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.
