Is it possible to register a new employer without a UTR and without having to use a simplified payoll scheme, they are all employing a personal assistants?. I'm having a bit of a nightmare trying to find software that handles simplified schemes. Does anyone know any?
I was looking at the possibilty of just opening "regular" schemes that would allow me to stick with my current software but in order to do this online the client needs a utr. The "employers" are all in receipt of direct payments and therefore not engaged in any employment.
I really don't want to do this manually, due to volume and even HMRC seem to be having problems enabling their own software to the schemes I've registered so far.
-- Edited by ADAS on Tuesday 23rd of November 2010 06:08:43 PM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
I use the online 'register as a sole trader' form, and leave the UTR blank. It hasn't been questioned or caused any problems so far. I then operate the payroll as usual (I use Moneysoft) to produce the wage slip etc each month. The assistants that my clients have earn over £700 pm so the simplified scheme doesn't apply anyway.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
I ended up calling HMRC yesterday, the lady I spoke to was really helpful. Her advice, though I'm sure it's not official, was basically to avoid using simplified schemes. She even cancelled the ones I'd opened and re-opened standard schemes for me.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
I am in the process of offering this service to my Local Authority service users having worked in financial assessments for many years. Do you still avoid the simplified schemes and use the standard scheme?
Also, what do you pass onto the service users (employers/clients), the payment amounts to their personal assistants and a total of what is to be paid to HMRC with a deadline date? The LA I'm dealing with have informed me that the MLR procedures and customer due diligence do not apply to payroll services (only managed accounts) but I am not sure of this and have emailed the AAT and HMRC for further clarification. Do you apply your MLR procedures to these clients?
In terms of the info I pass on it's really no different to any other client , in terms of paperwork.
They get:
1. 2 x Payslip for each period - one for the PA to keep and the other for the PA to sign and the SU to keep as evidence (your LA will probably audit them at some point) 2. Quarterly P32. 3. Amendement Form
I don't know how the agreements work with your LA but basically all my clients have a set number of hours awarded at a set rate. It's a good idea to send an "Amendment Form" with each payslip. That way the onus is on the SU or PA to keep you informed of changes.
I don't actually deal with the LA. A local charity runs the service on the LA's behalf and they got me involved when the hit a bottleneck. So your situation might be a little different.
The charity asked me to organise the quarterly payments for the SU to HMRC. Following a discussion with ICB and a suitably worded Letter of Engagement I'm "willing" to do this but I insist on express permission to make payments from the SU's bank account. Some clients don't like me doing this - which suits me to be honest.
This is largely the reason why I use standard schemes. Plus the small matter of 12Pay not handling simplified schemes
Personally, I insist on MLR compliance and due diligence. I'm not saying your LA is wrong, but I'd rather be safe and comply and I don't see how the SU is anything other than a client if as in my case, you're paid directly by the SU not the LA. But the AAT will give you the definitive answer.
hth
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Thanks for the detailed response, that has given me more than enough information to go on so that's much appreciated. Plus, I never thought about two payslips and obviously that makes a lot of sense.
