What is automatic enrolment?
Automatic enrolment places duties on employers to automatically enrol ‘workers’ into a work based pension scheme. The main duties are:
- assessing the types of workers in the business
- providing a qualifying automatic enrolment pension scheme for the relevant workers
- writing to most of their workers explaining what automatic enrolment into a workplace pension means for them
- automatically enrolling all ‘eligible jobholders’ into the scheme and paying employer contributions
- completing the declaration of compliance and keeping records.
We set out below details of how payroll information has to be submitted to HMRC under Real Time Information (RTI).
RTI – an introduction
Under RTI, employers or their agents are required to make regular payroll submissions for each pay period during the year, detailing payments and deductions made from employees each time they are paid.
In order to set up a Pay As You Earn (PAYE) scheme with HMRC it is necessary to contact the New Employer’s Helpline on 0300 200 3211 or register online via the GOV.UK website.
As an employer you will be responsible for operating PAYE and calculating National Insurance Contributions (NICs).
The ‘IR35’ rules are designed to prevent the avoidance of tax and national insurance contributions (NICs) through the use of personal service companies and partnerships.
The rules do not stop individuals selling their services through either their own personal companies or a partnership.
Regulations which took effect from 1 October 2011 mean that workers supplied to a company, or to any other entity, by an agency will become entitled to receive pay and basic working conditions equivalent to any directly employed employees after a 12 week qualifying period.
In December 2015, the government revealed a plan for new legislation that would abolish the Class 2 national insurance contributions. They also announced that further NIC changes would be proposed in 2018.
Originally, the change was expected to be implemented in 2018.
When Is The Earliest You Can File Taxes 2018?
Are you wondering when is the earliest you can file taxes in 2018? The majority of people in the UK pay income tax through the PAYE system. If you’re employed, a portion of your salary will be taxed, and your tax contributions will usually be deducted from your monthly wage packet.
When you take on a new member of staff, there are an initial six tasks you need to carry out to ensure you comply with the law:
- Set your pay rate and pay at least the National Minimum wage
- Carry out pre-employment checks to ensure your employee is legally entitled to work in the UK
- Arrange employers’ liability insurance if you are not already insured
- Register as an employer with HM Revenue & Customs
- Give your new employee a written statement of employment
- Ensure your new employee’s first payslip contains details of all deductions (National Insurance, tax etc.)