Currently browsing Legislation FAQs

How do I notify my Pension Provider an employee has opted out?

It is the employee who must contact the pension provider to inform them they wish to opt-out and get an “opt-out notice“. This opt-out notice will then be passed to the company for action in payroll, either via the employee or directly from the provider. The following contains more detailed information from…

Read more

How do I process a Week 53?

Week 53 If you run a weekly payroll you might find you need to complete an additional period after week 52 to finish your PAYE tax year. If your normal repeating pay date falls on the 5th April you have to complete the additional period for your tax year to be…

Read more

How to set Directorship & Directors NI Calculation

Directors If the employee is or has been, a director since 6th April then KashFlow Payroll needs to know the date that the directorship started (and ended if in the current Tax Year) and the NIC Calculation Method (National Insurance Contributions).  A director can choose to have their NICs calculated…

Read more

NI Rate X is showing on employees P60

HMRC expects an X code to be entered if the employee’s earnings are below the Lower Earnings Limit (LEL) for national insurance, irrespective of the national insurance code allocated to the employee.

Read more

No P60’s produced for leavers

At the end of the tax year none of the leavers in KashFlow have had a P60 produced. This is correct. Only active employees at the end of the tax year will get a P60. For any leavers during the tax year the P45 issued at the time of leaving replaces the…

Read more

Small Employer Relief: Statutory Payment Recovery & Compensation

Small Employer Relief Status A companies small employer relief status will dictate what they can claim from HMRC when paying employee statutory payments. A company would qualify for small employers relief if the total NIC (National Insurance Contributions) bill (Ee’s + Er’s) for the previous tax year is less than…

Read more

What is a Week 1 / Month 1 Tax Code?

What is a week 1/ month 1 tax code? How is this calculated differently from a normal tax code? When you use the option week 1/ month 1 with a tax code the software will calculate an employees tax based only on the taxable pay they receive in that pay period and…

Read more

See how KashFlow works with your business and your books