dcsimg amlink.uk - Payroll

Payroll Services

At Amlink Limited, we don't just process your payroll, we will work with you to manage your payroll from start to finish.

We specialise in working with small businesses and individuals employing domestic staff.

No Hidden Costs - we agree these with you in advance.
No Tie-ins - we ask for one months notice to cancel.
You can call us and a person will answer rather than a call centre.
Your payroll is processed in the United Kingdom.
All your data is held securely on our in house computers.


Payroll Preparation

Standard Charges [UPDATED 17/02/2016]

 

Due to the introduction of auto-enrolment into pension schemes we have had to increase our charges to cover the additional costs and time involved.

 

Standard payroll preparation per employee per payroll run £3.10 (Minimum charge £31.00)

 

Complex payroll preparation per employee per payroll run £5.00 (Minimum charge £50.00)

 

Where there are regular amendments to the payroll preparation additional charges may be applied.

 

Processing Starters / Leavers £6.30 per Starter / Leaver

Additions / Deductions / Attachments (Basic pay is included in the payroll preparation charge) £3.15 per transaction

Processing of P45 / P46 for starters after their first week £6.30 per transaction

Holiday maintenance £12.60 per week  (optional)

End of year payroll reports and processing £45.00 per hour

Additional correspondence, e-mails and telephone calls £45.00 per hour

 

Where the employer only employs the director the employer may be exempt from auto-enrolment. Our charges will then be £15.00 per payroll run.

 

All charges are subject to VAT at the standard rate.

 

 

Employment Allowance

Increase in Employment Allowance

 

For the past two tax years (2014-15 and 2015-16) most employers have been able to reduce their employers national insurance bill by £2,000. We have applied this to all clients that we prepare payroll for.

 

For the next tax year (2016-17) the employment allowance increases to £3,000. However there will be a restriction which prevents this being claimed by single person companies. For this purpose, these are companies for which the only person paid more than the lower earnings limit (2016-17 £5,824) is a single director. If such a company had an employee in addition to the director, and the employee is paid above that limit, then the £3,000 employment allowance would be available.

 

For many single person companies capable of paying dividends this is not a problem. The calculations may still favour lower salaries that do not attract national insurance. In such cases the employment allowance is irrelevant anyway.

 

It is important to note that if an employer takes any action for which the purpose is to obtain the employment allowance, then the employment allowance is denied. For example, a single person company took on an employee to get the employment allowance, HM Revenue and Customs could later deny the allowance and impose penalties.

 

 

Taking on a New Employee without a P45




Taking on a New Employee with a P45




How To Check Your Pay-slip

We are often asked to check a person's pay-slip to see if the tax has been calculated correctly.

 

If your are being taxed on a week 1 or month 1 basis then enter 1 as the week / month number.

If your are paid monthly the number of pay periods should be 12. For all other cases enter 52.

 

There may be a variance between your pay-slip and the calculation but this should not exceed £2.00. This is down to the way the pay-slip has been calculated and rounding errors.

 

If you are a director different national insurance rules apply.

 

Payslip Information
Week number / month number
Number of pay periods in the year
Tax code (omit the letters)    
Gross pay this period:
Gross pay to date from this payslip
Tax paid this period    
Tax paid to date from this payslip    

     
Pay Calculation    
Gross pay    
Tax due    
Employees national insurance    
Net pay    


Working Tax Credits & Child Tax Credits

Working tax credits are given to people on low incomes who work more than 16 hours per week. Child tax credits are given to people on low incomes with children. You can get an estimate of the working and child tax credits you would be entitled to by  completing the information in the form below: This estimate is valid for the 2015/2016 and 2016/2017 tax years as the rates and allowances have not changed. We have not included child care in the calculation. Please contact us if this applies to you.

Basic Information
Your annual gross pay
Your partner's annual gross pay
Other Income
Total Income:
Number of Children:
Number of Children with a Disability    
Number of Children with a Severe Disability    
How many hours per week do you work?    
How many hours per work does your partner work?  
Are you a couple or a lone parent (1=Yes 0=No)  

Calculate Deduction      
Total Income
Threshold
Income Subject to Deduction
Deduction x 41%
       
Working Tax Credits
Basic element
Couple / lone parent element
30 Hour Element
       
Child Tax Credits
Family Element
Child Element
Children with a disability
Children with a severe disability
       
Tax Credits Claim      
Total Tax Credits
Less Deduction
Net Tax Credits per week
Made up of      
Working tax credit per week
Child tax credit per week

 

 

Understanding Your Tax Code

Tax Code 1060L

 

The most common tax code for tax year 2015 to 2016 is 1060L. It is used for most people born after 5 April 1938 with one job and no untaxed income, unpaid tax or taxable benefits (e.g. company car).

 

1060L is an emergency tax code only if followed by ‘W1’, ‘M1’ or ‘X’. Emergency codes can be used if a new employee doesn’t have a P45.

 

What the numbers mean

 

The numbers in an employee’s tax code show how much tax-free income they get in that tax year. You usually multiply the number in the tax code by 10 to get the total amount of income they can earn before being taxed. For example, an employee with the tax code 1060L can earn £10,600 before being taxed. If they earn £27,000 per year, their taxable income is £16,400. The process is different if the employee has the letter ‘K’ in their tax code.

 

What the letters mean

 

Letters in an employee’s tax code refer to their situation and how it affects their Personal Allowance.

 

Code How tax is deducted When this code is usually used
0T From all income - there is no Personal Allowance When an employee hasn’t given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
BR From all income at the basic rate For a second job or pension
D0 From all income at the higher rate For a second job or pension
D1 From all income at the additional rate For a second job or pension
L At basic, higher and additional rates depending on the amount of taxable income For an employee born after 5 April 1938 who is entitled to the standard tax-free Personal Allowance
M At basic, higher and additional rates depending on the amount of taxable income For an employee whose spouse or civil partner has transferred some of their Personal Allowance
N At basic, higher and additional rates depending on the amount of taxable income For an employee who has transferred some of their Personal Allowance to their spouse or civil partner
NT No tax is deducted Very specific cases, eg musicians who are regarded as self-employed and not subject to PAYE
T At basic, higher and additional rates depending on the amount of taxable income When HM Revenue and Customs (HMRC) needs to review some items with the employee
Y At basic, higher and additional rates depending on the amount of taxable income For an employee born before 6 April 1938 who is entitled to a bigger Personal Allowance

 

Tax code with W1 or M1 at the end

 

W1 (week 1) and M1 (month 1) are emergency tax codes and appear at the end of an employee’s tax code, e.g. ‘577L W1’ or ‘577L M1’. Calculate your employee’s tax only on what they are paid in the current pay period, not the whole year.

 

Tax codes with the letter K

 

The letter K is used in an employee’s tax code when deductions due for company benefits, state pension or tax owed from previous years are greater than their Personal Allowance.

 

Multiply the number in their tax code by 10 to show how much should be added to their taxable income before deductions are calculated.

 

Example: An employee with tax code K475 and a salary of £27,000 has taxable income of £31,750 (£27,000 plus £4,750).

 

The tax deduction for each pay period can’t be more than half an employee’s pre-tax pay or pension.