As soon as you start to think about your business, a bookkeeper can help you take the next steps. At River Bookkeeping & Payroll Ltd we can put you in contact with a suitability qualified accountant and together we can discuss your business's organisation tax purposes and operations, along with target pricing and profit margins.
Get some impartial advice from us about if you really need to sign up to a bookkeeping package it may be that we can include the price of the software licence in our fee.
Does your bookkeeper or accountant return your calls? Do you feel comfortable asking them a question? Do you feel heard? With the right bookkeeper and accountant the answers should be a resounding "Yes!"
• Employees Must be Paid the Minimum wage depending on age,
Hourly rates as at April 2020 are
o Under 18 £4.55
o 18 – 20 £6.45
o 21 – 24 £8.20
o 25 and over £8.72
o Apprentice £4.15 - See Notes below Note
The rates increase in April every year
• Employers must pay Employers National Insurance (Class 1 National Insurance) on earnings above £169.00 Per Week / £732.00 Per Month at 13.08% - Note you may be eligible to Employment Allowance.
• Employers must pay Employers Pension Contributions at 3% on earnings over £120.00 per week / £520.00 per month. BUT only if the employee opts in to the workplace pension scheme, If you do not have one you must set one up we can help with that,
• Employers Liability Insurance to be taken out.
• Contract of employment must be given to the employee; it is best practice to give this to the employee by the first day of working
• Right too work in the UK must be checked
• Holiday pay to be paid at the equivalent of 28 days a year including bank holidays from day one of employment
• Statutory Sick Pay must to be paid to employees earning over £120.00 per week. This is not reclaimable from HMRC
• Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay must be paid to eligible employees this is reclaimable from HMRC.
• If you have 5 plus employees then you will need to have statutory policies i.e., H&S, Disciplinary and Grievance.
A PAYE scheme will need to opened with HMRC if you are paying your employees more than £120.00 per week / £520.00 per month, - Note as soon as 1 employee is paid more than £120.00 per week then all employees must be added to the PAYE scheme and be included in the filing submissions to HMRC irrespective of how much their earnings are
If you are thinking of taking on staff there are requirements that must be met. At River Bookkeeping we work with Solutions HR for Employment Contracts and all other things employee related that’s not payroll, here’s a freebie from them that they have for businesses who are ready to grow their team. All you need to do is subscribe and you will receive a 7 steps to growing your team booklet – it includes all the things you need to consider such as finances, insurance, tax, contracts etc…. https://www.subscribepage.com/readytogrowyourteam
Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £4,000.You’ll pay less employers’ Class 1 National Insurance each time you run your payroll until the £4,000 has gone or the tax year ends (whichever is sooner).You can only claim against your employers’ Class 1 National Insurance liability up to a maximum of £4,000 each tax year. You can still claim the allowance if your liability was less than £4,000 a year.
Apprentices are aged 16 or over and combine working with studying to gain skills and knowledge in a specific job. Apprentices can be new or current employees. You must pay the apprentice at least the minimum wage.
Apprentices are entitled to the apprentice rate if they’re either:
• aged under 19
• aged 19 or over and in the first year of their apprenticeship
Example An apprentice aged 22 in the first year of their apprenticeship is entitled to a minimum hourly rate of £4.15.
Apprentices are entitled to the minimum wage for their age if they both:
• are aged 19 or over
• have completed the first year of their apprenticeship
Example An apprentice aged 22 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £8.20.
More information on employing apprentices can be found on https://www.gov.uk/employing-anapprentice