corporate finance 15
Are you ready for the changes to PAYE?
HM Revenue & Customs is introducing a new way of reporting Pay As You Earn (PAYE), known as Real Time Information (RTI), writes James Alesbury of HWB
It’s a significant change that will affect the way every business in the UK handles its payroll and employers should be readying themselves now.
At HWB we process payrolls on a weekly, monthly and quarterly basis for in excess of 200 clients. We understand how to manage this crucial function smoothly and how to ready payroll systems for the new regime.
RTI is intended to improve the operation of PAYE by making the system easier for employers, pension providers and HMRC to operate.
receive information quicker.
The fundamentals of PAYE remain unchanged. For example, use of codes and deducting tax and National Insurance. What RTI does change however is how and when employers and pension providers report information to HMRC.
Under RTI, information about PAYE payments will be submitted online throughout the year as part of the payroll process, rather than at the end of each tax year as it is now.
All employers will be required to use RTI by October 2013, however HMRC will notify you when your business will need to make this move as for some employers, this deadline will be sooner.
Before joining RTI, employers and pension providers will need to go through a payroll alignment process to help ensure that information on their payroll can be matched efficiently to the correct individual record.
Improving your data quality is important preparation for a successful transition to RTI.
Over 80% of data quality problems are caused by holding incorrect information about an individual’s name, date of birth or National Insurance number.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JUNE 2012 Recovery position
Tracey Bevis, senior new business manager at Pulse Cashflow Finance, explores the potential of invoice financing for recovering Hampshire businesses
While the economy has flatlined with stagnant GDP, in no small part due to public sector job cuts, positive data from the final three months of 2011 shows that the private sector is picking up the slack and creating new jobs.
Figures released by the Office for National Statistics (ONS) indicate that the number of people employed by privately-owned businesses increased by some 45,000 to 23 million during the three months to January 2012, which could be clear evidence of the green shoots of economic recovery coming through.
Individuals should also
Getting this information right means the individual will pay the correct tax and National Insurance contributions and employers and HMRC will receive fewer queries.
To be sure your business is ready for RTI:
• Check you have all employees’ full and official forename(s) and not just their initial(s).
• Make sure that their forename(s) and surname are in the correct order.
• Check an official document to ensure that you have spelt the name right – ’Smith’ and not ’Smyth’.
• Check you have the correct date of birth. Do not use a default date.
• Check you have the correct National Insurance number. Never make them up or use temporary numbers.
For concerns relating to RTI, payroll or any related matters, HWB can offer expert advice.
Details: James Alesbury Payroll manager 023-8046-1200
There are numerous businesses across the Solent region that are recovering in a similar vein to the ailing UK economy. Nonetheless, alongside the countless corporate casualties, there are several local businesses that will certainly go to the wall if they fail to get the professional advice or the financial boost they need.
In these cases, a strong and effective management team may have steered the business thus far, but it may well be a bank or financier that could cause the demise of the business through a lack of appetite, change of heart or, quite simply, the inability to provide adequate facilities.
What are the options for these Hampshire businesses? A company’s most significant asset can be its debtor book. Payment from debtors can drive working capital, and invoice finance is geared to this and serves as an effective way of boosting working capital further.
Historically, invoice finance providers have focused on the business' track record, historical data which may not have been particularly strong during the downturn. In these circumstances, they can be reluctant to lend to a recovering business.
At Pulse Cashflow Finance, we focus on the quality of the debtor book and if this is verifiable, we can turn around a facility at speed to enable businesses across the Solent region to benefit from adequate funding within days.
Where creditor pressure has consumed the business, Pulse Cashflow Finance can provide the company with sound professional advice, as well as essential funding. We can introduce restructuring experts to the business and negotiate with creditors to keep business owners and shareholders in control of their corporate destiny.
If you would like more information about Pulse Cashflow Finance’s invoice financing services and how we can help your business on its path to recovery, contact Tracey Bevis on the details below.
CLIENT CASE STUDY
Pulse Cashflow Finance completes an invoice financing deal with a recovering business operating in the hotel recruitment sector that provides staff across the Solent area. The £14 million turnover business was in a turnaround situation, requiring a crucial funding boost to survive. By transferring its facility to Pulse Cashflow Finance from the incumbent lender, the recruitment company was able to secure a £1.7m funding line in a transaction that was completed within five days.
Details: Tracey Bevis 0845-539-7003
enquiries@pulsecashflow.com
www.businessmag.co.uk
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