radio will be on 87.7 fm from 10.00am Wednesday 19 November until 5.00pm Friday 21st November.
Eastbourne Youth Radio is into it’s 14th year of broadcasting. This initiative is organized by the Eastbourne Education Business Partnership in association with Sussex Downs College.
Students aged between 5 – 19 years from schools across Eastbourne will be involved in the planning, creating and broadcasting and listeners can expect a wide range of entertainment across the EYR channel. These include live interviews, drama, music and features.
AFH Payroll are proud to sponsor Eastbourne College students’ involvement with Eastbourne Youth Radio.
Keep your ears tuned in and listen out for our Director, Fiona Hill, who will be interviewed during this years’ broadcast.
To find out more about Eastbourne Youth Radio, please visit http://www.eyr.org.uk/home
From 1 October 2013 the hourly rates change for national minimum wage in the UK
£6.31 – workers aged 21 and over
£5.03 – workers aged 18-20
£3.72 – workers above school leaving age and under 18
£2.68 – apprentice rate for apprentices aged under 19 or if aged 19 or over and in their first year of their apprenticeship.
Recently Cohub opened to provide a collaborative working space for businesses based in and around Eastbourne. We have used their meeting room for meetings and have been impressed with the space and facilities they have in the town centre.
During November, Cohub will be running a series of Knowvember workshops at lunchtimes on a variety of topics. We have been asked to do a workshop and will be looking at some of the common areas HMRC look at to establish if someone is an employee or self employed.
For further details of the workshops and to make a booking, please click the image below:
We hope to see you at our workshop on 28th November.
During 2011 we found out about some of the great work done by The Children’s Respite Trust and so we have decided that we will support this charity during 2012.
The Children’s Respite Trust is a registered charity that supports children with disabilities and their families by helping them to get a break. For more information about their work see their website:
In addition to our donations, during the year we will regularly mention The Children’s Respite Trust on Twitter and they tweet as @ChildRespite . If you are on Twitter, please do think about following them and tweeting with them. This is one of the many ways that you can help raise awareness of their valuable work in Sussex.
If you would like to make a donation or find out more about The Children’s Respite Trust please do take a moment to visit their website.