Important - If we do not receive confirmation from you, no salary will be processed and no RTI submissions will be made to HMRC.

• You may want to pay yourself a salary of £6,708.00 or above so that you don’t lose your entitlement to state benefits upon retirement.
• Is the salary “commensurate” with the nature of the role? - What might someone expect to earn in your job role? A challenge on this point from HMRC is unlikely to be successful but setting an appropriate salary is often viewed from a moral or commercial standpoint rather than tax perspective.
• Bear in mind any salaried income you have already received in the current tax year (for example, if you have just left a permanent role).
• The above all presumes that you are not caught by IR35, if you are caught by IR35 or one of your contracts is, this work must be calculated using the deemed salary method (please speak to us).

Real Time Information (RTI) is the system used by HM Revenue & Customs (HMRC) to collect payroll information from employers. Under RTI, employers must report payroll details to HMRC on or before the date a salary is paid rather than at the end of the tax year.

• RTI tells HMRC how much salary has been paid
• It confirms how much Income Tax and National Insurance has been deducted
• Late or incorrect submissions can result in penalties

RTI reporting is a legal requirement for all employers operating a PAYE payroll, regardless of the size of the business or the number of employees. When we run payroll for you, we submit the required RTI returns to HMRC on your behalf. These include:

• Full Payment Submission (FPS) - Submitted each time a salary is paid
• Employer Payment Summary (EPS) may be required If no salary is paid in a month

Because RTI information must be submitted on or before payment is made, salary instructions and changes must be received before the 15th of the month. Late instructions may not be processed in time to meet HMRC deadlines.

Since March 2015, HMRC is penalising companies £100 per month where they do not make the required monthly payroll submissions on time.

For more information on penalties for late RTI submissions please follow this link: HMRC RTI Penalties

Automatic enrolment is a legal requirement introduced by the government to help employees save for retirement through a workplace pension. Under automatic enrolment rules, employers must assess their workforce and enrol eligible employees into a qualifying pension scheme.

• Applies where an employee earns more than £833 per month
• Employee must be aged between 22 and State Pension age
• Does not usually apply to directors unless they have a contract of employment

Where automatic enrolment applies, employers have ongoing duties, including making pension contributions and submitting regular pension data. If you employ staff or expect to do so during the year, and believe automatic enrolment may apply, please contact us.

The Employment Allowance allows eligible employers to reduce their Employers National Insurance (ERNI) liability, up to a maximum of £10,500 of ERNI per year.

You can claim the employment allowance if the following apply to your business:

• You are a business
• you do less than half your work in the public sector

It is not available where a company has only one paid director and no other employees

We will only apply Employment Allowance where eligibility has been confirmed.

Please contact us if you would like to discuss this further.