As recently as the March 2016 budget there was a real groundswell of opinion that the opportunity to make pension contributions via salary exchange (also known as salary sacrifice) was going to be under attack and removed. One quick check on Google will show that it has been almost an annual discussion point in the financial press – ‘the demise of salary exchange in the next budget’.
There has been much talk over the last year about the government’s contempt for salary sacrifice schemes and the actual cost to the Exchequer, and on 10th August 2016 HMRC launched its consultation on salary sacrifice, giving the clearest indication yet of its intentions going forward.
It may have taken some time but finally we have confirmation of the planned changes to auto enrolment contribution rate increases. The 2015 Autumn Statement provided a proposal to push back the original contribution increase dates to help businesses administer changes and align them with the tax years.
Is your business growing internationally? Do you have employees working in different countries? As the world becomes a smaller place we are finding more and more of our clients are working “in” multiple jurisdictions not just exporting services or products abroad.
For many businesses, payroll outsourcing offers an attractive and valuable alternative to in-house processing. Choosing a payroll provider correctly offers a less expensive, more efficient and simpler means of ensuring your employees, HRMC and NI are paid correctly on time, every time. However, choose poorly and your payroll process can result in a full-blown financially induced migraine.
In the historic referendum of 23 June 2016, the UK public voted to leave the European Union (EU). The following period has been filled with political and financial uncertainty, as the country contemplates its future outside the EU. However, one thing seems to be certain: in the words of our new Prime Minister, Theresa May, “Brexit means Brexit”.
What is the Confirmation Statement?
The Confirmation Statement (Form CS01) provides similar information to the annual return, but if no changes have taken place, you can make a declaration to this effect. This means that the process is much simpler.
When you file a CS01 for the first time, there are five parts of the confirmation statement you need to complete. The most fundamental change is the requirement to file information on ‘People with Significant Control (PSCs). Any company incorporated after 30th June 2016 must include PSCs in their initial application.
When must the Confirmation Statement be filed?
If you have an existing company, your first confirmation statement must be filed 12 months after your last annual return and then at least once every 12 months thereafter. An updated statement can be submitted at any time within the 12-month review period and a new review period of 12 months will be set from the date of the most recent confirmation statement.
This rolling 12-month window means that a company can combine the confirmation statement with another filing at any point during the year, if this is administratively easier. Therefore, you can capture key events (such as a change in shareholders) when they happen, rather than having to wait until a later date, when information may have been forgotten.
What is the filing period?
Companies were allowed a period of 28 days from the due date of the annual return to file it with Companies House. This has been reduced to 14 days for the confirmation statement.
If 12 months have elapsed since the last filing of the confirmation statement, a company will therefore only have an additional 14 days to file the next Statement before the company is no longer considered to be compliant. If you fail to deliver the Statement by the end of the 14-day period, you have committed an offence and may be fined.
What is the cost?
A filing fee must be paid when the confirmation statement is delivered. This is the same as for the annual return (£13 online, or £40 on paper). Updates to the information can, however, be made as many times as required throughout the year, without incurring an additional fee.
If you require any assistance with your confirmation statement or in interpreting who should be recorded as a PSC, please talk to your accountant.
For many businesses, payroll outsourcing offers an attractive and valuable alternative to in-house processing. Choosing a payroll provider correctly offers a less expensive, simpler means of ensuring your employees, HRMC and NI are paid correctly on time, every time. However, choosing poorly your payroll process can result in a full-blown financially induced migraine!
No employer wants to lose employees but the contraction in the oil price means that this has become an unfortunate necessity for many businesses.
Preventing bribery should be the concern of every business. It’s also a legal requirement.