There are a number of ongoing requirements and future changes to payroll legislation to keep in mind.
Pension Re-Enrolment – action needed
A significant ongoing requirement that directly affects employees is re-enrolment. Re-enrolment takes place every three years on the anniversary of the employer’s original staging date for automatic enrolment, whereby the employer must re-enrol eligible employees that have previously opted-out of the pension scheme earlier than the prior twelve months. The employer will need to write to affected employees to inform them of re-enrolment and provide guidance on their options. The employer will also need to complete a Re-Declaration of Compliance within five months of the re-enrolment date to confirm all duties have been fulfilled, as The Pensions Regulator can impose considerable fines for non-compliance.
Benefit in Kind Reporting – consider payrolling benefits
HMRC are no longer accepting paper submissions of forms P11D, P11D(b) and any amendments to these forms. Instead, submissions must be completed via either commercial software or the HMRC PAYE Online account. Any amendments must be completed via HMRC PAYE Online only.
To simplify reporting requirements, an employer can register with HMRC to payroll most benefits instead of completing form P11D, although form P11D(b) must still be submitted.
Holiday Pay & CIS – future changes
In terms of future changes, a consultation recently took place in relation to holiday pay calculations for employees working for part of the year, or with irregular working hours, and an announcement on potential changes is expected shortly. In addition, a consultation is ongoing for reforms affecting the Construction Industry Scheme.
Outsourcing Payroll
Outsourcing payroll responsibility to Kilsby Williams is one way to ensure all ongoing requirements are met, sensitive data is protected and any potential penalties from HMRC or The Pensions Regulator for non-compliance are mitigated. Kilsby Williams provides a full secure payroll bureau service by qualified professionals, which covers end-to-end payroll and automatic enrolment compliance together with CIS return submission and P11D preparation. Alternatively, for those that wish to process payroll in-house, we can provide comprehensive compliance checks of your payroll data and procedures.
If you would like any assistance with your payroll or to obtain a no-obligation quote for our services, please contact our Payroll Team at 01633 810 081 or payroll@kilsbywilliams.com.
