Payroll help needed please

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maddiehorse
maddiehorse Registered Posts: 7 New contributor 🐸
Hi all, Can anyone help me with a couple of payroll questions please?
I am a treasurer for my local village hall and we employ one person (the cleaner). Her contract is for a notional 25 hours a month which varies according to the hall usage. She is a non tax payer as this is her only income. Should I issue her with a P60 each financial year and a P45 when she leaves as this doesn't seem to have been done previously?
Also if she wanted to job share this role should I create two new contracts splitting the nominal hours between the two of them, or should I do one contract but make both parties sign it?
Any help much appreciated.
Thanks

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  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Hi there,

    In relation to a p60 that is usually issued to the employee after the tax year if she's still working there, so for current tax year (2015/2016) end of tax year is 5th April 2016. Even if the employee is leaving you can prepare their p60 before the end of tax year and issue them a p45. A p45 is a compulsory document which must be issued if she is going to leave her position. This is a legal requirement (if she is leaving). In terms of Job share what do you mean? Job share with another employee? This is my opinion as a contract is a legal document between the employer and employee, you could just create the same layout on the contract but make them each sign the document, that way each of them have their own official copy and record. You must remember to make the changes to the payroll when preparing the payslips plus the adjustments. Also you must ensure that the employer payment summary is sent too as the tax owed is nil which I am sure you already do. Hope this helps you out if you have any more questions do feel free to ask

    Many thanks

    Kind regards

    Shamil karia
  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Hi again

    To also add when you add a new employee always remember you need the employees p45 or p46. Passport or driving licence for photo id. A utility bill such as a mobile phone bill or bank statement to verify address and would suggest get a copy of the national insurance number for company records. Hope this helps you out and good luck.

    Kind regards

    Shamil karia
  • maddiehorse
    maddiehorse Registered Posts: 7 New contributor 🐸
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    Hi Shamil, thanks so much for replying. I'm afraid I am more than a little out of my depth with this one having no payroll experience and no one to ask for help. I do have her P46 which she gave me when she was employed but have not been issuing her with payslips, just time sheets which I narrate with how much she is being paid and she then signs. I guess this is wrong. Also I'm not sure what you mean by The employer payment summary as I haven't been submitting anything as yet. Help! :0(
  • LynWest
    LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
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    What payroll software are you using? You need to do RTI submissions every pay period to HMRC. The Employer Payment summary is something that the software will send to HMRC You have to do a submission even if she has not worked in that period.

    Being an employer i would also look on the pension commission website and find out when the auto enrolment staging date is. As this is something else that you will have to consider.

    Hope that helps
  • maddiehorse
    maddiehorse Registered Posts: 7 New contributor 🐸
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    Hi Lyn, many thanks for your reply. I don't currently use any payroll software as there is only the one employee. And I didn't believe I had to do RTI as she is a non tax payer? Am I wrong? I have checked the pension regulator website and have discovered The charity won't need to offer her a pension unless she requests one, and if she does the charity doesn't have to contribute due to her earnings being so low and her being the only employee. One less thing to worry about but I'm really concerned I'm not doing the payroll be right :0(
  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    If she earns more than £112 a week you will need to have a PAYE scheme in place and submit FPS every pay period (be it weekly or monthly).
  • maddiehorse
    maddiehorse Registered Posts: 7 New contributor 🐸
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    Hi Marie, Thanks for your comment. She only earns approx £200 a month, usually less. So I've not been submitting any payroll data as I didn't believe I needed to, but I am concerned that I should have done a P60 for 2014/15 and would also need to give her a P45 if she leaves? Can anyone confirm what I do with the completed P60/P45 please? I assume I keep a copy, one to the employee and one to HMRC?
  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    Is this her only job and source of income? Did she provide a P46 before taking on the job?
  • maddiehorse
    maddiehorse Registered Posts: 7 New contributor 🐸
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    Hi Marie, yes this is her only job and she provided a P46 when she started to confirm that fact.
  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    Although you do not have any reporting obligations under RTI, you would still need to keep records of payment and get Employer's liability Insurance. I think she would be entitled to a payslip (although can not find legislation for lower paid workers) and a statement of earnings at the end of the year.

    The ACAS website has lots of information that you may find helpful regarding employer's obligations.
  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Hi again, dont worry there is always someone here to help you out aswell. Its good to issue with payslips so she has her own copy too. Just shows her how much she earns what rates shes getting etc. Thats fine too as you have provided a manual break down calculation for her, but generally if someone is working for me I usually would issue them a payslips for their reference. Employer payment summary is just a submission to HMRC done through your payroll software just to say that the employee is paying nil taxes. Dont stress and be upset we can help you out. As another member said RTI, RTI basically means real time submission (Full payment submission on payroll softwares) which in simple is you have to submit the details as to how much the employee has been paid in that period and their deductions (dont worry the system should have this feature included). In relation to Auto Enrollement (Work place pension) the following rules apply for work place pension, the employee must be ages between 22 - state pension age and should have an income of over £10,000 so I dont think that the employee will be eligible. As I read from previous messages you dont use a software not a problem you can use HMRC's tools to submit nil tax payments (Employer Payment Summary) as you still have to notify HMRC that she does not owe any taxes. Please see the links below, there are several links to guide you.

    Payroll software guidance and can be used for manual : https://www.gov.uk/payroll-software/overview

    Link for Free Payroll software : https://www.gov.uk/payroll-software/free-software

    Employer Payment submission link and NIL submissions guidance to HMRC : https://www.gov.uk/pay-paye-tax/tell-hmrc-no-payment-due

    Guidance on running payroll : https://www.gov.uk/running-payroll/reporting-to-hmrc-eps

    Please not there may seem like many links but they are a good guidance to payroll plus each are like a page long only and on top of this they are not that long a read as they only have a few sentences but they gets straight to the point.

    For any employee it is usually a legal requirement to submit them a P60 after the end of the tax year by the 31st of May, what I would suggest is giving HMRC a call and explain to them that you run Payroll for 1 employee you didnt know about the P60 etc and they may be able to help and support you. Please see the link : https://www.gov.uk/government/organisations/hm-revenue-customs/contact/employer-enquiries

    You would need to issue a P45 if the employee is leaving. Unfortunately you can not download these and HMRC would probably even tell you to download a free software to run payroll which is what I would advise too. With a P60 you would issue that to your employee as it shows them how much tax has been paid in the tax year and that documentation can be used to support the employee if they were looking for a mortgage, loan etc. A P45 is split into three parts, See the link it gives a nice basic break down of every form aswell : https://www.gov.uk/paye-forms-p45-p60-p11d/p45.

    Please do not stress I do apologise for the massive message but I prefer to explain and give you a detail breakdown so you understand it. I hope this has helped you out please do feel free to ask me any questions, I am more than happy to help you out. Never worry mistakes happen we are all human and we can rectify them.

    Kind regards

    Shamil Karia
  • maddiehorse
    maddiehorse Registered Posts: 7 New contributor 🐸
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    Thanks so much for all your help today Shamil and Marie. I feel much better now and it's so nice to know there are fellow members out there prepared to help another. I'll check all your links Shamil and give HMRC a ring if I'm still not sure on anything. Thanks again everyone. :0)
  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Good evening,

    Your most welcome always here to help. There will always be someone out there to help you out in this world no one is ever alone. Definately the links are quite short and get to the points so you wont need long on each of them. Also provided a link for free softwares if you do consider it. HMRC is always there to help but a warning they do at times take very long to answer so you may need to be patient, I would say they can at times take up to 45 minutes to answer so make you have minutes if you call.

    Hope this has helped you out and reduced the stress. Feel free to ask any other questions if you want

    Kind regards

    Shamil Karia
  • maddiehorse
    maddiehorse Registered Posts: 7 New contributor 🐸
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    Thanks so much Shamil. I will do that. Enjoy your evening.
  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Your most welcome, you too enjoy your evening

    Kind regards

    Shamil Karia
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