Author Archives: pmm-blog

Welcoming more members to our growing payroll team

In celebration of National Payroll Week, we are pleased to welcome two members to PM+M’s growing payroll team, our new payroll administrator, Andrea Wellock and payroll apprentice, Mohammed Aamir Patel. The addition of Andrea and Mohammed to PM+M has taken our payroll department to a team of eight, allowing us to dedicate even more time to helping our clients achieve more through their outsourced payroll solutions.

Whilst Andrea joined our team a few months ago, Mohammed joined our team only this week, following our appointment of six other apprentices across the firm. Working across all teams at PM+M, each apprentice will be studying towards a recognised qualification over the next three years, as well as gaining invaluable ‘on the job’ training.

Jane Parry, managing partner of PM+M, commented: “As a firm, we are fully committed to making sure that we invest in young local talent, so the apprenticeship programme is a hugely important part of the business. We are confident that these new recruits will further enhance the level of service that our clients have come to enjoy and we are really pleased to guide them through their studies and watch them develop as professionals.”

 

24/7 work culture – are you complying with minimum wage?

The advent of new technology has transformed the way we work and live. This dramatic change has wiped-out the 9-5 office culture, creating endless possibilities and making it far easier to work outside of the workplace. The average working week in the UK has risen to 42.7 hours for full time employees* so, how does this impact on your team and their salary?

 

What does this mean for employers?

Recently, a case was highlighted in Ireland where an executive was rewarded €7,500 after arguing that she was required to deal with out-of-hours work emails. This led to the individual working more than the maximum 48 hours a week set out in Ireland’s Organisation of Working Time Act 1997.

Obviously, enhanced communication can make our lives easier, but we can equally fall victim to constantly being tied to our job. In National Payroll Week our payroll team are encouraging employers to address the necessary policies to ensure that their employees can switch-off entirely.

No emails out of working hours or during holidays, no staying at the office outside normal hours, unless necessary and no calls to mobiles outside of the employees normal working hours, are just a few suggestions. Other measures include work-sharing and ensuring employees have a healthy and productive work-life balance.

Our digital mobility and capacity to work for longer periods of time and at differing hours can be very productive but also counter-productive for employee’s well-being and ultimately affect the salary. It is important that organisations work with individuals to produce guidance that is effective for all.

Julie Mason, who heads up the PM+M payroll team said: “Individual requirements for flexibility can make ‘a one for all policy’ difficult, but what is most imperative is to ensure that everyone can benefit and that a supportive culture is developed which focuses on the well-being of all team members. This in turn will mitigate any risk to the employer on dropping below the minimum wage.”.

If you would like to discuss any payroll issues with Julie Mason or any member of the payroll team, please contact our Payroll Services Manager, Julie Mason, on 01254 679131 or via email at julie.mason@pmm.co.uk.

Childcare Vouchers vs Tax-Free Childcare

Do you offer the childcare voucher scheme to your team ? The current tax-free scheme has proven very popular with working parents, allowing them to earn up to £55 per week in childcare vouchers. The scheme will soon be replaced by a new government initiative meaning that there are a few things that you, as a business owner, will need to consider.

You are still able to offer the current scheme to any eligible employees if they sign up before October 4, 2018. However, it is advised that you encourage your team to apply as soon as possible, as they must have received the first set of vouchers before the cut-off date. Alternatively, you could take this opportunity to stop your involvement in the scheme altogether. Whichever way you decide to proceed, it is vital that you inform your employees appropriately.

After the cut-off date, employees will only be eligible for the government led programme, which requires no input from yourself. The new scheme will require team members to deposit funds into an account on the HMRC website where the government will also contribute up to £2000 per child, per year.

The new scheme: what is Tax-Free Childcare?

The new scheme will be open to single parents/couples who work eight or more hours a week (including self-employed individuals), and who pay for Ofsted registered childcare for a child under the age of 12, or under 17 if the child is disabled.

Eligible families will receive 20% of their annual childcare costs paid for by the government. In other words, for every 80p in the £1 contributed by parents, an additional 20p will be funded by the government up to a maximum total of £10,000 per child per year.

The new scheme is open to all qualifying parents, unlike the current childcare voucher scheme which is only available to people whose employer offers the scheme.

New scheme vs current scheme

Childcare voucher scheme Tax free childcare
You can only apply for them if your employer offers them Anyone can apply
You do not have to earn any minimum amount and only one parent needs to be working You will need to earn a minimum of £115.00 per week and both parents need to be working
The maximum age where a child’s childcare can be paid for is 15 years (16 years if disabled) The maximum age where a child’s childcare can be paid for is 12 years (17 years if disabled)
There is no maximum amount of monies earned Parents must earn less than £100,000 per year

If you have any questions regarding the changes to the childcare scheme, please do not hesitate to get in touch with our Payroll Services Manager, Julie Mason, on 01254 679131 or via email at julie.mason@pmm.co.uk.

PM+M apprentice James Cocker appears on Sky News

Yesterday saw thousands of students across the UK receive their highly anticipated A-Level results, which for many acted as a deciding factor of where they were going to spend the next three years at university.

Recent statistics however have shown that more and more students are opting for apprenticeships over university degrees, as a way of kickstarting their careers through work-based learning without the burden of debt.

As a firm committed to supporting the region’s young people and producing home grown talent, PM+M recruits a number of apprentices each year. This year’s intake of 7 apprentices was our largest to date. We are so pleased that the first 5 are settling in well and taking working life in their stride and are looking forward to the remaining 2 joining us in September.

Yesterday was a particularly eventful day for James Cocker, one of our new Run My Business team apprentices, who alongside receiving his own A-Level results, also made an appearance on Sky News discussing the benefits of apprenticeships compared to university tuition.

In his interview, James commented, “I know there’s a chance I’m missing out on some of the social aspects of university, but I can easily visit my friends at uni and I’m already making new friends at work, so I’m definitely going to have a good social life.

“Plus, instead of being £60,000 in debt after three or four years, I might have earned a similar amount, so I’ll effectively be £120,000 better off.”

We would like to offer our congratulations to James and our corporate services apprentice, Rebecca Nuttall, on their outstanding A-Level results, and a huge thank you to all of our apprentices for choosing to join us at PM+M.

Introducing new Xero Expenses

Expense claims are a part of running any business, from fuel to office supplies and everything in between. However, a what should be simple task of reimbursing employees can quickly turn into a laborious, paper work nightmare.

Well, not anymore. Recently Xero launched their new Xero Expenses to tackle several issues within Xero. The new function will run along aside the existing and gives accountants, bookkeepers and small businesses all the tools needed to process expense claim simply and efficiently.

What’s new?

  • Faster expense capture – Reduces the need to keep paper receipts, a quick picture taken on a smart phone can be automatically scanned in.
  • Push notifications – To keep businesses, employees and advisors up to date with claims from anywhere.
  • More flexible user permissions –  Giving complete control of who can view, submit, and approve an expense claim for or on behalf of someone else.
  • Simple and intuitive workflows – Making it easy to monitor, review and approve any unpaid expenses.
  • Greater insights and powerful analytics – Helping businesses to understand their spending habits and patterns with a detailed and real-time understanding.

If you have been using classic expense claims in the six months prior 10 July 2018, you can continue using it for the foreseeable future. However, you’ll also be able to try out Xero Expenses for free until 28 September 2018.

For any further information, help or advice with Xero, please do not hesitate to contact us on 01254 679131 or email cloudaccounting@pmm.co.uk.

House of Fraser: The same old story

The owner of Sports Direct has agreed to buy House of Fraser for £90 million when not so many years ago it was acquired by a Chinese group for about £480 million. We all know that retail is a challenging place to be right now, but there are parallels to be drawn with other industries. How is value created and maintained?

Four key conclusions are being put forward in the financial press.

The internet

If you don’t evolve, you get left behind. House of Fraser was investing in digital technology but at a fraction of the rate of and later than its main competitors. It isn’t a lot different in a manufacturing environment. If you don’t invest in new plant and equipment that works more quickly or to greater precision, you risk losing customers who will seek out a better solution.

No USP

What was House of Fraser all about? Lots of swallowed up defunct brands and stores dominated by third party concession owners. No reason to say, “I have to visit House of Fraser because…..”. What is your business known for? Where is it world class and what is holding it back?

Too many stores

It’s all very well investing in expansion, but those assets do need to be sweated to generate a healthy return. They need to be utilised optimally. There is no point having a factory full of state of the art assets if half of them are only working at a fraction of their potential.

Management troubles

Usually the root cause of everything…

The question is, what has a high-profile retail failure got to do with the owner-managed business around the corner? The answer: the same things drive value.

Invest appropriately. This doesn’t mean being at the bleeding edge, but you can’t keep relying on assets 20 years out of date.

Understand what your customers want, what you are good at and how that can create lasting value. What needs to be changed?

Make sure you are efficient. Efficient businesses make more money which puts them at an advantage over inefficient ones.

Invest in your management team so they are running things on a day to day basis. This leaves you much more space for working on the business and not in it.

If you are considering the value of your business, get in touch today on 01254 679131 or via email at jim.akrill@pmm.co.uk. We can help you understand where you are now, where you want to be, and how you can get there.

Contractor loan schemes – HMRC offers settlement opportunity

 

 

Have you ever used a contractor loan scheme or alternative arrangement to be paid more tax efficiently than your salary?

If you have then you are probably now in receipt of correspondence from HMRC, offering you the chance to pay the tax and national insurance that you should have paid on the loans you have received.

This could be a substantial amount, however, the main thing we are telling people is not to panic – there are things you can do.

If you have a loan outstanding and you have the funds to repay it, then we advise that you do so before March 2019. You will still have to notify HMRC of the arrangement but the tax charge that arises on that date will not apply.

If you cannot repay the loan, then you need to understand what your potential exposure to tax and National Insurance will be. We can help you with that and arrange for a settlement contract to be agreed with HMRC.

Once the formalities are concluded, you can arrange to pay the amount you owe over a longer period of time and, depending on your circumstances, this could be five years or more.

So, if you think you may be affected by this and need some help to settle the matter, please get in touch with Julie Walsh (julie.walsh@pmm.co.uk or 01254 604312) as soon as possible.

Inheritance tax hits record high

Inheritance tax planning is something that many of us don’t want to think about. Facing your own mortality isn’t easy and can involve some difficult decisions, particularly in complex and extended families.

Recent statistics released by the government have revealed that over the last financial year, inheritance tax receipts reached their highest-ever level (totalling £5.2bn in 2017/18), a value that has increased by a staggering 8% (£388m) since the 2016/17 financial year.

There can be significant benefits from doing some basic tax planning at the right time, providing reassurance that your affairs are in order and your family aren’t going to face a huge tax bill. We always tell our clients to keep it simple. There are some elaborate schemes out there, but they usually bring lots of complexity and can reduce future flexibility. More often than not, some sensible advance planning can achieve substantial benefits without the complexity.

The right tax planning can help you steer clear of large inheritance tax bills and make sure that you avoid adding to this tax take, allowing you to achieve more from your money and secure your family’s future. The key to inheritance tax efficiency is to think about it early and be open with your family. Having conversations now can avoid problems later and pave the way for some effective tax planning.

To find out more about how we can help you plan efficiently to reduce future tax liabilities, please feel free to contact either Jane Parry (jane.parry@pmm.co.uk) or Wendy Anderson (wendy.anderson@pmm.co.uk).

Full article and latest statistics available here

HMRC cracks down on second home sales

 

 

 

 

 

 

HMRC is writing to over 1,500 people who have sold a second home or buy-to-let property in the 2015-16 tax year but not declared a profit on which capital gains tax would potentially be liable. The letters, of which the wording is still being finalised, will ask recipients to explain why they have not paid the tax that HMRC’s computer models indicate they owe.

Chas Roy-Chowdhury of the ACCA said the HMRC initiative should serve as a “wake-up call” to existing and former landlords or owners of second homes, some of whom may not realise they owe tax.

If you believe this is something that may affect you, disclosing your knowledge before HMRC contact you to charge a penalty fee will be in your favour.

We can help you make a full disclosure to HMRC and guide you through the process to settlement and negotiation of the penalty.

If you would like to discuss this further, please contact  Julie Walsh on 01254 679131 or via email at julie.walsh@pmm.co.uk.

Is your business ready for Making Tax Digital?

Making Tax Digital (‘MTD’) for VAT is the first phase in what is intended to make the UK tax system more streamlined and will bring about major changes to affected businesses.

As part of the new legislation, businesses that are VAT registered and trading over the VAT registration limit on 1 April 2019 will be required to keep their accounting records digitally and submit their VAT return to HMRC through MTD compatible software. This means businesses will no longer be able to submit manually through the HMRC gateway.

It is vital that all affected businesses are aware of their obligations relating to these changes and the processes which need to be put in place to make them compliant.

We are urging all UK business owners to consider their options now to ensure that they are compliant in time for the deadline of 1 April 2019. PM+M have already helped numerous clients prepare for MTD and will continue to support businesses as they start the process to comply with HMRC’s new rules.

We would be more than happy to answer any questions you have about MTD and advise you on the best route to take for your business. Please feel free to:

  • Read our helpsheet
     
  • Attend one of our FREE Making Tax Digital seminars to find out more about the implications of MTD:

Tuesday 4 September
PM+M, Greenbank Technology Park, Challenge Way, Blackburn, BB1 5QB (register your place here)

Tuesday 11 September
East Lancashire Chamber of Commerce, Red Rose Court, Clayton Business Park, Accrington, Lancashire, BB5 5JR (register your place here)

  • Call into one of our FREE MTD drop-ins – with no appointment necessary, call into our offices from 9am – 5pm on one of the below dates for a free consultation with a specialist MTD consultant who will talk you through your next steps and provide guidance on which software to use and how / when to implement this into your business:

Wednesday 18 July
PM+M, Greenbank Technology Park, Challenge Way, Blackburn, BB1 5QB (register your place here)

Thursday 9 August
PM+M, 9A Finsley Gate, Burnley, BB11 2HA (register your place here)

Friday 17 August
PM+M, Waterfold House, Waterfold Business Park, Bury, BL9 7BR (register your place here)

  • Get in touch with us for a consultation on how to prepare for MTD, which will be followed by software set up and training – we would welcome the opportunity to sit down with you to discuss your options in more details. Once you have chosen your preferred cloud software package, we will then provide you with setup assistance, alongside ongoing support whenever you need it. We will also train you and your team on the best ways to use whichever system you have decided to use.

For any further information, help or advice with your Making Tax Digital requirements, please do not hesitate to contact us on 01254 679131 or email MTD@pmm.co.uk