|Below is a summary of payroll changes for the 2015-16 year-end and the 2016-17 tax year:Tax and NI
Payrolling of benefits in kind in real time
Pegasus Software has announced that the upcoming release of Opera 3 (2.23) will provide some automation for customers processing PPD (prompt payment discount). In addition, the releases also include VAT Return improvements, further report output to Excel and other functional enhancements.
PPD – phase 2
The releases will include the ability to automatically handle VAT reductions that apply where an offer of settlement discount is taken up by a business (where settlement discount is offered to them by a supplier) and a customer (where settlement discount has been offered to that customer by the business).
The Suggested Payment Report and Authorised Cheques and BACS processes will be enhanced to deal with settlement discount VAT adjustments. This will allow users to pay automatically if settlement discount is taken. Flexibility is built in; users can continue to use credit notes or choose to use VAT adjustments. The new processes impact Sales Processing Receipts and Purchase Processing Payment forms. They include new checkboxes and fields.
Users not applying settlement discount will not be affected by these changes.
The upcoming release also includes, 5 further reports for output to Excel and VAT improvements: The menu structure will change; VAT reports and VAT processing will be split out. This will allow users to post adjustments directly to the VAT return and run reports without impacting other users in the system.
The release is scheduled for the end of June 2015
Microsoft has finally confirmed the availability of the Windows 10 free upgrade. Customers currently running the Windows 7 or Windows 8.1 operating systems have a full year to take advantage of the free Windows 10 download, which will be available from 29 July. Windows 10 was first announced in April 2014 and is currently in public beta testing.
Unlike with previous versions, Windows 10 will be used across all Microsoft devices, including desktops, laptops, tablets, smartphones – as well as the Xbox games console. Windows 10 could also enable users to manage devices and appliances across their home. However, Microsoft revealed that release of Windows 10 would be staggered across other devices, following the PC launch.
A new feature called Continuum means people using Windows 10 with a mouse and keyboard will see the new system in a classic desktop mode, but switching to a tablet or smartphone will see it transform into touchscreen mode. Microsoft has also brought back the Start Menu, which was ditched in Windows 8 in favour of “tiles”, in the hope that it would encourage wider adoption on touchscreen devices.
Rather than Internet Explorer, Windows 10 will come with a new web browser called Microsoft Edge, which allows users to annotate webpages or save them to read later.
It will also include Microsoft’s personal assistant tool Cortana – already on Windows Phone – which will pop-up with notifications and act as a search tool.
Windows 10 will be free for a year for users of the previous operating systems Windows 7, Windows 8, and Windows 8.1. The price for new users and after the year has yet to be confirmed.
For more information click here
Pegasus Software has announced the launch of their new product ‘Pegasus Business Cloud’. When you move to Pegasus Business Cloud, you no longer have to buy network hardware, software or ever have to worry about storage, since these all become part of a service that you can pay for on a monthly basis. Pegasus Business Cloud enables you to access a complete business solution online, at the office or on mobile devices, anytime, anywhere when it suits you, simple to install, Pegasus Business Cloud offers a way to modernise your business very quickly, easily and cost effectively.
This cloud solution delivers flexibility and adaptability, allowing you to adapt to the changing nature of technology in an ever increasingly ‘mobile’ world.
Giving you the choice
Of course you can continue to use Opera 3 in the same way as you have been up to now, using your existing IT infrastructure and maintaining your business data in house.
Using Opera 3 on your own premises continues to give you the following benefits:
- Choice to pay upfront or pay monthly with subscription from only £49 per user per month*
- Maintain business data in house
- Use your existing IT infrastructure (Opera 3 runs on your in-house server)
- *cost is per user per month over 5 years based on a 5 user, up to 5 companies solution
For more information, click here
Whether your business is selling a service, a product, products, using call centre, Web based or having single or multiple show rooms, one can list many reasons why you need a Customer Relation Management (CRM) system. Here are 10 good ones:
1) To keep all customers’ data in one place
2) For data to be accessed by all your company’s departments
3) To generate data that allow you to evaluate and develop (or even execute) actions for each customer, marketing campaign, offer and sales representative
4) To provide you with reports to enable you to predict the future of business overall using transactional history and employee performance
5) To provide you with instant data to help you analyse your business and identified gaps in your sales process or customer service
6) To provide you with full history of communications, documents, sales, etc. for all your clients
7) To be able to follow and watch closely your sales process from the start till the end. It should be able to assign leads and track opportunities
8) To plan your actions, campaigns, meetings, etc. and synchronise these plans with standard MS Outlook
9) To enable marketing, selling, and service functions to be automated and integrated.
10) To build and maintain long-term relations with customers
Good CRM should reduce costs, improve service quality, lift productivity, increase customer satisfaction, increase profit and expand business.
Our SalesNotes.net offering meet all of the above plus more, click here for more info
From 1 April 2015, when processing an invoice, VAT will be calculated on the goods value before any prompt payment discount is applied. This change will affect any business that either receives or gives prompt payment discount for prompt payment of an invoice. When the legislation change becomes effective, HMRC must receive the full value of VAT on an invoice if the settlement discount is offered but not taken. Any unbilled sales orders posted before 1 April 2015 require billing from that date under the new rules.
Please note that unbilled SOP quotes, orders etc. will require editing in order to recalculate the VAT on the lines. Progressing and selecting ‘No’ to the edit prompt will not recalculate the lines. If this is done a VAT only invoice will be required. If the Prompt Payment Discount is taken, an accounting adjustment will need to be made to post the discount and to adjust both the goods and VAT values on the VAT Return. In Opera 3 and Opera II this must be done by a credit note posting.
Invoices that offer Prompt Payment Discount, dated before 1 April 2015 must be processed under the old rules. Any receipts received that do take advantage of the discount will not require accounting for under the new rules. You may want to consider billing all relevant outstanding quotes before the new rules apply. If you change quotes or orders on or after 1 April 2015, the VAT will be recalculated using the new rules and will not be the same as the original value.
For more information, please read the full guide
Customer relationship management (CRM) is the backbone of any successful company.
As a business professional you will know that managing customer relationships is the key to successful company growth. IT Architechture recognises that CRM systems are a vital tool that will help you underpin your most important business strategies, enabling you to manage successful relationships with your customers. IT Architechture has successfully implemented numerous CRM installations, but found that many systems are wanting in many respects. For that reason, IT Architechture developed SalesNotes.net CRM software which we believe to be one of the most advanced CRM systems in the market.
SalesNotes.net provides all the essential tools needed to build an effective CRM system to manage and control your sales. It offers:
• Companies and contacts management
• Opportunities management
• Documents management
• Campaigns management
• Quotes and actions generated from the system
• Filter wizard reports integrated with Windows applications such as Microsoft Word and Excel or even to be exported to an external package
• In-built security system
• Cloud based system with no hassle of server installation, back ups, or upgrade worries
SalesNotes.net is an easy to use and an intuitive relationship management system. It is designed to solve sales management problems and bring real benefits to your business. SalesNotes.net is more than just contact management, it is a central resource for you to access all customer data, documents and other information.
SalesNote.net – A feature rich package
• Customise any field or view – Use it how you want to.
• Set actions for clients and users
• Manage marketing campaigns
• Track client correspondence
• Attach quotes, letters, emails and all documents.
• Set future actions and recurrent actions on client records
• Automate quotes, letters and emails
• Create reports and export to MS Word and Excel
• Target specific groups with the campaign management tools
• Search on any field
• Report on any field or criteria
• Synchronise with MS Outlook
• Mail merge using MS Office
• Inbuilt diary and scheduler
• Synchronise data with Back Office systems and accounts package
Statutory changes for 2015
The changes required for completing the 2014/2015 payroll year-end and to start processing in the 2015/2016 tax year are as follows:
Additional Statutory Paternity Leave and Pay will be replaced by Shared Parental Leave and Pay
For parents of babies born on or after 5 April 2015, Additional Statutory Paternity Leave and Pay (ASPP) will be replaced with Shared Parental Leave and Pay (SPL/ShPP). SPL/ShPP allows eligible partners to share parental leave. Under SPL/ShPP:
• Parents can agree to convert a period of maternity leave into shared parental leave. The available shared parental leave is 52 weeks minus the weeks of maternity leave already taken
• The available shared parental pay is 39 weeks minus the weeks of maternity pay already taken
• At least a week must be taken at a time and all leave must be taken before the child’s first birthday
• Parents can choose to be on leave at the same time
• Ordinary Paternity Leave (OPL) is not affected. Fathers can still take up to two weeks OPL and then take SPL/ShPP if required
The rules for adoptions are similar to new births.
Statutory Adoption Pay will be paid at 90% of average weekly earnings for the first six weeks
Where the adoption pay period (APP) starts before 5 April 2015, SAP is paid for the entire 39 weeks at either the standard weekly rate or 90% of average weekly earnings if that’s less. From 5 April 2015 the first 6 weeks will always be paid at 90% of the average weekly earnings. The new entitlement mirrors the current arrangements for Statutory Maternity Pay (SMP). For the remaining 33 weeks the SAP rate will be calculated as before. SAP will also apply to surrogacies for the first time.
New NI category letters M, Z, I and K for people aged under 21
New NI category letters are being introduced to identify employees who are under 21.
Employer NI contributions for employees under 21 are being reduced to a 0% rate up to a new NI threshold called the ‘Upper Secondary Threshold’ (UST). For the 2015/2016 tax year the UST will be aligned with the Upper Earnings Limit (UEL). Employers will still pay 13.8% on any earnings above the UST.
New M and N tax code suffixes for employees who transfer a portion of a tax allowance to their partner, or receive a portion of a tax allowance
From 6 April 2015, anyone who is not liable to income tax above the basic rate will be able to transfer up to £1,060 of their personal allowance to their spouse or civil partner if the recipient is also not liable to income tax above the basic rate. The new tax code suffixes are M and N.
• The M code will identify a person who is receiving the transferred allowance
• The N code will identify a person who is transferring some of their allowance
The new N and M suffix codes will start to be issued by HMRC from April 2015.
Tax deductions will be restricted to 50% of taxable pay for all tax code types
Prior to the 2015/2016 tax year only the ‘K’ tax code restricted the amount of tax that could be deducted to 50% of taxable pay. Under the new rules, the tax deducted in a single pay period will be limited to 50% of Gross taxable earnings for all tax codes.
PAYE, NI and Statutory Payments
The rates, bandwidths and thresholds for PAYE, NI and Statutory Payments will be updated for the 2015/2016 tax year as set out in the Autumn Statement.
Changes in Tax Codes
There will be a general uplift of tax codes with the suffix ‘L’. These suffix codes increase by 60; code 1000L becomes 1060L. The emergency tax code with effect from 6 April 2015 is 1060L.
Student Loan Threshold
The annual student loan threshold will increase to £17,335.
Auto Enrolment Threshold
The auto enrolment thresholds will be updated for the 2015/2016 tax year.
Full Payment Submission (FPS)
The Taxation of Pensions Bill published in October 2014 makes it possible for people aged 55 and over to withdraw either some or all of their pension funds (“flexible drawdown”). The FPS will include an indicator to inform HMRC that this has occurred.
The FPS will also include the address of an employee. HMRC records will then be updated if the address has changed. This address is also included in NINO Verification Requests.
Employer Payment Summary (EPS)
A new field will be introduced into the EPS to include the tax month that recovery and compensation amounts should be allocated against by HMRC. Previously HMRC used the submission date of the EPS to decide the tax month to allocate recovery and compensation.
HMRC has extended the maximum permitted period of inactivity from 6 to 12 months. This extension is included in the EPS
Cleanology, a London based company which provides cleaning services and facilities management, has acquired and implemented Pegasus Opera software.
Cleanology provide first-class commercial and specialist cleaning services in London. In addition, Cleanology also offer a fully-integrated facilities management service, providing additional support services such as security, handyman, recycling, laundry and washroom services to name but a few.
Shirley Dinsmore, Finance Manager, explained:
“We have recently grown the business, and our current accounting and payroll systems were no longer coping with our increasing workload and management reporting requirements. We did our research of available software solutions, looking for an integrated accounting and payroll/ HR solution which would meet our business needs. We opted for Pegasus Opera and are very pleased with it.”
IT Architechture, with their considerable expertise in individual software projects, advised and helped Cleanology with this project. IT Architechture’s Director, Amir Farhan, says;
“Opera has been chosen because it can easily handle a larger workload, this together with its payroll flexibility makes it ideal. The Opera Payroll module allows Cleanology to handle hundreds of employee records with speed and ease. Furthermore, it has a fully integrated Personnel module and a highly functional Online Filing Manager. Opera Payroll can also import timesheets prepared in Excel, and create BACS files ready to import into NatWest Bankline software. Additionally, the system handles auto-enrolment with ease and generates the necessary pension files for uploading to NEST Pensions. This sophisticated payroll solution is further enhanced with the integrated accounting solution comprising Sales, Purchase, Cashbook, Invoicing and Nominal Ledger modules.”
For more information on Cleanology
For more information on Pegasus Payroll Solution
As the holiday season approaches, we would like to take this opportunity to wish you all a very Merry Christmas and a happy and prosperous New Year.
Please note that our offices are closed from 12:30 pm on 24/12/2014 and will reopen on 09:00 am on 02/01/2015.
Should you need to contact us please call 0844 443 4766 and leave a message.