A charity must follow any rules in their governing document about who appoints new trustees, when, and how, new trustees are appointed and who can be a trustee – the governing document may impose conditions
Co-opted trustees are found most commonly in unincorporated associations or charitable companies where the charity has a membership. Their appointment is under express provisions in the governing document allowing the trustee body to fill vacancies on an ad hoc basis or to supplement the skills of existing trustees.
Trustees may be appointed in a number of different ways – for example:
- they can be nominated by the other trustees or by another organisation, such as a local authority
- they may be elected by the charity’s members
- they may become a trustee by virtue of a post which they occupy, such as a mayor or mayoress of a town, the chief executive of a local health trust or the head master of a school; such trustees are known as ‘ex officio’ trustees
Other than in the case of ex officio trustees, the appointment of a trustee becomes effective only once a prospective trustee has formally agreed to accept the trusteeship. The trusteeship may then begin immediately, or on a specified date.
Following the appointment of a new trustee, trustees must ensure that the Commission is notified of the appointment as soon as possible
You must give your employees and ‘workers’ a payslip on or before their payday.
What to include
Payslips must show:
- pay before any deductions (‘gross’ wages)
- deductions like tax and National Insurance
- pay after deductions (‘net’ wages)
- the number of hours worked, if the pay varies depending on time worked
Payslips can also include information like your employee’s National Insurance number and tax code, their rate of pay, and the total amount of pay and deductions so far in the tax year.
Employers must also explain any deductions fixed in amount, for example repayment of a season ticket loan. This can be shown either on a payslip, or in a separate written statement.
Deductions from your employee’s pay
An employer is not allowed to make deductions unless:
- it’s required or allowed by law, for example National Insurance, income tax or student loan repayments
- the employee has agreed in writing
- their contract says you can
- there’s a statutory payment due to a public authority
- they have not worked due to taking part in a strike or industrial action
- there’s been an earlier overpayment of wages or expenses
- it’s a result of a court order
A deduction cannot normally reduce their pay below the National Minimum Wage even if they agree to it, except if the deduction is for:
- tax or National Insurance
- something they’ve done and their contract says they’re liable for it, for example a shortfall in the till if they work in your shop
- repayment of a loan or advance of wages
- repayment of an accidental overpayment of wages
- buying shares or share options in the business
- accommodation provided by you as their employer
- their own use, for example union subscriptions or pension contributions
You must choose a business structure if you’re starting a business that helps people or communities (a ‘social enterprise’).
If you want to set up a business that has social, charitable or community-based objectives, you can set up as a:
- limited company
- charity, or from 2013, a charitable incorporated organisation (CIO)
- community interest company (CIC)
- sole trader or business partnership
If you’re setting up a small organisation like a sports club or a voluntary group and do not plan to make a profit, you can form an ‘unincorporated association’ instead of starting a business
Social enterprises are distinct from traditional charities or voluntary organisations in that they generate the majority, if not all, of their income through the trading of goods or services rather than through donations.
You need to choose the right structure for your charity, depending on whether you need it to have a corporate structure and whether you want to have a wider membership
There are four main types of charity structure:
- charitable incorporated organisation (CIO)
- charitable company (limited by guarantee)
- unincorporated association
Your charity structure is defined by its ‘governing document’ (the legal document that creates the charity and says how it should be run
More detailed information can be found here
Plan and loan types and thresholds
With effect from April 2019, the thresholds for making Student Loan deductions are:
- Plan 1 – £18,935 annually (£1577.91 a month or £364.13 a week)
- Plan 2 – £25,725 annually (£2143.75 a month or £494.71 a week)
Repayments for Plan 1 and Plan 2 are calculated at 9% of the income above the threshold.
Postgraduate Loans (PGL) – £21,000 (£1750 a month or £403.84 a week)
Repayments for PGL are calculated at 6% of the income above the threshold.
Starting Student loan and PGL deductions, checking plan and loan type
You should work out the correct figure of employee earnings on which Student Loan and PGL deductions are due. The figure to use is the same gross pay amount that you would use to calculate your employer’s secondary Class 1 National Insurance contributions.
From 6 April 2019 your employee may be liable to repay a PGL at the same time as a Plan 1 or Plan 2 loan. If so, they’ll be due to repay 15% of the amount they earn over the threshold.
Start making Student Loan and PGL deductions from the next available payday using the correct plan and loan type, which you will select on your HMRC submission, if any of the following apply:
- your new employee’s P45 shows deductions should continue – ask your employee to confirm their plan and loan type
- your new employee tells you they’re repaying a Student Loan – ask your employee to confirm their plan and loan type
- your new employee fills in a starter checklist showing they have a Student Loan – the checklist should tell you which plan type and loan type to use, if your employee has both plan type 1 and 2, ask them to check with the Student Loan Company for the correct plan type to take deductions under otherwise, default to plan type 1 until you receive a student loan start notice SL1 that HMRC sends you
- HMRC sends you form SL1 ‘Start Notice’ – this will tell you which plan type to use
- HMRC sends you form PGL1 ‘Start Notice’ – this will tell you they have a PGL
- you receive a Generic Notification Service Student Loan reminder – ask your employee to confirm their plan and loan type
If your employee does not know which plan or loan type they’re on, ask them to check with the Student Loan Company (SLC). If they’re still unable to confirm their plan or loan type, start making deductions using Plan type 1 until you receive further instructions from HMRC – defaulting to Plan 1 is only available for Plan 1 or Plan 2 loans.
More detailed information can be found here