Payroll - The Book-keepers Forum (UK)

Beverley · Veteran Member

Payroll

Merlion ABS · Senior Member

As far as I'm aware you don't need to register with anyone, apart from registering self employed with the Inland Revenue if you go down the sole trader route.

Always helpful though to have some qualifications behind you. If you are a member of an association you may have to speak to them to clarify whether you can use your qualification for your business.

Get some PII as well.

Also, are you looking to do the BACS payments for your clients? You may need to use a 3rd party for this such as Moorepay or if you want to do it yourself, it can be quite expensive for the software.

Peasie · Expert

Beverley wrote:
do I need to register anywhere i.e HMRC for instance.

I would guess you would need to register as an Agent with HMRC so that you can deal with your clients tax affairs. Submitting the various forms on their behalf.

Peasie · Expert

Merlion ABS wrote:
Also, are you looking to do the BACS payments for your clients?

Can you explain what this entails as I've read about it on bookkeepers websites but never understood what it meant in practical terms. Hopefully this won't hijack the thread too much.

Beverley · Veteran Member

Thanks guys I'll look into the agent thing.
Good question Peasie don't worry about hijacking the thread - I'd like to know too.

BackOfficeGroup · Guru

You need to become an agent for PAYE wiht HMRC.

Then, when you taker on clients, you need to complete a form which links your client to your agent number for online stuff, then place all in your snazzy payroll bureau system and your away.

Easy as pie!

As for BACS, it costs alot of money to become one, I have £7k in my mind but I think it is more!! I'd leave it for the client to pay from the info given.

P

Beverley · Veteran Member

Thanks P very helpful, can I register with HMRC now even if I don't have any clients yet?

Merlion ABS · Senior Member

Peasie wrote:

Merlion ABS wrote:
Also, are you looking to do the BACS payments for your clients?
Can you explain what this entails as I've read about it on bookkeepers websites but never understood what it meant in practical terms. Hopefully this won't hijack the thread too much.

BACS payments tend to be used for bulk transaction such as payroll payments so they are an ideal method for payroll businesses. Basically its the same as transferring money from one account to another except you do one big payment split into many accounts. (you can do single ones).

BACS stand for "Bankers Automated Clearing System". BACS payments from the bank go via the Clearing System and out to the payee's accounts.

In the old days, the client's bank would require a list of the employee's bank details and they would give you preprinted forms to complete once you have registered all the employee details with them (they charge for this) and then each month once the payroll is done, the form would be completed with the relevant net pay for each employee and faxed over to the bank about 5 days before pay day. (BACS payments take 3 days to clear)

This was a simple way of doing it, but was very costly as it required humans to process the forms.

So in the case of running a payroll business, you would have authorisation from all your clients to complete these forms and submit straight to the bank for processing.

However recently some banks are stopping this practice and forcing people to use the companies on-line banking facilities. Unfortunately this isn't ideal for payroll businesses as the clients will be unwilling to hand over the log in details to their bank accounts. (NatWest have recently stopped the paper format and are now forcing smaller businesses to use a 3rd party BACS processor).

In order for a payroll business to get round this, they either have their client use a 3rd party BACS processor such as Moorepay, or they can register as a BACS processor themselves and submit payments via the BACS system directly. Saves a lot of hassle and makes things easier.

Now to be registered as a BACS processor requires a lot of money to set up and purchase the required approved software.

http://www.bacs.co.uk/Bacs/Bureaux/BecomeApproved/Pages/ApprovedSoftware.aspx

Have a look, it makes interesting reading.

Being an approved BACS agent as such skips the banks altogether.

Hope that answers your question.

8)

BackOfficeGroup · Guru

Beverley

Yes you can register to do anything at any time.

P

Tom McClelland · Senior Member

Merlion ABS wrote:

However recently some banks are stopping this practice and forcing people to use the companies on-line banking facilities. Unfortunately this isn't ideal for payroll businesses as the clients will be unwilling to hand over the log in details to their bank accounts. (NatWest have recently stopped the paper format and are now forcing smaller businesses to use a 3rd party BACS processor).

In order for a payroll business to get round this, they either have their client use a 3rd party BACS processor such as Moorepay, or they can register as a BACS processor themselves and submit payments via the BACS system directly. Saves a lot of hassle and makes things easier.

Another option, that quite a few of our bureau clients use, is that they process the client's payroll as normal, then along with the payslip and reporting PDFs that they return to the client they also return an appropriate payment file for the client's own (internet in some cases) banking software. The bureau just has to ask the client which banking software they have, which usually depends on which High St bank the client uses (eg HSBCNet, or Bankline, or whatever). The client can then check the payment list in their banking software against their payroll reports before approving it.

Beverley · Veteran Member

does anybody know of the best courses to go on for payroll, I know a far bit bout it but nothing to show for it. if I'm to start a bureau I think it would be an advantage to have some kind of certificate?

Marky65 · Guru

Hi Beverley

If you do know a fair bit I would consider going for the ICB payroll. I have done payroll for a number of years without any qualification. I didn't take any courses just obtained the ICB past paper to get an idea of what might be asked then sat the real thing

Good luck

Regards

Mark

Beverley · Veteran Member

Thanks Mark, I'll look into it I'm assuming this can be done on line?

Marky65 · Guru

No, unless it has changed recently it is done at your home/office on your own payroll software and they send you a back up file and question paper to work with.

Mark

Beverley · Veteran Member

Hi Mark

I've looked on the ICB website & payroll is done over two stages, I've sent them an email asking if I can just do the second stage or if I have to do both stages....waiting for a reply.

Marky65 · Guru

Do you mean part 1 manual and part 2 computerised because both parts are included in the one exam

Mark

Beverley · Veteran Member

the website didn't specify I'm assuming computerised....still waiting for a reply!!