Switching payroll providers made easy.

If you have answered yes to the questions above then it may be time to begin looking for a new payroll provider. 

Here at Chrysalis we make switching providers simple.  It can take place at any point in the tax year, and is done at no extra cost to your business, and what’s better, it can be done in as little as four straightforward steps.

As a small business owner it is important that your payroll is kept in order. Not only is this a necessary part of keeping your business compliant, it will also help keep your staff happy if done correctly.  Many people believe transferring payroll providers is a complicated frustrating task, but it doesn’t have to be.  Our aim is to make things simple for you.  We have listed the four steps below on how easy it could be to switch to Chrysalis.

Step 1:  Getting started 

Contact one of our experts and we will work with you to deliver an uncomplicated solution that is the right fit for your business.

Step 2:  What we need from you 

To get started we can need as little as a back up or a few reports.  One of our experts will guide you through what we need, for example: personal data for employees such as names and address and their P11 data.  Our expert can even communicate with your current provider to gather this information for you.    We will then take the time to understand what is involved within your payroll and get to work straight away.

Step 3: Contact your provider 

Let your provider know you are leaving them.

Step 4: Let us do the rest 

We will then set everything up, which can take as little as a few days,  once complete we will be ready to process your payroll. 

This pain free solution to switching providers is quick and easy, and will save you both time and money.  Allowing you to focus on what's important for your business whilst we get payroll right.   To find out how you can switch to us today you can contact us at; 

Web:   www.chrysalispayrollandaccounts.co.uk

Email: info@chrysalispayroll.co.uk 

Call:    0191 673 0062

Merry Chirstmas from Chrysalis

As we are in full flow of the Christmas spirit as I sit here and sing out loud Christmas songs that I don’t even know all the words too, I would like to take this opportunity to wish you all a very Merry Christmas and a huge thank you for all your support this year.  Everyone at Chrysalis hopes it is a very enjoyable one, whatever you may be doing.

Rather than send out Christmas cards that get lost in the business rush of this time of year, or don’t get to you till the New Year, the Chrysalis payroll team have used the money normally spent on them and donated essentials to a local food bank in our area – Hospitality and Hope.

I will also take this time just to remind you that the office will be closed from Friday 23^rd December 2016 until Tuesday 3^rd January 2017.

Merry Christmas everyone and a Happy New Year .

The Chrysalis Team.

Autumn Statement

It’s the day after the Autumn Statement, and there have been quite a few changes that may affect your employees, and how payroll is ran.  We’ve compiled these changes into a summary which are detailed below;

Salary Sacrifice

The government is proposing to implement fundamental changes to salary sacrifice, as outlined in the consultation issued earlier this year. However, there are some important alterations to the previous proposals.

With effect from April 2017, the general rule will be that “the tax and employer NIC advantages” will be removed, but pensions, childcare, cycle to work and ultra-low emission cars will be exempt from the changes. Importantly, arrangements which are in place before April 2017 will be protected until April 2018, and arrangements for cars, accommodation and school fees will be protected until April 2021.

This proposal allows some breathing space for the large numbers who would otherwise have been adversely affected in relation to choices that have already been made, or will be made in the next few months, but employers will need to review flexible benefit arrangements to manage both reward strategies and compliance.

Please note - no mention was made in relation to employee NIC advantages being removed and in particular it was disappointing that no mention was made in relation to additional holiday salary sacrifice schemes as being exempt. I suspect the employee NIC advantage was an oversight and this too will be removed, unless an exempt scheme is involved.

Accordingly, we must for the meantime assume that any tax and employer NIC advantages of these schemes will disappear in due course, although if we become aware of any changes we will of course communicate these to you in another summary.

Termination Payments

Following the consultation this year, it is confirmed that employer NIC will apply to termination payments above £30,000 (in line with income tax). In addition, pay in lieu of notice will be subject to tax generally, amending the current situation where it depends on the specific contractual terms. It appears the pay in lieu change will, however, only affect “basic” pay, rather than the wider changes affecting all earnings which had been proposed, and would have been complex to administer.

These changes will be implemented from April 2018 and will no doubt need to be taken into consideration when structuring some of the larger termination payments.

National Minimum Wage (NWM)/National Living Wage (NWL)

The government confirmed that NLW rates will increase in April 2017, however they also confirmed that NMW rates will also increase at this point in time too. It wasn’t clear whether NMW rates will increase further in October 2017, or whether any changes will now take place in April of each year.

In addition, the government had outlined plans to invest a further £4.3m in their NMW Enforcement teams, allowing them to take a more proactive approach in raising awareness and targeting sectors where failures are deemed to occur.

PAYE Settlement Agreements

The government has said it will legislate to simplify the process of applying for and agreeing PSAs, to come into effect from April 2018, following the consultation this year. Further details are awaited.

Employee Benefits and Expenses

Several changes are being proposed and consulted on in relation to benefits and expenses:

• From April 2017, the rules relating to “making good” benefits will be simplified and made more consistent, in line with the consultation earlier this year. Payment will need to be made by the employee by 6 July to reduce the taxable value of the benefit
• Legislation on assets made available for private use will be clarified with effect from April 2017, so that employees are only taxed for the period the asset is available
• The government will consider how benefits in kind are valued for tax purposes, publishing a consultation on employer-provided living accommodation and a call for evidence on the valuation of all other benefits in kind at Budget 2017
• There will be a call for evidence at Budget 2017 on the use of the income tax relief for employees’ business expenses, including those that are not reimbursed by their employer – previously HMRC was considering changing the rules so that there would be no tax relief unless the employer reimbursed the expense.

Off-payroll working

As expected, new rules for the public sector will apply from April 2017, which will give the engager (or agency) responsibility to apply PAYE where a personal service company is engaged and “IR35” deemed employment rules would apply. The 5% tax-free allowance which normally applies for IR35 will not apply.

It remains to be seen whether these changes will be applied to the private sector in due course. The Chancellor in his speech stated “…the OBR has today highlighted the growing cost to the Exchequer of incorporation. So, the government will consider how we can ensure that the taxation of different ways of working is fair between different individuals, and sustains the tax-base as the economy undergoes rapid change. We will consult in due course on any proposed changes.”

Tax/NIC rates

Some adjustments are proposed to tax/NIC rates and thresholds. Details can be found here: https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2017-18/tax-and-tax-credit-rates-and-thresholds-for-2017-18#national-insurance-contributions-nic

If you have any questions on what you have just read, or how it might affect you, then don't hesitate to contact us.  You can email info@chrysalispayroll.co.uk or call 0191 673 0062. 

Increase in Automatic Enrolment contribution rates.

Automatic Enrolment has placed an increase on employer costs for many businesses across the UK. Automatic Enrolment can include some or maybe all of the following costs for a business.

• Payroll costs (additional processing/software subscription costs)
• Assessment costs if not included in software
• Pension contributions
• Communication costs
• Additional administrative support
• Financial advice
• Pension provider costs

With Automatic Enrolment being law, it is required that employers legally offer a qualifying scheme and contribute into it for any worker that is eligible to be enrolled, or any worker that chooses to opt in (please not for any entitled workers that choose to join, you as an employer do not need to contribute.)  At present, contributions are set to a minimum of 2%, with 1% coming from the employee, and the other 1% from the employer.

However, from 5^th April 2018, these contributions are set to rise to a new minimum, and then will do so again from 6^th April 2019. This will mean an extra cost to employers.  Below we have listed the minimum contribution rates for both the employer and employee over the next couple of years.

Up to April 5th 2018

• 2% of qualifying earnings must be paid as minimum contributions. This is made up of 1% each from both the employee and employer.

April 6th 2018 - April 5th 2019

• The minimum contribution will rise to 5% minimum, with 2% from the employer and 3% coming from the employee.

April 6th 2019 onward

• The minimum contribution amount will be set at 8%, with the employer contributing 3% and 5% employee contribution.

For each of the three increases, the employer will contribute 1%, 2% and 3%, with the employee making up the remainder. These increases are nothing new, from the very start when Automatic Enrolment was introduced, these figures have been the required minimum.

Are you prepared for Automatic Enrolment?

Every small business is set to have staged for Automatic Enrolment by the end of 2018. Along with other administration costs AE can place, employers have to prepared for the effects it will have on their business and think how they intend to meet these requirements, that’s why we are here to help.

With Chrysalis Payroll and Accounting Solutions, these worries would be none existent. Our Automatic Enrolment solutions will save your business both time and money. Our comprehensive knowledge of this legislative change which comes from being trained by the worlds largest software provider of payroll and accounts, and also from the The Pensions Regulator themselves, means we can offer these solutions to our customers compleley free of charge. Meaning no aministration costs, or costly support charges, we get rid of all other costs of AE and leave you just with the contribtuions ammounts.  With these contributions setting to rise very soon, now is a great time to get on board.  We will do everything for you, from the set up, right through to the ongoing processing and communications with both employees and pension proivders.

If you want more information on how we could help you, you can contact us on; 0191 673 0062 or email info@chrysalispayroll.co.uk

Increase in Automatic Enrolment fines for non compliance.

Automatic Enrolment will soon be hitting all small businesses across the UK.  By 2018, even if you just employ one person, you will need to comply with the legislation surrounding this pension reform.  Many small businesses are being asked to prepare and be aware of their duties, as avoiding Automatic Enrolment can be costly. How much Automatic Enrolment can cost for non compliance have been shown by the latest figures released by The Pensions Regulator.

The figures for the quarter 1st July to 30th September 2016 shows there has been a huge rise in the number of notices and penalties issued to employers for non-compliance with Automatic Enrolment.  The statistics of this quarter are shown below.

·         15,073 compliance notices have been sent out to employers, this is an increase of over 344% from the last quarter where only 3,392 were issued.

·         3,728 fixed penalty notices of £400 have been issued, which is an increase of over 332% on last quarter, where only 861 were sent.

·         576 escalating penalty notices have also been sent.

An escalating penalty is where previous compliance notices have been ignored so The Pensions Regulator acts.  They are dependent upon the size of the employer and can carry a daily fine ranging between £50 and £10,000 per day.

An increase of small employers staging throughout 2017, who are complying with these duties  has shown a dramatic increase in compliance fines sent out by the TPR.  The demands to comply with the legal requirement set by Automatic Enrolment has shown to been difficult, with most employers stating that, illness, being short staffed and confusion about their duties have been the main cause for this.

The Pensions Regulator have stated that explanations given by employers such as these, are not a 'reasonable excuse'. 

Automatic Enrolment was introduced in 2012 and The Pensions Regulator have made it clear from the start that it is the law, and employers must comply with these duties.  Since this date the number of penalties that have been sent out are the following.

• 741 escalating penalty notices

• 26,040 compliance notices

• 6,779 fixed penalty notices.

We are here to help.  We know that Automatic Enrolment can be confusing to employers.  Therefore, we are now including our Automatic Enrolment solutions as part of our payroll services process

.

This means there is no extra cost for us to take on these duties for you. We will send out the communication to your employees, continue with ongoing processing, and even communicate to third parties, such as The Pensions Regulator and pension providers.

Don’t become one of these statistics, let us help you today. 

Tax Free Childcare

Tax-Free Childcare (TFC) has become a hot topic for employers and employees. Replacing the existing Childcare Voucher scheme in early 2017, Tax-Free Childcare will be available to around 2 million households to help with the cost of childcare.

Parents will be able to pay money into their Tax Free Childcare account and the government will top up the account with 20% of childcare costs up to a total of £10,000, the equivalent of up to £2,000 per child per year (or £4,000 for disabled children). 

This will be applicable for children up to the age of 12 although the scheme will be applicable to children with disabilities up to the age of 17.

As the new scheme is not employer supported, self-employed workers are eligible and can also benefit.

But, how does Tax-Free Childcare work? How does it differ from the existing Childcare Voucher Scheme? And what does it mean for employers and employees?

With the scheme launching 2017 it will be gradually rolled out to families, with parents of the youngest children able to apply first. 

Many questions are being asked, so we have created a few FAQs for you to get your head around it.

What will happen to the current Childcare Voucher Scheme?

The current system will remain in place for those parents who are currently using it, but parents will no longer be able to join the existing scheme from April 2018.

How is the money paid?

Parents will be able to open an online account, which they can pay directly into to cover the cost of childcare with their chosen registered provider. The online accounts will be available through the government website, gov.uk.

How much will the government contribute?

For every 80p you or someone else pays in, the government will add an additional 20p. The 20p top up is equivalent to the tax most people pay (20%).  The government will top up the account with 20% of childcare costs up to a total of £10,000, which is the equivalent of up to £2,000 per child per year (or £4,000 for disabled children).

What is the eligibility criteria for Tax-Free Childcare?

To qualify, parents must be in work, and each earn around £115 per week, and no more than £100,000 each per year.

To get the new Tax Free Childcare support, both parents in a two-parent household should be working, or the lone parent in a single parent household. Parents need to be working for a minimum of 16 hours per week.

For the first time, self-employed parents will have also access to the Tax Free Childcare support. 

Parents who are claiming tax credits or Universal Credit will not be able to claim under the new system.

The scheme will also be available to parents on paid sick leave and paid and unpaid statutory maternity, paternity and adoption leave.

How old can my children be?

The scheme is available for children up to the age of 12. It will also be available for children with disabilities up to the age of 17.

What will happen to the existing Childcare Voucher scheme?

The current Childcare Voucher scheme will be closed to new joiners from early 2017, and new parents wishing to join will be enrolled on the new scheme.

What happens if I use a workplace nursery?

Employers’ Workplace Nurseries are not affected by the new TFC scheme.

What scheme am I better of using?

Some parents will make greater financial savings on the existing Childcare Voucher scheme, while others will make greater savings by switching to the new TFC when it comes into effect.

If you have the choice between schemes and to find out which will provide greater savings for your family, a Childcare Savings Calculator can be found at the following link http://www.tax-free-childcare.info/childcare-savings-calculator/

What happens once on the new scheme?

Once you are registered, you can pay into your childcare account as and when you like.  Other family members, friends and employers can pay into the account too if they wish which gives you greater flexibility to pay more in some months.

You can also build up the balance in the account for times when you may need additional support with childcare for example – summer holidays.

Will the process be simple?

The process will be as simple as possible, you will re-confirm your circumstances every 3 months via a simple online process, and there will also be a simple log in service where parents can view accounts for all their children at once.

Can I withdraw money from my account?

If you have paid more than intended or your circumstances change you wish to withdraw money from the account, you will be able to do so. The government will also withdraw its corresponding top-up contribution. 

We hope this has been helpful for you and if you have any more questions, either employer or employee feel free to contact us on info@chrysalispayroll.co.uk.

Auto Enrolment - Employing seasonal or temporary staff

With Christmas fast approaching, now is the time that companies start employing seasonal workers, to help with the increased work load.  This is great for companies who are looking for a short term solution to the increased pressure that is Christmas, but if you are an employer, there is one thing you need to consider, and that is Auto Enrolment.

If you employ seasonal or temporary staff you must assess the worker individually every time you pay them, no matter how many hours they work.  

Whilst assessing these members of staff there are a few things to consider before you automatically enrol them into the pension scheme if they qualify, these are as follows; 

• They may qualify for the pension scheme and then leave employment with yourselves shortly afterwards.
• Their earnings will regularly change due to the hours they work with you.
• What should you as an employer contribute into their scheme.

The temporary staff will be assessed and treated the same as any other permanent staff member, whether they qualify to be enrolled into the scheme is still dependant upon their age and how much they earn.  Any staff member aged between 22 to state pension age who earns over £192 a week, £833 a month must be automatically enrolled into a qualifying pension scheme which you must pay into. 

The Pensions Regulator has created a seasonal and temporary staff tool to work out what legal duties will apply to you and what you'll need to do.  It's a brilliant tool so if you are struggling I would advise to have a look.

There are also numerous things that can help when you are assessing staff.  
 
Payroll software

Having the right payroll software can really help if you have seasonal or temporary staff, or staff with fluctuating hours and earnings on a regular basis.  Although most payroll software that is set up for Automatic Enrolment requires and extra add on to your subscription, which can sometimes be costly, there is some software out there that is it inclusively built in.

Most payroll software that is set up for automatic enrolment will assess staff at each pay cycle, calculate contributions where necessary, and some also have a postponement function built into it.

Pension Schemes

Pension schemes may also offer services that could help you.  Some can help you to assess employees and will also calculate both employee and employer contributions.  You may have to write to your staff individually about the changes that are due to happen, but some schemes may also help you with them.  You can find more information on choosing a pension scheme by clicking the link.

Using postponement
If you aren't sure on how long your temporary staff will be working for you, or you know they are only staying for a short period of time, The Pensions Regulator will allow you to delay the enrolment of that worker for up to three months. This is called postponement.  

If you have a temporary staff member that is eligible to be enrolled into the pension scheme as they hit all the specific criteria, you can choose to apply an eligible postponement.  This means you will delay the enrolment period for up to three months.  Allowing you to then assess them again after that three month period is up.

 A letter must be sent within six weeks from the date after postponement starts to notify them of this, you must write to staff individually to tell them that you are postponing them and how automatic enrolment will affect them, giving them the option to opt in.  

This means during any staff member’s period of postponement, you won’t need to put them into a pension scheme unless they expressly ask to be put into one.

You can find out more about using postponement on the Pensions Regulator website. 

Outsourcing Auto Enrolment 

If all this still sounds very complicated for you as an employer, you do also have the option to outsource Auto Enrolment.  There are many bureaus out there who would be happy to take Auto Enrolment of your hands.  The prices of these bureaus vary, and with Automatic Enrolment being law, bureaus know that employers have to undergo these duties and that employers will be turning to professionals for help.  

Here at Chrysalis payroll we are different from any other bureau, we understand that Auto Enrolment can sometimes be difficult and that you have no way of avoiding it.  That is why we offer our Auto Enrolment outsourcing solution completely free.  There are no set up fees and no processing fees when taken out with our payroll service contract. 

We will undergo all your Auto Enrolment duties for you, from the individual letters you need to send, to your Declaration of Compliance,  If you want more information on the services we offer you can find us at www.chrysalispayroll.co.uk 

You can also email info@chrysalispayroll.co.uk or call 0191 673 0062 to speak to one of our Auto Enrolment specialists today. 

Things i wish i knew before starting my own business

I skipped out of Sage Software throwing myself into the world of ‘grown up’ as I quit my payroll and accounts support job ready to start my own business. I was full of beans and surrounded by people telling me I had the skills to exceed and I felt it was the perfect time to take the leap and start my own business. I was now doing what I wanted to do, I was my own boss. Meaning I oversaw what happened next in my life, the boss of my own financial future, not certain on when my next ‘pay day’ would come, and wow……... was that a scary thought!

My optimism kept me afloat at first, but it quickly changed and I kept being flung between fear and despair, bouncing back to the occasional euphoric state when the phone used to ring with a potential lead, but I was slowly but surely forced off the train on the road to being a multi-millionaire and onto the sinking ship that was the Titanic!

When I look back on It now, I had no idea what I was doing, no clue to know whether the actions I had been taking were any good. No clue about options that could have made my life easier, and I didn’t know how I was going to pay my bills next month.

This meant I had to be a quick learner and I was not afraid of putting the hours in. There were countless hours of webinar watching, scrolling through google for tips and techniques and I must have read a million blogs. There were numerous weekends researching ‘how to run a successful business’, and teaching myself everything I could about building a website and search engine optimisation, but there were just some things I didn’t get at all, SEO being one of them, that is some mind field, and I’m not ashamed to say my first website was a complete flop!

I kept asking myself, ‘how do I get customers?’ I’m one of the best in my field, so why aren’t they just falling at my feet? The reality being I had to fall on my face first. I had to produce the degree in life survival every entrepreneur must learn on their ‘journey’, and worse still, I had to listen to my dad! I had to do that dreaded thing he had been telling me about for the last 20 years, I had to learn how to ‘budget’.

I soon came to realise that things weren’t just going to happen overnight; it was going to take time. I had heard of the ‘two-year rule’ but I learnt to accept that even small progress was still progress.

With this being the case here are five things I wish I knew when I started my business. I hope they will save you some time, but at the very least some hours you don’t have to spend scrolling through google.

NUMBER 1 – YOU WILL SPEND MOST OF YOUR TIME WEARING DIFFERENT HATS

Doing what you love, and what your business does, is not how you will spend most of your time. You’re the best in your market I hear you say? That’s great, but the reality if it all is you will spend 10% of your time doing what you love and 90% of the time marketing, selling, administrative tasks, and answering a ton of phone calls about whether your business is using the right energy provider or not. These new hats you must wear is challenging and sometimes they don’t fit, and this seemed to be the case for me. It was tough as I knew nothing about marketing or selling and I certainly didn’t know the logistics behind a business. I wanted nothing to do with running that side of the business, I didn’t want to have to fill in confusing HMRC forms and I definitely didn’t want to sell things. I just wanted to what I loved, I wanted to process customer’s payroll and become the superhero of the Auto Enrolment world, I didn’t get it

NUMBER 2 – YOU WILL BECOME YOUR BEST FRIEND

Entrepreneurship is the biggest roller-coaster that you will ever go on. You will come face to face with any insecurity you have ever had, you will realise how bad you were at time management and public speaking and your biggest fear of failing will hit you right in the face. You will learn to accept this, and the outcome will be most definitely worth it. Throughout this roller-coaster you will get up every day and face these insecurities every day, because you must get up, if you don’t your business won’t run and you won’t create a profit.

Somehow through that process of acceptance, while you’re busy putting yourself out there despite your flaws, them weaknesses you once had, will soon start to develop into something truly amazing, giving you the best intrinsic reward possible, you will become proud of yourself, you will think, I did that.

NUMBER 3 – IT WILL TAKE TIME AND YOU WILL RUN OUT OF MONEY

Even though you are an expert in what you do, and you have a business model that is great, your success won’t just happen overnight. Like I said earlier, many people had told me about the ‘two year’ rule. It takes two years to develop a business they all said, but I didn’t want to wait that long, I wanted it to happen NOW! I was throwing everything into this business, working all hours, it was a huge jump to leave a successful job and try to do what I was doing, surely that was worth some credit?

Although this was the case, unfortunately the big man in charge up there had other plans. I had secured a customer and believed it was the beginning of something magical, then it happens, you don’t expect it too as you have planned accordingly, but you find out you need some form of business insurance you don’t have, the computer you have been using decides to blow up and you can’t secure the business loan you desperately need.

Surely this is bad news? Yes, yes, it is, the whole business is going to come crashing down you cry, but the good news is, you don’t give up, you pick yourself back up and you become unstoppable. You bring yourself to construct your next tweet, write your new blog post and go see that one customer who believes in you.

The irony of the situation is, it makes you realise why you are doing what you are doing. No matter what the world of business throws at you, you will tackle these obstacles and come out on top, you would work for free if you had too. This proves you are in the right business and you truly love what you do. Nothing can stop you.

NUMBER 4 – YOU WILL LEARN FROM MISTAKES

Spend less time researching and more time doing should be a new motto. Researching, studying, reading other people’s blogs is a form of learning, but why not go write your own blog post? It might flop yes, but what if it isn’t? The ‘doing’ aspect allows you to see what engages your customers and more importantly what works within your sector. Being successful does not come by learning more, it comes by jumping in with your instincts and putting yourself out there, even if you don’t know exactly what you’re doing. Take the risk, block out all distractions and get something done, even though at times you will have no idea whether it will work, in the long run you will crack it, even the most successful business owners started from the bottom and are still learning from their mistakes.

NUMBER 5 – YOU MUST LEARN HOW TO MARKET

Although it sounds daunting you must put a lot of effort into become a successful marketer. I know we all just want to do what we love but if you don’t spend time marketing you will not make any money, nobody will know who you are for a start. This was my biggest weakness when I started, I didn’t know how to market, and I am still learning now.

I had gone to a few meetings at Sage about social media, so knew that might help somehow, but how to do it, I didn’t have a clue! I thought because I knew my stuff and had found a business model that was different to my competitors, customers would just come flocking in. The reality of that is that they don’t, its hard work and it takes time, and if you believe that they will, you will be eating beans on toast for a long time!

You need to remember that you are a new business, why should said customers trust you? You need to market. Show them you are a trustworthy source, give them valuable bits of information for free.

Learn what way you like to market and stick to that and do it consistently and often. Keeping your website fresh and current is essential in your marketing, so learn how to work WordPress and learn some HTML code and if you are very brave, take a jump into the world of SEO.

Now go do it, go set up that business you have dreamed about, just one last bit of advice, never give up.

We have moved!

Welcome to our new home

Welcome to our new home!  G1a Stephenson, Prestwick Park, developed on the country estate of open farmland and formal gardens surrounding Prestwick Hall, right next to Newcastle Airport.  We have a vision to turn this amazing building into a truly creative space that will become our permanent home.  This is a really exciting chapter in the life of our business.   From day one, we have always had the ambition to own a huge practice and help business owners from every sector, grow and develop by giving them the tools and time to focus on what’s important to their business, by just taking away the stresses of payroll and accounts.

It’s hard to believe that just over four years ago, we were still working within Sage Software, helping customers struggle through the pitfalls and troubles that Auto-Enrolment and constant legislation changes within payroll were causing them. 

We then took the plunge to go out into the big wide world to try and help them even more, by taking payroll and Auto-Enrolment of their hands.  Turning the box room in my house into our office with nothing more than a cheap laptop and a vision to create a great business, we started the journey, and now a crazy year later, we have re-branded, changed into a limited company, got our very own home and are processing payrolls for companies the size of Sage! It’s crazy!  But, it’s not just the office at Prestwick Park that will be getting some TLC.

Following this exciting year, Chrysalis Payroll and Accounting Solutions has also launched its brand new website dedicated to our payroll and accounting outsourcing division, showing off our new image and services.

With Auto Enrolment now affecting 960,000 employers, and by 2018 every small business will have staged, we thought it would be a great time to make sure our clients are aware of the setup and services we have to offer.  With so much happening in legislation over recent years, plenty of companies are now choosing to outsource their payroll and gain help on subjects such as pensions, and we aren’t like every other payroll bureau.  Not only do we offer wide range of flexible solutions we also have training options you can take advantage of too, due to our background within this sector, we have the knowledge and expertise to offer you these services at a fraction of the cost,  and we are so excited to be right in the middle of it all, helping you to get it right.

We’ll be posting regularly to keep you up to date with the development of Prestwick Park, so pop back to see how we’re getting on.

In the meantime, here are some ‘before’ pictures.

Wish us luck!

5 frustrating things about running payroll yourself

If you run a business, you know that every month you will have to stop doing the fun stuff that you’re passionate about and do the payroll, ‘Yeah, I get to do the payroll this Friday!’ is what many a business owner will cheer!

Unless you love payroll (and run a payroll business like we do), odds are you didn’t start your business in order to manage and run one, but it’s a necessary evil that keeps that has to be done legally.

So what we thought we would do is comply a list together of the five most annoying things and publish it just as you’re about to tackle the mammoth job of processing it, just to remind you why we are here!  So here is the list, you may be able to relate to some of them.

1 – PAYE FINES

Last year, the government earned over £700 million in fines thanks to PAYE and payroll errors (you can also check out our blog about the top ten mistakes and how to avoid them to cut down on some of them costs).  Whether due to lateness or incorrect calculations, getting a fine from the government has a serious impact on a business and could potentially close down a small one.

2 – WHEN THE ONE PAYROLL EXPERT IN THE COMPANY IS ILL OR GONE ON HOLIDAY

Learning how to properly manage and process a smooth pay run is complex and time consuming. Small businesses often only have one person to do the payroll. When that vital person is off sick at a crucial payroll time, paying staff becomes very challenging and the whole payroll world can come crashing down.

This is why outsourcing has its benefits, we can take your payroll of your hands and give you the benefit of an experienced payroll department for the fraction of the cost (from £1.50 per employee) where no one will ever be off sick!

3 – DATA ENTRY

Not only is data entry tedious and unrewarding, little mistakes can lead to big problems. One mistake when inputting an employee’s bank details can lead to you accidentally paying someone else, one incorrect input of an invoice can be hours or reconciling and not knowing why.

4 – KEEPING UP WITH THE CHANGES

Constant legislation and compliance changes, plus HMRC guidelines happen regularly, more so during the government’s budget announcements, and the regular payroll year end updates. We have seen some of the biggest changes in payroll in the past few years, including auto-enrolment, RTI and the introduction of the new living wage.  These challenges businesses face in meeting theses deadlines and complying with new legal duties are a very time consuming task.

 5 – PAYROLL IS NEVER UNIFORM

Every month there is something that has changed from last month’s pay run.  Shelia has worked extra hours this weekend as it’s the little one’s birthday or yourself as a business have seen a massive drive in sales. The idea of a payroll that follows a “set and forget” policy just won’t work, especially now with the introduction of Auto Enrolment, as you will now have to constantly assess your employees each pay period.

Take the sting out of payroll by outsourcing all these little annoyances to the professionals, to us! With your payroll safe in the hands of a company you can trust, you can get back to the business of, well, running your business and doing what you love to do.  Leave the payroll to us www.chrysalispayrollandaccounts.co.uk 

Ten most common payroll mistakes

For many people managing an efficient and smooth-running payroll system is a daunting and a time consuming prospect. The responsibilities and highly administrative tasks involved, such as paying employees and filling in government forms is stressful and made worse by the constant legislative changes and HMRC guidelines.

So it’s no surprise that payroll errors are a common thing within businesses.  These errors can have a detrimental and costly effect on both staff and the employers. If your business is struggling with the demands of payroll, it can be helpful understanding what kind of mistakes are made and exactly how to avoid them.

Here is a list of 10 of the most common payroll mistakes made by businesses to be aware of.

·    Missing deadlines -  Missing filing deadlines set by HMRC can be very costly for a business. You should mark on a calendar all the necessary dates so you can be sure not to miss them.

     Depending too much on the payroll system used -  The Payroll system used can only be as good as the person using it. Ensure that all relevant data is entered correctly and efficiently, so that the system can calculate everything correctly, and also make sure you update the software each year for new legislation if it isn’t cloud based.

·    Not keeping records -  You need to keep records of Payroll according to HMRC guidelines. HMRC requires all UK businesses to maintain accurate and detailed records for the current and three previous tax years. Not complying with these guidelines can be very costly for businesses and can result in a hefty £3,000 fine

·    Not having adequate backup -  You should always back up your records so that vital information cannot be lost if an error was to occur.  Some payroll systems can do this for you automatically, but if not, always have a backup.

·    Inexperienced staff -  The person doing payroll needs to know how to do it properly. Managing payroll in-house requires highly trained personnel who have the relevant expertise, knowledge and qualifications to ensure payroll is processed accurately and on time. Inexperienced staff may be incapable of complying with current legislation such as RTI and auto-enrolment, and could make incorrect employee deductions.

·    Dealing with statutory payments -  This can be confusing if you do not understand the legislation correctly.  You can find all the information you need on gov.uk

·     Processing payroll late-  Paying your employees late will cause you and your staff a great deal of unhappiness.  It’s one of the main reasons why an employee will choose to leave a company.

·     Using the wrong tax code -  The tax code should come from the P45 or failing that a P46 should be completed but may employers will just use a code they are familiar with, meaning the employee could pay the incorrect tax which could then have a negative effect on their wages.

·    Under/ over payments to staff -  You always need to check exactly what your staff should be paid in that particular period, it’s an error which can be very costly and time consuming to correct. If these payroll processing mistakes persist, you could be seriously affecting staff morale and motivation, causing their motivation and productivity to drop.

·    Year End submission mistakes -  This is normally caused by mistakes during the year but also lack of knowledge of how to complete this process.  This process is now a lot simpler due to the introduction of RTI.

HOW TO AVOID COMMON PAYROLL ERRORS

Choose the right payroll solution

Having the right payroll solution is key to an efficiently ran payroll, make sure you choose a payroll solution that meets the size and shape of your workforce and not get sucked into purchasing costly subscriptions for software or outsourcing prices which aren’t manageable.  The key is to find a supplier who can give you a flexible and tailored solution that is right for you now, but a company that can also grow and develop with your business needs.

Hire qualified staff

If you want to run your payroll system in-house, dedicate time and resources to hiring adequately trained staff who are up to date with current legislation and have the expertise to run a smooth payroll. Regular training is also essential, as although these people may be experts when it comes to payroll, they don’t know how you calculate employees pay as every company is different.  Spend the time training them on this so no mistakes are made. If you employ an outsourced provider, ensure they can provide expert help and guidance so that you’re always on top of payroll legislation and changes, so you can still be in control.

Payroll outsourcing

Payroll outsourcing is an increasingly popular solution for any business that wants complete assurance that their payroll is being calculated correctly. At Chrysalis Payroll we specialise in providing tailored payroll outsourcing solutions, giving you the benefits of a specialised in house payroll department, at the fraction of the cost. With our expertise, software and our dedication to work with you as a company, we can ensure fast, reliable and secure payroll processing which is on time every time, and what’s better, we will even save you time and money.  Go to our Payroll Services page to find out our pricing structure and more.