HMRC has issued a consultation on possible changes to the operation of PAYE and NIC on employees who are contracted to work via labour providers based outside the UK. Draft legislation setting out HMRC’s preferences will be published shortly and forest will keep you up to date. New rules will apply with effect from 6 April 2014. The new rules will not be retrospective.
If you’re a recruiter referring your candidates to a limited company / umbrella provider, what do you do to ensure that the provider is operating compliantly? Is your provider an ICAEW member-firm? Is your provider an FCA regulated business?
As you should now be aware, HMRC recently implemented RTI (Real Time Information – read about it here). By and large it’s gone smoothly, and forest led the way – volunteering for a pilot scheme which saw us as one of the test cases used by HMRC six months before launch.
One thing that’s been causing a bit of turmoil in the exciting world of payroll is the abolition of starter and leaver forms – P45 and P46. With the introduction of RTI, the end-of-year forms P35 and P14 are no longer submitted and the starter and leaver process is simplified. HMRC wants employers to continue to give employees a form P45 (employee parts) when they leave but you no longer send forms P45 (part 1) or P46 to HMRC. Instead you must report all starter and leaver information via your payroll software each time you pay someone.
Although HMRC have abolished and changed a number of things ( to make life easier) where they’ve fallen down somewhat is informing the rest of the world what to do next!
If you’re struggling to make heads or tails of your obligations in the face of recent changes, it’s time to speak with an expert at forest. We’ve got the answers for you so you can get busy growing your business.