PAYROLL SERVICES – AUTO-ENROLMENT - KiQi Chartered Certified Accountants

KiQi Accountants, KiQi Chartered Certified Accountants are trading names of KiQi LTD Company No: 12935261 hence We/Us/Our/I means KiQi LTD

SCHEDULE OF SERVICES

This schedule should be read in conjunction with the engagement letter and the standard terms and conditions.

Payroll Services

Recurring compliance work

[We will prepare your UK payroll for each payroll period to meet UK employment tax requirements, where paying actual as opposed to deemed employees, specifically:

calculating the pay as you earn (PAYE) deductions including at the Scottish and Welsh rates of income tax, if applicable;

calculating the employees’ national insurance contributions (NIC) deductions;

calculating the employer’s NIC liabilities;

calculating statutory payments – for example, statutory sick pay and/or statutory maternity pay;

calculating reclaims of statutory payment – for example, maternity payments;

calculating employee and employer pension contributions for employees and workers who are members of workplace pension schemes (including those who are auto-enrolled) on the basis of the information you provide;

claiming employment allowance;

calculating, if appropriate, apprenticeship levy;

calculating other statutory and non-statutory deductions; and

submitting information online to HMRC under real-time information (RTI) for PAYE.

[Where a director/employee of your company is a deemed employee of a client under the IR35 rules, we shall calculate the deemed employment payment(s) and account via payroll to HMRC for associated PAYE tax, including at the Scottish and Welsh rates of income tax if applicable, and employee and employer NIC;

Where the off-payroll working rules apply to work carried out by your company for your clients and your company pays the personal service companies of deemed employees, we will prepare your UK payroll for each payroll period to meet UK employment tax and off-payroll working requirements, specifically:

calculating the pay as you earn (PAYE) income tax deductions, including at the Scottish and Welsh rates of income tax, if applicable;

calculating the employees’ NIC deductions;

calculating the employer’s NIC liabilities;

calculating other statutory and non-statutory deductions [including apprenticeship levy];

indicating that the individual is a deemed employee using the off-payroll worker marker (OPW); and

submitting information online to HMRC under Real Time Information (RTI) for PAYE.]

[Where you are onward paying to an employee/director of the company fees received by the company where the employee/director has been treated as a deemed employee in the payroll of a third party under the off payroll working rules, we will prepare your UK payroll for each payroll period to meet UK employment tax and IR35 and off-payroll working requirements, specifically:

treating the employees’ pay up to the amount of net fees received under the off-payroll working rules as not subject to pay as you earn (PAYE) income tax deductions nor employee or employer national insurance contributions, and

submitting information online to HMRC under Real Time Information (RTI) for PAYE.]

[where client has contractors working for it via their own PSCs]

Where you have contractors working for your company through their own personal service companies, we shall help you to determine whether or not your company is “small” under the off-payroll working rules.

Where you have contractors working for your company through their own personal service companies and your company is not “small” under the off-payroll working rules we will help you to determine the deemed employment status of those contractors.

Where you have contractors working for your company through their own personal service companies and your company is not “small” under the off-payroll working rules we will help you prepare employment status determination statements to give to those contractors and labour supply agencies that you have contracted with.

If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists.]

We will prepare and send to you the following documents before the time of payment through the payroll or due date for delivering information to HMRC:

payroll summary report showing the reconciliation from gross to net for each employee [and deemed employee] and all relevant payroll totals;

[the data included within each] full payment submission (FPS) for taxable pay and payrolled benefits for each employee [and deemed employee];

a payslip for each employee [and deemed employee] unless not required;

a P45 for each leaver [both actual and deemed employees];

a report showing your PAYE and NIC liability student loan repayments [of actual employees but not deemed employees] and apprenticeship levy and due date for payment; and

a report showing pension contributions payable in respect of each employee [but not deemed employee] to the respective workplace pension scheme(s) of which they are members and the due date(s) for payment.

We will submit FPSs online to HMRC [after the data to be included therein has been approved/on the basis of the data provided] [delete as appropriate] by you. FPSs must reach HMRC normally on or before the payday. You must ensure that the data provided to us is complete and accurate, and your attention is drawn to your legal responsibilities as set out at paragraphs 14 and 15 below.

For each tax month we will prepare, where appropriate, an employer payment summary (EPS) from the information and explanations that you provide to us. (Examples of EPS data include statutory payments, employment allowance, Construction Industry Scheme deductions, apprenticeship levy allowance allocated to the PAYE scheme, apprenticeship allowance payable to date and confirmation that no payments were made to employees.)

We will submit EPSs to HMRC [after the data to be included therein has been approved/on the basis of the data provided] [delete as appropriate] by you. (EPSs must reach HMRC by the 19th of the month following the tax month to which they relate). You must ensure that the data provided to us is complete and accurate, and your attention is drawn to your legal responsibilities as set out at paragraphs 14 and 15 below.

At the end of the payroll year we will:

prepare the final FPS (or EPS) and submit this to HMRC [after the data to be included therein has been approved/on the basis of the data provided] [delete as appropriate] by you. (The final FPS (or EPS) for the year must reach HMRC by 19 April following the end of the tax year.) You must ensure that the data provided to us is complete and accurate and your attention is drawn to your legal responsibilities as set out at paragraphs 16 and 17 below

prepare and send to you form P60 for each employee on the payroll at the year-end so that you can give them to employees by the statutory due date of 31 May following the end of the tax year

[prepare and send to you a statement for every employee for whom benefits-in-kind (BiK) have been payrolled, identifying every benefit provided to each employee during the tax year and the cash equivalent of each benefit treated as PAYE income so you can give them to employees by the statutory due date of 31 May following the end of the tax year (Include if payrolling BiK and your payroll software will not show this information on final payslips for the tax year.)]

[give you details of the class 1A NIC on payrolled BiK, which will need to be accounted for on form P11D(b) and the due date for payment (Include if BiK are payrolled and amend if client wants the class 1A figures every month. Modify if practitioner will complete and submit P11D(b)]

[give you details of the class 1A NIC on expenses accounted for in the payroll, which will need to be accounted for on form P11D(b) and the due date for payment (Include to pick up expenses accounted for in the payroll for tax but subject to class 1A NIC and amend if client wants the class 1A figures every month. Modify if practitioner will complete and submit P11D(b)]

[give you the figures that need to be included on forms P11D to account for income tax in respect of expenses for which class 1 NIC has been accounted for in the payroll (Include to pick up expenses accounted for in the payroll for class 1 NIC but included on P11D for tax – for example, non-business element of home telephone bills in the name of employee. Modify if practitioner will complete and submit P11D(b)]

We will submit national insurance number (NINO) verification requests as appropriate to verify or obtain a NINO for a new employee.

Note that we will only deal with the nominated person within the organisation. Any enquiries from individual employees concerning their wages or other payroll details will be referred back to that responsible person.

PAYROLL SERVICES – AUTO-ENROLMENT

As part of the preparation of your UK payroll, we will:

calculate the deductions to be made from each worker’s pay;

calculate the contribution you as an employer are obliged to make to the scheme; and

process through the payroll any refunds from the scheme.

We will include the pension payments on the following documents:

the payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals;

the payslips for each employee (unless payslips are not required);

a report showing your total pension contributions (employees and employers) and due date for payment.

We can provide advice to you regarding your choice of a pension scheme, but we are not authorised to provide specific advice to your employees. You are responsible for choosing a pension scheme that meets the automatic enrolment qualifying criteria and we recommend that you take appropriate independent advice.

We can assist you by:

providing factual information about pension schemes;

helping you to compare schemes;

referring you to a specialist adviser; and

referring you to guidance issued by The Pensions Regulator on pension scheme selection.

We will help you to establish which category each worker falls into, whether entitled worker, eligible jobholder or non-eligible jobholder.

[We will prepare and send to you a notice to send to each non-eligible jobholder that sets out certain information about opting into an automatic enrolment scheme and what this means for them. If the non-eligible jobholder chooses to opt in, you will enrol them onto the scheme on receipt of an opt-in notice. We will assist you in this process. We will send information to the pension scheme about those non-eligible jobholders who choose to opt in.]

[We will prepare and send to you a notice to send to each entitled worker, giving them information about joining a pension scheme and what it means for them. This includes new starters and those becoming eligible to be enrolled by age or earnings. They do not need to be automatically enrolled but have the right to opt in. You will arrange membership to a scheme for those entitled workers who choose to join and complete a joining notice. This can be a different scheme to the one used for auto-enrolment. We will assist you in this process.]

[We will prepare a notice for you to give to the eligible jobholder telling them that they have been enrolled, setting out what that means for them and also detailing their right to opt out (and to opt back in again).] You must re-enrol eligible jobholders every three years. We recommend that you establish a process for this review.

We will, on receipt of the scheme information from you and the pension provider, assist you when you make your declaration of compliance to The Pensions Regulator.]

[Ad hoc queries by way of telephone and email enquiries are not routine compliance and may result in additional fees. As indicated below, where appropriate we will aim to discuss and agree additional fees, but it may not always be possible to agree these in advance and we reserve the right to charge you an additional fee for these queries.]

Ad hoc and advisory work

Where you have instructed us to do so we will provide such other taxation ad hoc and advisory services as may be agreed between us from time to time. These services will be subject to the terms of this engagement letter and standard terms and conditions of business unless we decide to issue a separate engagement letter. An additional fee may be charged for these services. Examples of such work include:

advising on ad hoc transactions (for example, termination payments to employees) and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax and NIC liabilities;

dealing with any compliance check or enquiry by HMRC into the payroll returns;

preparing and submitting any amended returns or data for previous tax years and corresponding with HMRC as necessary;

where your company is a personal service company, helping you to determine deemed employment status under the IR35 rules for work undertaken for clients by the company;

where your company is a personal service company and deemed employment status under the IR35 rules applies to work undertaken for clients by the company, calculating deemed employment payments and accounting through payroll to HMRC for tax and NIC etc;

where the off-payroll working rules apply and your company pays deemed employees’ personal service companies, accounting via payroll for tax and NIC etc on the payments

where you have contractors working for your company through their own personal service companies, helping you to determine whether or not your company is “small” under the off-payroll working rules;

where you have contractors working for your company via their own personal service companies and your company is not “small” under the off-payroll working rules, helping you to determine the deemed employment status of those contractors and prepare employment status determination statements to give to those contractors and labour supply agencies that you have contracted with;

helping with setting up and administering workplace pension schemes, including referring you to appropriate specialists where necessary;

[agreeing with you which employer-provided BiK will be processed through the payroll and for which employees, registering the PAYE scheme to payroll BiK, processing through the payroll cash equivalent notional amounts, notifying HMRC of in-year changes, advising you on the payment of associated class 1A NIC, preparing and submitting return P11D(b), and notifications to employees;]

preparing and submitting returns P11D and P11D(b) for employee BiK and expenses, and advising on the payment of associated class 1A NIC (such work if undertaken is covered in a separate schedule of services);

assisting you in the operation of the Construction Industry Scheme (CIS) for subcontractors;

conducting PAYE, and benefits and expenses health checks; and

helping you to allocate apprenticeship levy allowance across your different PAYE schemes/group companies/connected charities.

Where specialist advice is required on occasion, we may need to seek this from or refer you to appropriate specialists. We will only do this when instructed by the nominated person.

Changes in the law or public policy and practice

We will not accept responsibility if you act on advice given by us on an earlier occasion without first confirming with us that the advice is still valid in the light of any change in the law or public policy and practice or your circumstances.

We will accept no liability for losses arising from changes in the law or public policy and practice that are first published after the date on which the advice is given.

Your responsibilities

You are legally responsible for:

ensuring that the data in your payroll submissions is correct and complete;

making any submissions by the due date;

paying tax and NIC on time.

Failure to do this may lead to penalties and/or interest.

Employers cannot delegate this legal responsibility to others. [You agree to check that submissions that we have prepared for you are correct and complete before you approve them.]

You are responsible for maintaining your employees’ information, including any changes to the employees’ bank account details.

To enable us to carry out our work you agree:

that all information required to be delivered online is submitted on the basis of full disclosure;

to provide full information necessary for dealing with your payroll affairs and workplace pension scheme contributions; we will rely on the information and documents being true, correct and complete, and will not audit the information or those documents;

to agree with us the name[s] of the person[s] authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individual[s];

to advise us in writing of changes of payroll pay dates and workplace pension scheme contribution dates;

to notify us at least [ ] working days [or such other period as agreed with us] prior to the payroll pay date of all transactions or events that may need to be reflected in the payroll for the period, including details of:

all new employees (including full names, address, date of birth, gender, national insurance number) and details of their remuneration packages
all leavers and any termination payments
all changes to remuneration packages
all pension scheme changes
all changes to benefits and expenses reportable under an existing payrolling benefits and expense online service registration
irregular and/or ad hoc payments and the dates to be paid;

to [approve/provide the data required to complete]
in-year FPS by at least [ ] working days prior to payroll pay dates so that they can be submitted on or before payday, or as agreed with us
in-year EPS by at least [ ] days prior to 19th of the month following the tax month
final FPS (or EPS when applicable) for the year at least [ ] days prior to 19 April following the end of the tax year
EYU within [ ] days;

to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

[where client is a PSC and a deemed payment calculation is needed owing to a director/employee being a deemed employee under IR35 rules] [To enable us to calculate the deemed employment payment(s), you agree to provide us with the following information by [insert date] for each assignment for which a director/employee was a deemed employee of the client:
fees for off-payroll work paid by the client to the company;
payments that would have been employment income made by the client directly to the director/employee;
expenses paid by the company to the director/employee that would have been deductible for tax against employment income had the director/employee been directly employed by the client;
capital allowances on equipment bought by the company for the deemed employment;
pension contributions paid by the company for the director/employee; and
salary and benefits paid by the company to the director/employee and PAYE tax and employee NIC, and as a separate figure employer NIC, accounted for to HMRC.]

You will keep us informed of material changes in circumstances that could affect the payroll. If you are unsure whether the change is material or not, please let us know so that we can assess its significance.

Where you wish us to deal with HMRC communications you will forward to us all communications received from HMRC. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because HMRC is not obliged to send us copies of all communications issued to you.

You are legally responsible for:

ensuring that your payroll and pensions records are correct and complete; and

making payment of pensions contributions on time.

You will keep and retain the records required by law. These include:

records about jobholders and workers, eg name, date of birth, national insurance number, gross earnings, contributions, gender, address, status within the pension scheme, opt-in notice, opt-out notice and joining notice; and

records about the pension scheme, eg employer pension scheme reference, scheme name and address, and other information in respect of specific pension schemes.

You must retain these records for six years except for requests to leave the pension scheme, which must be kept for four years.

You are responsible for choosing an eligible scheme and for regularly reviewing that it meets the automatic enrolment qualifying criteria, and we recommend that you take appropriate independent advice.

You are responsible for providing all relevant information to the trustees or managers of the pension scheme within the statutory period.

You are responsible for the monitoring of workers’ age and earnings and agree to advise us on any change in categorisation or status of your workers.

You are responsible for monitoring opt-in and opt-out requests and where workers with the right to opt in or opt out exercise that right. If required and requested by you, we will assist you in providing appropriate information for you to provide to the jobholder.

You are responsible for providing the required statutory information to your workers. This includes writing to new starters and those becoming eligible to be enrolled by age or earnings within six weeks of them meeting the age or earnings criteria.

You will enrol all eligible jobholders into an eligible pension scheme on the appropriate date.

You are legally responsible for:

choosing your re-enrolment date from within a six-month window, which starts three months before the third anniversary of your automatic enrolment staging date and ends three months after it; and

assessing your job holders, including those enrolled into the scheme and those you will put back into the scheme.

You are required within five calendar months [from the start of your legal duties and thereafter] when re-enrolling eligible jobholders to make a declaration of compliance with The Pensions Regulator.
To enable us to carry out our work, you agree:

to provide full information necessary for dealing with your workers’ pensions; we will rely on this information and documents being true, correct and complete, and will not audit the information or documents;

to agree with us the name(s) of the person(s) authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that (those) individual(s);

to advise us in writing of changes of payroll pay dates;

to notify us at least [ ] working days prior to the payroll date of all transactions or events that may need to be considered in relation to auto-enrolment obligations for the period, including details of:

all new workers and details of their remuneration packages
all leavers and details of termination arrangements for all workers
changes in categorisation or status of your workers
all opt-in and opt-out requests from your workers
all remuneration changes for all workers
all pension scheme changes.

You will keep us informed of material changes in circumstances that could affect the pension scheme, workers and deductions. If you are unsure whether the change is material or not, please let us know so that we can assess its significance or otherwise and to seek your authority to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.

Where you wish us to deal with them you will forward to us all communications received from The Pension Regulator. These must be provided in time to enable us to deal with them as may be necessary within the statutory time limits. It is essential that you let us have copies of any correspondence received because The Pension Regulator is not obliged to send us copies of all communications issued to you.

If the information required to complete the payroll services set out above is received later than the dates specified above or agreed with us, we will still endeavour to process the payroll and returns to meet the agreed payroll date and filing deadlines but we will not be liable for any costs or other losses arising if the payroll is late or the returns are filed late in these circumstances. We may charge an additional fee of £[ ] for work carried out in a shorter time period.

Our services as detailed above are subject to the limitations on our liability set out in the engagement letter and in paragraph 18 of our standard terms and conditions of business. These are important provisions, which you should read and consider carefully.

You must also refer to the attached schedule confirming data processing details.

Rashid Accountants, Rashid Chartered Certified Accountants, KiQi Accountants, KiQi Chartered Certified Accountants are trading names of KiQi LTD Company No: 12935261 hence We/Us/Our/I means KiQi LTD

Schedule to Payroll Services schedule of services

Our obligations (as data processor) to you (as data controller)

We will process personal data only on documented instructions from you, including with regard to transfers of personal data to a third country or an international organisation, unless required to do so by EU law or the law of a Member State; in such a case, we shall inform you of that legal requirement before processing, unless the law in question prohibits such information on important grounds of public interest.

We will obtain a commitment of confidentiality from anyone we authorise to process the personal data, unless they are already under a statutory obligation of confidentiality.

We will take all measures required pursuant to Article 32 of the GDPR.

We will not engage another processor without your prior written consent. If you provide such consent, we will only engage another processor in compliance with the requirements of Article 28(2) and 28(4) of the GDPR. [where sub-processors are used, refer to the terms required as set out in the using sub-processors section of Contracts and liabilities between controllers and processors and amend this sample text accordingly]

Insofar as is possible, we will assist you in fulfilling your obligations to data subjects under chapter III of the GDPR.

We will assist you in ensuring compliance with your obligations pursuant to Articles 32 to 36 of the GDPR.

At the end of the contract [we will delete all the personal data we have been processing for you]/[we will return to you all the personal data we have been processing for you], save insofar as we are required by law to retain any of the personal data.

We will make available to you all information necessary to demonstrate compliance with the obligations laid down in Article 28 of the GDPR.

We will allow you (and/or an auditor appointed by you) to carry out audits and inspections in respect of compliance with the obligations laid down in Article 28 of the GDPR, and will contribute to such audits and inspections.

We will inform you immediately if we consider we have been given an instruction which infringes the GDPR and/or other EU and/or Member State data protection provisions.

Our responsibilities under GDPR

Nothing within this contract relieves us of our own direct responsibilities under the GDPR.

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