PIXIE PAYROLL Blog

Whilst it’s true that payroll management is a function of accounting and bookkeeping, it is also recognised as a profession in its own right due to the complexities it has to deal with. There is an industry body, the Chartered Institute of Payroll Professionals and I’m over the moon to announce that I’ve just been accepted as a member.

The application process was quite lengthy & detailed, and my application was scrutinised by two separate panels. They wanted to know about my qualifications and professional experience so I had to make sure I didn’t leave anything out or underestimate my achievements, but I finally heard yesterday that my application was successful. I now have the letters MCIPP after my name to go with my FMAAT – I’m going to need bigger business cards!

Being a member of the CIPP is about more than just the letters though. I’ll be getting regular updates on payroll policy and processes and will be able to share best practice with other payroll professional across the country. I’ll also have access to the Advisory Service, so if there are any queries I can’t answer immediately, I’ll be able to consult the CIPP technical experts. The CIPP also encourages CPD so I’ll now have the opportunity to take more training courses to build on my knowledge to ensure I’m always up to date and I’m also hoping to be able to go along to some of the national events that I’ll now be invited to as a member.

Becoming a MCIPP really was a goal of mine and I’m so happy to have achieved it. It will definitely take my payroll practice to the next level and that can only be good news for my clients. Anyone who is considering using me for their payroll management can now have the confidence that my skills and practice has been recognised as outstanding by the industry body so their payroll will be handled professionally and expertly at all times.

As you know, I have always focused my business on offering payroll services. But soon, I’m going to be able to add an additional service for customers – the preparation of employment contracts.

At the end of last year and working with Bright Contracts, I took quite an intense training course and then invested in some additional software so I can now create legislation-compliant employment contracts for you, with no legal fees and no fuss.

It is now the law that employers have to provide employees with an employment contract. Currently it has to be done within 8 weeks of the employee starting work, but from April 2020, employees will need to be provided with one on their first day.

Whilst preparing employment contracts might seem like a bit of an administrative burden, they are actually a good thing for both employer and employee. The employer can use them to secure working practices such as when people can take holiday so that the running of the business is not interrupted. They’re also important for setting out policies such as a social media policy so the reputation of the business is not put at risk. For employees, a contract offers a certain level of security of employment and clearly sets out what is part of their job role and what isn’t. It should also clearly set out grievance and anti-bullying procedures, as well as sickness arrangements, so an employee always knows where to go to for help.

Each contract that I create using Bright Contracts can be completely bespoke to a customer’s business, the employee & their role and will be branded with logos for a professional look. A process can even be established whereby when a customer tell me about a new employee to add to the payroll, an employment contract is automatically generated.

The Bright Contracts software will also keep me updated on any changes in employment law – there are a number of new pieces of legislation coming into effect this April including Jack’s Law regarding parental bereavement leave – and provides an overview of the contract status of every employee. It really does take away a lot of admin pressure, especially if there isn’t a dedicated HR role in your business.

If you’d like to talk more about how this additional service I’m now offering could help you, call me on 01326 336364 or email kellie@pixiepayroll.co.uk.

Happy new year! As I write this, we’re half way through January and the fun of Christmas has given way to a gloomy, wet and windy January. But the evenings are starting to draw out and spring isn’t that far away. That means we’re close to April and the end of one tax year and the start of another, which often brings changes to income and taxation.

2020 is no exception as this year, as there are changes due to the National Minimum Wage and the National Living Wage which we have detailed in this blog. We’ve also included an update on the personal allowances although they aren’t changing this April.

Firstly, we thought we’d clarify the difference between the National Minimum Wage and National Living Wage. Put simply, those aged under 25 have to, by law, be paid the minimum wage for their age and those aged 25 and over have to be paid the living wage by law.

You may also have heard of the Real Living Wage. That is a rate – currently £9.30 per hour outside London and £10.75 in London – that the Living Wage Foundation has calculated is needed to live, based on current living costs. Some employers have committed to paying the Real Living Wage, but it is voluntary so as an employee, you can’t insist on it.  

In terms of increases in the statutory rates, the National Living Wage was £8.21 per hour in the 2019/20 tax year and from April 2020, it will increase to £8.72 per hour. This means that someone working 40 hours per week will see an increase of just over £1,000 per year in their wages.

The National Minimum Wage for everyone under 25 and apprentices is increasing too.

Personal tax allowances are remaining the same in 2020/21 at £12,500. That means someone can earn up to the threshold before any tax liability kicks in and will, in future, be then indexed with the Consumer Price Index (CPI). The higher rate threshold will be £50,000. Bear in mind these are the current rates for England & Wales, there is a slightly different taxation regime in Scotland which we covered in our September blog here.

Whilst a pay rise is good news for everyone, it does mean employers have to make new calculations and look at how the new results affect their bottom line. Increases in National Living Wage and National Minimum Wage rates often means wage rates for all employees in a business need reviewing, even if they currently earn above the minimum rates, so if you need any help or advice in understanding how the new rates might impact your business planning, get in touch.

Here we are nearly at the end of 2019 and only a couple of weeks until Christmas which is always a time of reflection for me. The year really has gone by in a flash but overall, it’s been a good one.

Possibly the most exciting thing to happen, and a real milestone for Pixie Payroll, was the launch of the new branding and website. The whole process took quite a few months and I was supported by some other great Cornish businesses to get there but in October, everything finally went live. The new brand really reflects where the business is now and where it’s going, and the website now clearly set out the services we offer. There’s been some great feedback on both the branding and the website which we’re really grateful for.

The investment in the new branding and website was partly driven by growth in the business this year. In terms of the numbers of payroll schemes we now manage, we’ve seen growth of 34% in just 8 months. Some of that growth has come from recommendations and existing accountancy clients asking us to take on additional schemes which is always a confidence boost and it’s great that we can manage that level of growth whilst maintaining great customer service; something we will never compromise on.

On a personal level, I’ve also spent quite a bit of 2019 ensuring my skills and knowledge are up to date by attending some training courses. These have included HMRC updates on some construction industry schemes, AAT updates and early next year, I’ll be attending Chartered Institute of Payroll Professionals training on the changes due to payroll for the 2020/21 year. I will, of course, be receiving updates from the various bodies on any further changes that might arise after the general election so will be able to answer any questions my clients may have. I’ve also invested in some training that will enable me to grow the business by offering additional services – watch this space for news on that in the new year!

I’ve also been out and about doing a bit of networking too this year which isn’t something I was looking forward to but groups like Your Partnerships Cornwall have been so welcoming and friendly that I ended up enjoying it! I’m looking forward to doing more of that in 2020. It was also great fun to be able to sponsor the match ball at Mullion Cricket Club in the summer; especially as we were able to enjoy going to the matches as a family.

As the year comes to an end, I’d like to say thank you and Merry Christmas to all my clients and to all the suppliers I have worked with this year. I hope everyone has a great Christmas with time to relax and enjoy family time and I look forward to another great year in 2020.

Merry Christmas and Happy New Year from Kellie.