Business Essentials – Advertorial
We still take on new clients and find that a few are not claiming everything they are entitled to, either as an employer, or on behalf of their employees. Payroll is an often overlooked function of the business, but if you don’t have a skilled payroll professional, it could be costly for both the employer and their employees.
Below are a couple of examples.
Employment Allowance
Many employers are eligible to claim up to £5000 per year to reduce their National Insurance liability. The allowance is deducted from your Employer’s NI liability each month, until the £5000 is used up.
The main exceptions are employers with over £100,000 combined employee & employer NI liability for the previous year. For a group of connected companies, the allowance can only claim for one company and the total figure across the group must be less than £100,000. Also, director only companies are not eligible to claim. If in doubt, speak to your accountant or payroll specialist.
It is worth mentioning that if this allowance has not been claimed, it can be backdated by up to 4 years. Over the past few years, we have claimed back thousands of pounds in unclaimed allowance for some of our clients.
Tax relief on pension contributions
Employees that are enrolled into a workplace pension scheme are entitled to 20% tax relief on their employee contributions. However, if this has not been set up correctly, employees could be losing out. If in any doubt, check with your pension or payroll provider to make sure that the pension scheme is either set up as ‘tax relief at source’ or a ‘Net pay arrangement’ scheme.
About Cornwall Payroll
We are an experienced team of Payroll professionals based in Truro. We offer a friendly, cost effective service to all sectors of business across Cornwall. We hold CIPP accreditation after passing their Payroll Assurance Scheme once again.
For more information on our services, please contact tim@cornwallpayroll.co.uk or call us on 01872 306412
