Big year for Auto Enrolment for charities
2016 is (another) big year for Auto Enrolment for charities (AE), not least for the many smaller charities that must stage this year. In addition, it been three years since AE came into force for larger companies and 2016 sees the first triennial re-enrolment. And the surprise ‘emergency pause’ announced by the government in the Autumn Statement – namely that contribution rises will now be delayed from October 2016 to April 2017, effectively reducing employee contributions. This will give respite to those not for profit organisations looking at squeezed funding in 2016.
SSL security accreditation changes
Internet security is changing and SHA2-SSL security accreditation will affect the way in which charities access Bacs via the Payment Services Website and Bacstel-IP. Existing smartcard, digital certificate and signing solutions will be replaced in due course by sponsoring banks with new ones which provide a higher level of security around the process for logging on, signing and submitting Bacs files.
National living wage
At the end of his budget speech in July 2015, Chancellor George Osborne announced that workers aged over 25 would be entitled to a “national living wage” from April 2016, set at £7.20. Voluntary organisations now have to consider four different wage bands, all with different rates and relating to different age groups, including the Minimum wage, (Official) living wage, (New) living wage and London living wage.
Changes to P11D’s
Under the changes to the PAYE regulations, payrolling – namely collecting tax on benefits in real time – comes into force from tax year 2016/2017. So for P11Ds due for completion by July 2017, benefits such as medical, cars and vans will be subject to tax through the payroll.
Shared parental leave for grandparents
Following the introduction of Shared Parental Leave last year, the Chancellor has unveiled a plan for shared parental leave and pay to be extended to one nominated working grandparent.The plan will involve extending the current system of shared parental leave to cover grandparents, as well as the child’s mother and father.
Scottish rate of income tax
Clearly this raises issues for Not for Profit’s employing staff resident in both tax areas, though the HMRC will identify who’ll be a Scottish taxpayer – employers should only use a Scottish tax code if advised by HMRC.
HMRC: Changes to operating procedures
HMRC is facing a massive shake-up, from the digitisation of the tax system to the closure of 137 offices that will be replaced with thirteen regional centres. The impact could be significant as the disruption occurs and customer service may suffer. If your not for profit organisation looks regularly for HMRC support and guidance it might be better to get your ship in order sooner rather than later.
Possible tax simplification
The Office of Tax Simplification (OTS) is continuing its push to address the complication created by running National Insurance and income tax separately – especially for small organisations. This could be good news for not for profit organisations struggling with the administrative burden.
Part-time season tickets
New flexible season tickets will soon be available on certain rail routes across the country with those charity personnel who commute able to buy part time season tickets if they wish. Of course for charities who use a benefits package to attract new staff this extra layer of complexity will increase the administration burden.
Strategic Investment in HR
With employment levels at an all-time high and Not-for-Profit organisations struggling to balance budgets and recruit key skills, 2016 is set to be a year of outsourcing, as managers look to minimise the administrative overhead and concentrate on key added value activities including:
Outsourcing routine HR processes, including payroll, will enable over-stretched HR teams to concentrate on building the strong, committed and well skilled workforce.