A payroll is a list of company employees and what they are paid. It is mostly used in reference to workers’ salaries and keeping track of the amount each employee has made cumulatively. Payrolls are crucial in the successful operation of any business that relies on people’s input for productivity. If you are looking for the best of the best global PEO then see here.
Payroll is essential for:
• Calculating the NIC and tax to deduct from a worker’s gross pay
• Determining an employee’s wages
• Gathering and reporting salary information to HMRC
• Ensuring all employees are paid
Are you in the process of registering as an employer and want to know more about payrolls? Visit the UK government’s official website for an in-depth guide on this and more.
Employee Hours
It is best to invest in a system that monitors the hours your workers put in if you pay them at an hourly rate and want to ensure they are paid the correct wages. On the other hand, you may opt to monitor how your employees are working if they are on a salary to ensure they adhere to their contracted work hours.
You also must log any overtime your employees put in and the sick days for each worker to ensure they receive the correct wages.
Working Remotely: Claiming Tax Relief From April 2022
The government issued instructions on working from home as part of COVID-19 social distancing measures. The restrictions include mandatory self-isolation if you or a close contract contracted the coronavirus. The government instructions meant that the 2020–2021 and 2021–2022 tax years would see millions of employed individuals in the UK qualify to claim tax relief on extra household costs accrued when working remotely.
Eligibility rules regarding the tac relief still stand, but easing the social distancing restrictions means many employees will not qualify to claim tax relief from April 2022.
Eligible workers can use the government’s online services to claim tax relief as they work from home. It is a service introduced to speed up the process, and it will be in place during the 2022-2023 tax year. According to the HMRC, claim levels are projected to return to almost pre-pandemic levels by the close of the next tax year.
Employers can opt to compensate their workers for reasonable supplemental household expenses that the employee accrues while executing their employment responsibilities or duties at home as per the employer-approved remote working arrangements.
If employers opt to pay their staff, the employees cannot use the online service to claim from HMRC unless the wages are below £6 per week. The workers can claim the difference if they meet all other eligibility requirements.
Employers may not face any fees when paying £6 per week tax and NI, and this can total roughly £26 per month for the monthly pay frequencies.
HMRC updates its claim tax relief guide to also accommodate those working from home, and the changes focus on:
a). Clarifying the eligibility criteria
b). Helping people understand what cannot and can be claimed
Hybrid Working: Employment Income Manual Guidance
HMRC has noted an increase in the number of employers providing hybrid work schedules and arrangements given the increased number of workplaces being converted into hot desks and meeting spaces. Hence, HMRC has updated the Employment Income Manual to ensure the guidance within reflects the changes. However, relevant legislation and policies remain the same.
Furthermore, HMRC introduced signposting pages for work-related travel expenses. It is geared toward easing navigation across the current guidance manual, highlighting the most appropriate pages for individuals working under the hybrid work arrangements.
HMRC also amended the tax treatment guidance impacting certain homeworking equipment, costs, and deductions, and clarified HMRC’s view on how those working under hybrid arrangements will implement the new rules.