Introduction
- This is our approach to all articles.
- This article is being updated as a result of the amendments to Legislation for the current tax year 2023/24.
- This sets out the standard payroll procedure for all clients’ payroll requirements.
- This incorporates Standard Systems and Procedures (SSAP), basis of engagement and the commercial terms, from cradle to grave.
- This new system is being implemented with effect from 6 April 2023 onwards.
- This is to automate the payroll process and to make the actual monthly tasks, reporting, filing:
- faster,
- more efficient,
- easier to manage, and
- as a result, more cost effective.
- Most importantly to “keep a lid” on the cost of the exercise.
- The entire system is as follows, subject to any amendments that are agreed individually:
For Directors Only (Annual Only)
- An annual tax efficient, monthly salary will be established and agreed in April 2023.
- It is run using Sage 50 Payroll software.
- The process is as follows:
- Your tax code will be checked with HMRC for any notifications, at the beginning of the tax year.
- Enable Employment Allowance, where there is more than one employee in the company.
- Any changes or amendments are subject to a charge of £50+VAT each.
- April 2023 to February 2024 (Month 1 – Month 11):
- We will ensure that the date is set to the month being calculated.
- Monthly payroll will then be run for that month (total for 11 months)
- We will generate the monthly payslips, wages summaries and P32s (PAYE & NIC).
- Place these documents in Dropbox.
- March 2024 (Month 12 Only):
- We will check HMRC for amended tax codes.
- We will ensure there are no adjustments to the salaries.
- Monthly payroll will then be run for the month of March.
- To this figure, any adjustments required for the year, will be added.
- We will generate monthly payslips, wages summaries and P32s (PAYE & NIC).
- Place these documents in Dropbox.
- Monthly Reporting
- The FPS/EPS will be filed monthly using the figures agreed for the 11 months.
- The FPS/EPS will also be filed for month 12.
- These will be reported to you in Telegram.
- The amount shown on the payslip can be drawn by you each month, from April to March.
- Cost Breakdown:
- This will be billed for all Directors at a rate of £10+VAT per month, for 11 months (April to February)
- March payroll will be billed at £40+VAT per Director.
- This is a total of £150+VAT per year, per Director.
For Employees (Monthly)
- This will require timely monthly notifications of the salaries by you, in the format agreed (Payroll Boomerang).
- Unless advised by you, by the date specified below, the salary will be run as standard.
- If the salary is asked to be run late or adjustments received after the deadline date, then there will be an additional charge of £50+VAT, per payslip.
- The basis of engagement for the directors will be worked out separately for others and the combined cost will be reflected on one summary sheet.
- All payments are required to be made monthly, by standing order or by credit card.
- The process is exactly the same as Annual payroll, but carried out every month.
- Information Requirement
- The pre-condition of the system is that any information required must be sent to us on a timely basis (specified in the basis of engagement), without being prompted or for Avar to chase.
- Where the information required is not received on time, this is subject to an additional charge of £25+VAT, on each occasion.
- Where reminders are required to be sent by email, this will be subject to a charge of £25+VAT, per reminder.
- For directors, a review and personal tax assessment will be carried out before March 2023 and Month 12 (March 2023) will be adjusted accordingly (if required), without any further cost.
- Cost Breakdown:
- This will be billed for all Employees at a rate of £20+VAT per month, for 11 months (April to February)
- March payroll will be billed at £80+VAT per Employee.
- This is a total of £300+VAT per year, per Employee.
Special Requirements
- Arrangements required by individual clients, other than the above, will be worked out with them specifically and that will become their standard system and procedure for payroll.
Other Matters
- This will be included as part of the annual agreement of the package required for each client specifically.
- All information required to be given, must be done by the 18th of each month, at the latest, without reminders, whatsoever.