London, United Kingdom, August 30, 2008 --(PR.com
)-- Employers across the UK are beginning to prepare for the introduction of the Chancellors much-awaited change to the tax law. Anyone with the responsibility of doing the payroll will be affected. Tax codes will change, tax allowances will change and it’s all because Gordon Brown had to make a U-turn on his decision to abolish the 10% lower rate of tax.
Boogles Ltd have just launched their outsourced payroll service, in response what is expected to be a difficult time for many small businesses. There is a host of red tape to do with sick pay, maternity pay, paternity pay, tax credits, pension provision, year end returns, leavers & starters, minimum wage legislation, on-line filing requirements - and this is the job that Boogles are now making their specialty.
Trying to keep on top of the tax law can be tricky. The basic Personal Allowance for the 2008-09 tax year will increase by £600 from £5,435 to £6,035. At the same time the basic rate tax band (the amount of taxable income you can earn before paying higher rate tax) will reduce from £36,000 to £34,800. The minimum wage will increase across the board in October 2008, and the statutory holiday entitlement for UK workers will rise from 24 to 28 days in March 2009.
Lisa Newton, Director of Boogles Ltd, says: “There are a lot of changes to keep abreast of. When you are running a small business, there is a lot of red tape, and doing the payroll can be a weekly or monthly dreaded chore, so this is where we step in to help. Finding qualified payroll staff for a short time every month can be difficult, but when you outsource it, it can be cheaper, less stressful, and you just can then focus on your core activities – which is where your money is. After all, who wants to get the wages wrong for their staff? You could have a riot on your hands!”
Payroll is an ongoing cost of doing business, and getting it wrong is a disaster. What’s more, is that there are strict deadlines for when the Inland Revenue need to receive their payments and forms, and stiff penalties apply when these deadlines are missed.
Highlights in the payroll calendar are:
Monthly or Quarterly on the 19th: Paying the tax and national insurance collected – over to the Inland Revenue.
19 May: Ensuring the p35 is filed with the Inland Revenue. And sending out p60s to the staff.
6 July: Ensuring p11d’s are completed and filed.
Ongoing, throughout the year: p14. Keeping an accurate track of the employees work record.