Matt Fryer

When hiring a new employee, employers must determine the appropriate tax code and starter declaration for their payroll software. Using incorrect tax codes can result in the new employee over or underpaying their taxes. To ensure the correct information is entered, employers need certain details from the new employee, most of which are usually provided on the employee's P45. It's important to remind new employees to bring their P45 on their first day. #PAYE #Employees

1

1 Comment

Employer Costs Set to Rise Following UK Budget Here are the key changes employers should prepare for: Employer NICs Increase: From 6 April 2025, the Employer National Insurance Contributions (NICs) rate will rise from 13.8% to 15%. Additionally, the threshold for NICs will lower, requiring employers to start paying NICs on employee earnings above £5,000. However, small businesses will benefit from a higher Employment Allowance, increasing from £5,000 to £10,500, allowing eligible employers to offset some of these costs. No Change to Employee Income Tax and NICs Rates: While employee NICs and income tax rates remain unchanged, income tax thresholds are frozen until April 2028, meaning employees may be pulled into higher tax bands, indirectly impacting employer costs and pay planning. Capital Gains Tax (CGT) Increase on Employee Share Plans: The main CGT rates increase from 10% and 20% to 18% and 24% starting 30 October 2024. This change will affect employees with shares from non-tax-advantaged plans, leading to higher tax costs when they sell shares. Employers may face added pressure to offer support or adjust share plan offerings. National Living Wage Increase: The National Living Wage will increase to £12.21 per hour from April 2025, with the National Minimum Wage for 18–20-year-olds rising to £10 per hour. Employers with a large workforce on minimum wage should prepare for higher payroll costs. These budgetary changes will impact payroll expenses, benefit costs, and tax planning for employers. Companies are encouraged to review their workforce budget and compensation structures to account for these adjustments and minimize future cost impacts.

2

WORKING IN PARTNERSHIP. It was great to meet with a new client this morning and be instructed to support them on further growth within the business. In this particular case we are working with an Accountancy Practice on some key hires in - Transactional Services, Tax & Audit. If you work within practice in West Yorkshire and are looking for a Hybrid opportunity then please do reach out we can have a confidential discussion and I can explain further about these roles. It was really great to learn about the business, roles, plans, strategy and direction. What made the meeting (and makes all meetings) a success in my view was the client is open to advice, likes to be challenged, wants to learn about the market and trusts in working within a framework to achieve an outcome. We have agreed some key milestones within this framework so the client is kept updated throughout the process. If you are having challenges in recruitment (not limited to finance) and want to learn about how our strategic partnering approach can help you and your business please do reach out and we can arrange a time to talk this through. Please look out for further information through our social channels and website at 4Front Recruitment Limited for these opportunities along with other clients we are working with on there talent attraction strategy. What advice would you give when working with a new client? What do you look for when working with a new supplier? #recruitment #partnering #accountancy #finance #practice #westyorkshirejobs #tax #audit #transaction #4frontrecruitment #atthe4front

4

1 Comment

Which businesses are the worst for defaulting on tax? The Global Payroll Association has revealed which UK business sectors have been hit the worst for defaulting on tax. New research has revealed those most heavily penalised for deliberately lying about the amount of tax they owe, as HMRC dishes out £22m of penalties for deliberate tax defaulting. The sector that accounts for the largest share is the Digital Services & Content industry within which companies have been fined £4.3m for deliberately defaulting on tax returns. The Property industry, including property development, has been fined £2.5m, followed by Supply Chain & Wholesale Trade (£2.3m), Construction Services including Trades and Engineering (£2.1m) and the Agricultural Industry with Fishing & Farming (£2m). The other sectors to have been fined more than £1m are Logistics, Courier Services & Transportation Services (£1.9m), Waste Management & Recycling Services (£1.4m), Income – Trusts (£1.35m) and the Hospitality & Food Industry (£1.3m). HMRC’s list of tax defaulters also reveals that individuals working in basic occupations such as builders, delivery drivers, bricklayers, roofers and labourers are responsible for taxes and penalties in the tens of thousands of pounds. #tax #default #HMRC

7

1 Comment

This April is a particularly busy one for payroll departments, with changes to National Insurance Contributions (NIC) and to statutory pay scales all coming into force at once. Here’s a quick summary of what your payroll department needs to know for the 2024/25 tax year... https://sowo.kr/Vp9XgqbB #PayrollUpdate #NewTaxYear #BusinessAdvice

1

Four payroll providers have joined HMRC’s “list of shame”! Acacia Management Services, Alphasaint, Ultra Employment and Worx 4U have all been named and shamed as promotors/enablers of tax avoidance schemes. As you might be aware, HM Revenue & Customs has created a list of named tax avoidance schemes, promoters, enablers and suppliers to enable transparency as to who are engaged in these schemes. HMRC updates the list regularly and a link to the list can be found in the comments below. Don’t get caught out by suppliers like these, talk to accountants like NumberMill for the best quality advice and service. #HMRC #tax #taxavoidance

13

2 Comments

Off-payroll is “loss-making exercise for the Treasury” It does not make sense for one department (HMRC) to charge another for tax, which it then gives to the Treasury, to pay the bill. There is a reason the public sector has ended up putting vast numbers of people on-payroll (e.g. not outside IR35). It's a combination of a few factors, which I'll write about in due course (I'm sat on some FOI's). Clue: they've effected been strong-armed into doing so, irrespective of the position in law. Somewhere in the centre, something hasn't been excellent. OPW in the public sector has been a disaster, and just increased costs. We don't actually need OPW for the public sector - they could just run a rule which says every single hire is a deemed employee, and the result would be near-on the same. The stupidy of it all. Worthy of a Tax Policy Darwin award. #ir35 #offpayroll

129

19 Comments

🗣 Recruitment Market Update: We are seeing more and more Head of Finance, Finance Director & Financial Controller roles hitting the Essex market. April has been the busiest month so far for the Qualified level this year and is showing no signs on slowing down. Many companies I am speaking to are asking their finance teams to do more as their functions remain quite lean. With this in mind, businesses are looking for senior leaders who are hands-on, preferring action rather than just overseeing a function. So, to anyone on the lookout for a new role, my advice is this: don't hesitate to show that you're open and ready to dive into tasks when needed. They are looking for more "doers" rather than "reviewers".   When speaking to any candidate on the lookout for a new role, my advice is always to highlight your willingness to roll your sleeves up and get involved in all levels of finance , no matter the task. While you may have previously led big teams and acted in a reviewer capacity, the market has turned and you may need to take a step back to further add value to a company. If you're looking for your next role or simply want an update on what the market is looking like, please feel free to drop me a message or call on 01371 832922. #FinancialControllers #FinanceDirectors #HeadofFinance

32

“Doing nothing in these market conditions and hoping that business will continue as it has always done is a certain path to business failure.” – this is the case for many businesses in our industry and the message from my column in the latest annual BDO UK LLP Motor Salary Survey published today. My contribution covers the challenges faced across motor retail and the need for businesses to remain agile and the actions to consider. You can read the full report by clicking on the link below, including insight into remuneration packages within motor retail. https://lnkd.in/dgHaaWr2 #bdomotorsalarysurvey #remuneration #automotiveremuneration

34

Read this article to discover whether you need to consider IR35 if you provide your services through your own limited company to an end client Read More: https://buff.ly/40fip1B #offpayrollworking #IR35 #Contractors #TaxLaws #Compliance #BusinessRegulations #Freelancers #IR35Reform #TaxAdvice #ContractorLife #SmallBusiness #TaxPlanning

4

Are you ready for an HMRC visit? HMRC have announced that they will be recruiting 5000 new staff by 2029/30 to help them tackle the Tax Gap. Recruitment has already started with 200 joining this month. What does this mean to you? You never know, it might mean that they will answer their phones quicker but more likely is that compliance reviews will increase. A lot of businesses have got used to a lack of attention from HMRC – many VAT registered businesses have not had a "VAT inspection" for years unless their affairs have been unusual - this increased workforce will mean that more VAT registered businesses are likely to be "visited" within the current four year capping window. Are you ready for an intervention? At Galloways we can help you with this process- kick the tyres, so to speak, to make sure that there is no ticking time bomb. Contact me if you want to discuss your requirements.

30

*NEW* Director – Accounting & Finance Operations (EMEA) role!! 🤩 Working with one of my top US law firm clients on this role and trust me, roles like this don't come round very often so run, don't walk!! More info to follow after a briefing call today to discuss the role in more detail, their key requirements and salary banding which I will share on here later on today, but if you would like me to hear more about it drop me a DM 📩 #financedirectorjobs #seniorlegalfinanceroles #uslawfirmjobs

18