As the world of finance and accounting continues to evolve, so do the rules and regulations that govern it. Recently, the UK government announced a relaxation of the rules for reporting salary advances ...
Always ensure any salary advance falls within the scope of the new rules!
A salary advance is a payment made to an employee before their regular payday, usually to cover unexpected expenses or financial difficulties. They are now reported using the usual PAYE RTI system as part of the amount paid on their normal payday.
"It means less paperwork and admin for payroll professionals!"
Additionally, the relaxed rules only apply to salary advances, not to loans or other forms of financial assistance provided by employers. It's crucial to carefully review the nature of any financial assistance you offer to an employee to ensure the size or timing of the advance doesn't look like a loan.
Always ensure any salary advance falls within the scope of the new rules so it's important to stay informed and communicate these changes to your employees in order to ensure compliance and maximise the benefits of the new rules.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the new rules around salary advances, it may be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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