Our Spring Newsletter should have arrived with you by post – if it hasn’t please let us know by emailing us here, or download it here:
In this edition we cover HMRC Rates and Threshold Changes, Independent Examination of Accounts, Charity Governing Document, Claiming Tax Back on Donations, Gift Aid
You normally need to register as an employer with HM Revenue and Customs (HMRC) when you start employing staff, or using subcontractors for construction work.
You must register even if you’re only employing yourself, for example as the only director of a limited company.
You must register before the first payday. It usually takes up to 5 days to get your employer PAYE reference number. You can’t register more than 2 months before you start paying people.
If your business starts employing people on or after 6 April, you’ll get your employer PAYE reference number by 17 May.
To pay an employee before you get your employer PAYE reference number, you should:
What you can reclaimAs an employer, you can usually reclaim 92% of employees’ Statutory Maternity (SMP), Paternity, Adoption and Shared Parental Pay.
You can reclaim 103% if your business qualifies for Small Employers’ Relief. You get this if you paid £45,000 or less in Class 1 National Insurance (ignoring any reductions like Employment Allowance) in the last complete tax year before:
Calculate how much you’ll get back using your payroll software. To reclaim the payments, include them in an Employer Payment Summary (EPS) to HM Revenue and Customs (HMRC).
You can write to the PAYE Employer Office to ask for a repayment if you can’t set off the payments against the current year’s liabilities. You can’t do this until the start of the next tax year.
National Insurance Contributions and Employers Office
HM Revenue and Customs
BX9 1BX
Complete and return an SP32 form to HMRC if you didn’t submit your PAYE information in real time (RTI) for a previous tax year.
Is your group run by a management committee? Then you need to be aware that you hold the same responsibilities as a charity trustee when handling money that does not belong to you personally.
Well regulated accounts will show all day-to-day entries for all money received or spent, showing what the money was spent on, or received for, during the group’s financial year.
Many groups run their financial years to begin on April 1st and end on 31st March the following year, but different dates may be chosen if more appropriate to your group’s activities (eg matching the season if a sports group, or school year if it involves young children)
All financial records should be kept for six years
If you need help in setting up or modifying your accounting system, please get in touch here
Learn My Way is the online learning platform built by Good Things Foundation to make getting online easy.
The website contains over 30 free courses designed to help beginners get started with the online basics – using a mouse, keyboard, setting up email accounts and using internet search engines – while also offering plenty to help people continue their journey to develop their digital skills further.
Learners can try the free online courses at home, work their way through with a friend or family member, or go to their local Online Centre for some tailored help and guidance.
The site offers more advanced learners the opportunity to progress on to further skills, including courses to help them become confident users of online health services, manage their finances, and a guide to use Universal Jobmatch and gain skills for employment.
Minimum Contribution Rates for Workplace Pensions are changing
This table shows the minimum contributions you must pay and the date when they must increase
| Date | Employer minimum contribution | Staff contribution | Total minimum contribution |
|---|---|---|---|
| Until 5 April 2018 | 1% | 1% | 2% |
| 6 April 2018 to 5 April 2019 | 2% | 3% | 5% |
| 6 April 2019 onwards | 3% | 5% | 8% |
More information can be found here, including a letter template to send to staff
Your rights – As an employee you’re allowed time off to deal with an emergency involving a dependant. A dependant could be a spouse, partner, child, grandchild, parent, or someone who depends on you for care.
How much you get – You’re allowed a reasonable amount of time off to deal with the emergency, but there’s no set amount of time as it depends on the situation. Example – If your child falls ill you could take time off to go to the doctor and make care arrangements. Your employer may then ask you to take annual leave or parental leave if you want to look after your child for longer. Tell your employer as soon as possible how much time you’ll need so it can be agreed.
Limits on time off – There are no limits on how many times you can take time off for dependants. Your employer may want to talk to you if they think time off is affecting your work.
Pay – Your employer may pay you for time off to look after dependants but they don’t have to. Check your contract, company handbook or intranet site to see if there are rules about this.
Exceptions – You can’t have time off if you knew about a situation beforehand. For example you wouldn’t be covered if you wanted to take your child to hospital for an appointment. You might get parental leave instead. Check your employment status to see if you’re classed as an ‘employee’.
Compassionate leave – If you aren’t given time off for dependants, your employer may allow you ‘compassionate leave’ – this can be paid or unpaid leave for emergency situations. Check your employment contract, company handbook or intranet for details about compassionate leave.
Company Tax ReturnsYou must complete a Company Tax Return if your charity is a limited company or unincorporated association when this is required by HM Revenue and Customs. You need to include the supplementary pages for charities and community amateur sports clubs (CASCs).
A charity is a limited company if it was set up by a:
Limited companies must also send annual accounts to Companies House. You must complete a tax return when HMRC asks you to, even if no tax is due. You may have to pay a penalty if your tax return is late or you don’t complete one when you should.
If you become an apprentice, you will be paid during your during your apprenticeship. You’re entitled to the National Minimum Wage.
The current minimum wage rate for an apprentice is £3.50 per hour (rising to £3.70 in April 2018)
This rate applies to apprentices under 19 and those aged 19 or over who are in their first year.
You must be paid at least the minimum wage rate for your age if you’re an apprentice aged 19 or over and have completed your first year.
| Year | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| April 2017 (current) | £7.05 | £5.60 | £4.05 | £3.50 |
| From April 2018 | £7.38 | £5.90 | £4.20 | £3.70 |
Check your charity’s governing document to see if it has a procedure for removing trustees.
You usually need a good reason to remove a trustee, such as if they have done something that damages your charity’s reputation.
If your charity is a company, you have the right to remove a director, providing you follow the correct procedures. You have this right under the Companies Act 2006, regardless of what else is written in your articles of association.
You can hold a vote of no confidence to encourage someone to resign as a trustee. This could be part of your charity’s rules for removing a trustee, or written into its governing document. If it isn’t part of your charity’s rules, the vote has no legal power and the trustee won’t have to resign.