What is OFF Payroll Working? Otherwise known as IR35
HMRC’s off payroll working rules – known as IR35 – apply to those who ‘work’ for a company, without being employed by it – usually a contractor of some sort. It mainly applies to those who do most of their work for that company to the extent that to all intents and purposes they are essentially employed by that company. A good example is the self employed person who has only one client. The IR35 rules are designed to ensure that such people pay tax, in the same way as they would if they were...
Holiday Pay. Who is entitled to what?
In our experience, holiday pay, who is entitled to it and how it is calculated is often a source of confusion, especially in smaller companies where there is often not a separate HR or payroll department, so here is a quick summary. Who is entitled to holiday pay? All workers – including casual, part time and zero hours workers - are entitled to paid holiday. Their entitlement begins to build up as soon as they start their employment for a company. How Much? This depends on the amount they...
How do I reduce payroll costs by at least 50% ?
Payroll is a big part of a company’s overheads and making sure that payroll is managed properly is very often underestimated. The pandemic made many companies take a hard look at their sometimes-out-of-date processes, as their stability came into question and employee morale started to waiver. As a result, business owners, Finance Managers and HR advisors have had to look at changing their priorities. Before Covid-19 over 50% of companies believed that their payroll was robust and more...
National Minimum Wage 2022 – make sure you’re ready!
Do you review your employees’ salaries on an annual basis? If you don’t, it’s even more important to remember that the National Living Wage for those over the age of 23 increases to £9.50 per hour in April 2022. So, make sure you are ready and update your Payroll software, because failure to adjust appropriate staff salaries to comply with national minimum wage could incur huge penalties. Here are the new National Minimum Wage 2022 rates: Follow this link for more information:...
National Insurance increase 2022 – The Facts
From April 2022 National Insurance Contributions (NIC) for employed and self-employed workers will increase by 1.25%, meaning most working people will pay National Insurance at a rate of 13.25%. In addition, the government will be introducing a Health and Social Care Levy of 1.25% that will be collected temporarily via the existing National Insurance Tax channels, before being separated into its own tax. From 2023, this health and social care levy element will be separated...
