You may be put on an emergency tax code if you change jobs. HM Revenue and Customs (HMRC) will correct it automatically after you’ve given your employer details of your previous income or pension.
Your employer will get these details from your P45 – if you don’t have one, they should ask you for further information.
HMRC will also update your tax code when:
After your tax code changes
HMRC will adjust your tax code so you pay the right amount of tax across the year. They’ll write to you or email you when your tax code has been updated.
They will also tell your employer or pension provider that your tax code has changed. Your next payslip should show:
- your new tax code
- adjustments to your pay if you were paying the wrong amount of tax
Find out more here
When to apply to register your charity
Usually, you must register with the Charity Commission if your charity is based in England or Wales and has over £5,000 income per year. The commission will take action to secure compliance if it identifies a charity which isn’t registered but should be.
If your charity is a charitable incorporated organisation (CIO) it must register whatever its income.
Charities that don’t have to register
Small unincorporated charities
If your charity is based in England and Wales and isn’t a CIO, you don’t have to apply to register it if its annual income is less than £5,000. But you can still apply to HM Revenue and Customs for recognition as a charity to get charity tax breaks and claim gift aid.
You can apply to the commission to register this sort of charity voluntarily, but the commission will only consider applications in exceptional circumstances. For example, if you can prove that your charity has been offered significant funds but has to provide a registered charity number before it can receive the funds.
More details can be found here
Happy New Year everyone! Now we are all back at work, maybe it’s time to clarify who is a ‘worker’ in your organisation
A person is generally classed as a ‘worker’ if
- they have a contract or other arrangement to do work or services personally for a reward (your contract doesn’t have to be written)
- their reward is for money or a benefit in kind, for example the promise of a contract or future work
- they only have a limited right to send someone else to do the work (subcontract)
- they have to turn up for work even if they don’t want to
- their employer has to have work for them to do as long as the contract or arrangement lasts
- they aren’t doing the work as part of their own limited company in an arrangement where the ‘employer’ is actually a customer or client
Workers are entitled to certain employment rights, including:
- getting the National Minimum Wage
- protection against unlawful deductions from wages
- the statutory minimum level of paid holiday
- the statutory minimum length of rest breaks
- to not work more than 48 hours on average per week or to opt out of this right if they choose
- protection against unlawful discrimination
- protection for ‘whistleblowing’ – reporting wrongdoing in the workplace
- to not be treated less favourably if they work part-time
More details can be found here
Wishing you all a joyful Christmas and a peaceful and prosperous New Year from all of us at DCAS
The office will be closed for the Christmas Holidays from Friday 22nd December 2017 until Tuesday 2nd January 2018
Our Winter Newsletter should now be with you, but if you have not received it, you can read it online here Winter 2017 Newsletter.
If you would like us to post a copy to you, you can join our Newsletter Distribution List by contacting us here
When to change charity structure
Changing to a different charitable structure usually involves setting up a new charity, transferring your original charity’s assets and liabilities to it then closing your original charity.
Your charity’s legal structure sets out what type your charity is. There are four common types of charity structure:
- charitable incorporated organisation (CIO) – there are 2 structures; association CIO and foundation CIO
- charitable company (limited by guarantee)
- unincorporated association
Your charity’s legal structure determines:
- who will run it and whether it will have a wider membership
- whether it can enter into contracts or employ staff in its own name
- whether its trustees are personally liable for what it does
A “Changing Charity Structure Checklist” can be found here
You must tell Companies House about any changes to your limited company, including:
- directors and company secretaries, eg new appointments, resignations or changes to their personal details
- changing your company name
- changing your registered office address
- changing your accounting reference date
- changing where your company records are kept, if different from your registered address
- which records you’ll keep at an alternative address
More information can be found here
The minimum contributions that you and your staff pay into your automatic enrolment workplace pension scheme are increasing.
Minimum contributions are increasing in two phases. The first increase must be in place from 6 April 2018 and the second from 6 April 2019.
Most employers use pension schemes that currently require a total minimum of 2% contribution to be paid. The calculation for this type of scheme is based on a specific range of earnings. For the 2017/18 tax year this range is between £5,876 and £45,000 a year (£490 and £3750 a month, or £113 and £866 a week).
This table shows the minimum contributions you must pay and the date when they must increase:
||Employer minimum contribution
||Total minimum contribution
|Until 5 April 2018
|6 April 2018 to 5 April 2019
|6 April 2019 onwards
The staff contribution rate may vary depending on the type of tax relief applied by your scheme. If you are unsure check your scheme documents.
The Pensions Regulator gives more details here
We received this cry for help recently – ‘My employee is entitled to Statutory Maternity Pay, but we can’t afford to pay it – what can we do?‘
Help is available from HMRC
If you can’t afford to make payments
You can apply for HM Revenue and Customs (HMRC) to pay you in advance if you can’t afford to make statutory payments.
How to apply for advance payment
Apply online to be paid in advance for:
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay
- Statutory Adoption Pay
- Statutory Shared Parental Pay (ShPP)
You can apply up to 4 weeks before you want the first payment
You can find more details here
People Who Can’t Be Trustees
People aged under 18 (16 if your charity is a Company or Charitable Incorporated Organisation (CIO))
People who are disqualified by law (banned) from acting as charity trustees, including anyone who:
- has an unspent conviction for an offence involving dishonesty or deception
- is currently declared bankrupt (or is subject to bankruptcy restrictions or an interim order) or has an individual voluntary arrangement (IVA) with creditors
- is disqualified from being a company director
- has previously been removed as a trustee by either the Charity Commission or the High Court due to misconduct or mismanagement
- is disqualified from being a trustee by an order of the Charity Commission under section 181A of the Charities Act 2011
While a person is disqualified they will also be disqualified from holding positions with senior management functions (whether paid or unpaid) within the charity or charities concerned, unless the commission includes an exception in the disqualification order that this is not the case.
You can search the register of Removed Trustees here