Increased contributions for workplace pension schemes in 2018

Auto-enrolment of staff in workplace pension schemes now applies to even the smallest of employers, although there are exclusions. The current minimum contributions are 1% from the employer and 1% from the employee but these limits are scheduled to increase to 2% and 3% respectively from 6 April 2018.

The contributions will then increase to 3% from the employer and 5% from the employee from 6 April 2019. Employees will have a further opportunity to opt out of auto-enrolment.

Contact us if you would like further help or advice about auto-enrolment or work place pensions.

Are spouses wages fully deductible?

HM Revenue and Customs have recently won a tax tribunal case where they were seeking to challenge the deduction for a wife’s wages in arriving at the profits of her husband’s business. The judge agreed with HM Revenue and Customs that the amount allowed as a deduction should be limited based on the hours spent and appropriate rate for the work done.

The general principle here is that the expense must be incurred wholly and exclusively for the purpose of the trade. Traditionally when the personal allowance was fairly low (e.g. £6,475 in 2010) it was quite easy to justify the wages paid to the spouse at around that level. However, there have been significant increases in the personal allowance in recent years to £11,500 in the current tax year and it is important that wages paid to the spouse can be justified.

Release more time to focus on your business and let Saints Payroll Bureau manage your payroll?

The burden placed on businesses to comply with payroll legislation has been continually increasing over the last few years.   The introduction of Real Time Information (RTI) in 2014 resulted in many employers questioning whether they should continue to operate their own payroll.

The new rules for pensions Auto Enrolment will add significantly to the administration of your payroll. Now is a good time to consider the advantages of outsourcing the payroll function, including:

  • Peace of mind – our experienced team will take care of your payroll all year round.
  • Confidentiality – payroll records are off your premises.
  • Freeing up management and accounts/admin staff to work on other areas of your business.
  • Point of contact for your payroll questions or HMRC liaison.
  • BACS approved bureau.
  • Experienced in Auto Enrolment.
  • Detailed departmental payroll reporting and electronic nominal ledger data exporting available.
  • E-payslips used saving on paper and administration.
  • No more time and money spent on payroll software maintenance and updates.

If you would like any further information or you would like a quote, please contact your local Saint & Co office.

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