PAYE Settlement Agreements
Whilst all benefits and expenses do, in theory, have to be reported to H M Revenue and Customs via form P11ds and form P9ds each year, there are certain items which the Revenue accepts need not be reported. This can be a benefit for payroll services departments although it is safest to get agreement in advance from the Revenue in order to avoid any potential repercussions at a later date.
The basic requirements are that the benefits are only minor, given at irregular intervals and it is agreed (with the Revenue) that it is impracticable to deal with them in any other way. A business should never make assumptions that anything does qualify for such an arrangement however, as mistakes can be costly. If things are not done properly, there may be a charge for interest on tax paid late and even penalties for the business involved.
Working in payroll services can often be a thankless task, particularly in small to medium size businesses. Often the task of operating payroll is given to an individual such as the managing director's secretary or assistant and they are expected to do it in addition to their normal duties. There seems to be an assumption that it will only take an hour or so a week, so does not require a full time employee or a payroll outsourcing company. In practice, as anyone in payroll services will tell you, it is far more involved than that.
The outsourcing of payroll services has gained in popularity as everybody's time becomes more valuable. We at Dataplan are able to offer an economical solution to your payroll by managing your payroll services for you. We are able to plan a seamless takeover of your payroll and keep costs to a minimum, which is essential in the smooth operation of any business.