At Clockwork Contracting Ltd, we are delighted to announce that we have become a member of the Umbrella Leaders Association (ULA). This marks an important milestone in our commitment to providing an excellent umbrella employment service to our clients.

The ULA is an independent, professional body that works to protect the interests of the self-employed and the umbrella sector. As a member, we have committed to adhering to their high standards of service and professionalism. This means that our clients can have complete confidence that we are providing a quality service.

Being part of the ULA will also allow us to tap into a wealth of resources that help us to stay abreast of the ever-changing landscape of umbrella employment. This includes access to expert advice and support, as well as a network of fellow ULA members who can offer guidance and advice.

We are proud to be part of the ULA and are excited about the opportunities this provides for our clients and our business. We look forward to continuing to provide a quality service and being part of the ULA family.

Lots of businesses are still unaware of the alternative options they have when it comes to payroll management. It is usually assumed that organising payroll internally, with one or a few people managing everything, is the most cost-effective approach for smaller and medium-sized companies. 

But, in-house payroll can have numerous disadvantages such as hidden costs and long-term issues, which can affect a company's efficiency and profitability. For this reason, in this post, we will explore the costs involved in managing an in-house solution and outline why you might be better off outsourcing your payroll with a company such as Clockwork Contracting. 

What Makes In-House Payroll Management Expensive?

When it comes to in-house payroll management, there can be a lot of hidden costs that aren’t always visible to businesses at a first glance. Organising your payroll is a complex, tricky skill and there is so much involved in it. It is not just about transferring wages to employees. Over a long period of time, in-house payroll management can lead to extra costs such as;

• Indirect costs for equipment, office space and resources
  
• Upgrades of technology and IT labour costs
  
• Time and labour costs - from admin-heavy manual processes of in-house payroll management
  
• Costs from troubleshooting, human error and legal issues
  
• Partial outsourcing costs - in-house payroll solutions sometimes need to outsource aspects such as tax filing and accounts
  

Compliance Issues

As is to be expected, there is a lot of legislation surrounding employee payroll. When your business chooses to manage payroll internally, this will mean that you have to deal with a lot of compliance issues. 

Doing this can be highly time-consuming and demanding on company resources. It costs lots of money to stay on top of constantly changing laws both domestically and internationally. With an outsourced payroll solution, you won’t face these expenses as there will be full compliance with tax law changes, employment and wage laws, and pension auto enrolment amongst other regulations. 

The Long-Term Nature of Payroll Management

Payroll management can become much more expensive over time, as it is a long-term investment for any business. If you are just beginning in business and you decide to manage your payroll internally, then it will be a long-term cost to your company’s revenue and labour resources. When you outsource your payroll, all of the stress and costs associated with payroll management will disappear, as you’ll have a dedicated service from a specialist 24/7.

Trusted Payroll Company in Bromley

Now that you know more about all of the costs associated with internal payroll management, if you are searching for a reputable payroll company in Bromley - Clockwork Contracting is the provider to choose. 

Outsourcing your payroll with us will eliminate all of the stresses, overheads and administrative burdens of doing it yourself. We provide a dedicated payroll manager who liaises directly with HMRC and/or pension providers on your behalf. 

If you’d like to find out more, then please do not hesitate to contact us today. You can reach us on 0203 0042 262 or email us at [email protected] and we’ll get back to you as soon as possible. 

​

Payslip skimming has been in the news recently, with stories of some of the UK’s leading umbrella companies engaging in the practice. If this is something you’ve heard of, but you don’t quite understand what it means, then this blog is for you. 

In this post, we take a look at what payslip skimming is, and how you can avoid it. Keep reading to find out more, and if you’re looking for a reputable umbrella company, then visit the Clockwork Contracting website today.

What is Payslip Skimming?

Essentially, payslip skimming is when a company is not being fully transparent with its workers on the charges that it applies. For example, they’re marketing a charge to a worker, which most assume is the total cost to them for using that service, but at the same time, they’re applying hidden costs that effectively amount to a profit for the provider. 

Skimming is allowed to flourish in environments where there is a lack of transparency. Within the industry, there have been a number of umbrella companies who have been deliberately following this practice for a number of years. 

In essence, they are deducting an additional fee without it being displayed on the payslip. Many contractors don’t tend to look at their payslips, and so, they’re none the wiser and this practice can go on for many years. 

How Do I Avoid Payslip Skimming?

The main way to avoid payslip skimming is to work with an umbrella company that is trustworthy, open and transparent at all times. This will give you reassurance that they are a provider with integrity and honesty. 

It is imperative that you find the right umbrella company to work with, and Clockwork Contracting is definitely the best choice for you. This is because we provide a range of umbrella company services in full compliance with the requirements and industry standards right now. 

Searching for Umbrella Companies in the UK?

If you’re trying to find a trusted umbrella company in the UK, then Clockwork Contracting is the best choice for you. We are a leading provider of payroll and umbrella company services. We ensure that our services are fully compliant and transparent for all end clients, agencies and contractors. 

To find out more about our services, please give us a call on 02030 042262. You can also reach us by email at [email protected] or drop us a message via the online form on our website and we’ll be in touch with you shortly. We’re on hand to answer any questions you have and provide you with as much information as possible about our umbrella company services. ​

Want to reduce the headache of having to manage your own internal payroll system? Considering switching to an outsourced payroll system from a dedicated provider? There are many benefits to taking this step, and in the post below, the team at Clockwork Contracting takes a look at all of the associated advantages you can gain. 

Read below to find out more, and if you would like to enquire about our payroll services, please contact us via the details at the bottom of this post. 

Will Save you Time

First of all, when you outsource your payroll, it will save you huge amounts of time and energy. You will be able to focus this newfound time into other important areas of your business, such as growing your business through product development, sales and customer service. Overall, outsourcing will save you lots of time that can be better used elsewhere. 

Can Save you Money

Another benefit of outsourcing your payroll is that it can provide you with financial savings too. Whilst of course you will be paying a fee to the payroll provider, when this is actually compared to the potential cost of fines and penalties from mistakes, it can actually be far more cost effective and financially sensible to use an outsourced payroll service. 

Helps Reduce Errors

Payroll errors occur, it’s just a fact of life. However, these payroll errors can be avoided when you transition to a payroll provider. This is because many payroll providers automate aspects of payroll. As a result, what this means is that mistakes and errors can be reduced - most commonly, the ones that occur from manual data entry and calculations. 

Ensures Compliance

Compliance is essential, and when you choose to outsource your payroll, you can better ensure compliance at all times. A payroll provider must stay up to date with all of the changing government regulations and legislation. Therefore, they will be compliant and ensure this across all of their activities. What this means is that you will not have to worry about compliance and completing lots of paperwork to do so.

Searching For Payroll Providers in the UK?

If you are looking for a trusted payroll provider, then Clockwork Contracting is the ideal choice for you. We provide outsourced payroll services, tailored to our clients’ individual needs and requirements. As part of our service, we can provide a payroll manager to liaise with HMRC directly, as well as pension providers, on your business’ behalf. It is all of the benefits of a streamlined payroll department, with none of the difficulties. We provide expert support and services, and are fully compliant and follow the latest legislation as needed in the industry. 

To enquire about our services, please contact us today. You can reach us by phone on 0203 004 2262 to speak with a member of our team. We can answer any questions or enquiries today. Alternatively, feel free to email us at [email protected] and we will get back to you as soon as possible.

re to edit.

So, May and its three bank holidays are now behind us. How is it that we’re almost halfway through the year already?!
​
This month’s newsletter focuses on the government’s announcement that it has reversed its plan to withdraw almost 5,000 EU laws currently in force in the UK.  Read on to understand how this decision has the potential to impact all of us.
But first, a further update about meeting the P11D filing deadline on 6 July.

​ 
I’ve mentioned in previous newsletters that since 6 April 2023, forms P11D (for reporting employee benefits) can now only be filed electronically, which is posing problems for some employers who don’t have much time to obtain payroll software to enable them to do this before the reporting deadline of 6 July. 
But there is another group of employers facing unexpected challenges because of this late change to the method of filing of P11Ds: it is not uncommon for employers to outsource their payroll to two different payroll agents, one company to deal with day to day payroll, and another to complete and submit the P11Ds and everything associated with them.
Unfortunately HMRC’s systems do not currently have the functionality to allow an employer to have more than one agent working for them on the same head of duty, in this case PAYE.  So where does that leave employers who find themselves in this position?
The Institute of Chartered Accountants in England and Wales raised the issue with HMRC who advised that an agent can file P11Ds and P11D(b)s, including amendments, for an “unauthorised” client. They would need to add the client to their unauthorised client list in their Agent portal. Once they have done that, they are then able to file returns on behalf of the client. 
If the agent does not have log in credentials, which could well be the case if they have previously only filed paper returns, they will need to register themselves first, before being able to log in and then add a client to their unauthorised list. 

​Doesn’t Brexit seem such a long time ago? With everything that has happened since, COVID and the war in Ukraine spring immediately to mind, it’s easy to forget that once upon a time we were all keen to know how Brexit would impact payroll, and indeed our lives in general, and that we haven't yet felt the full effect of our departure from the EU.
The driving force for many Brexiteers was the desire to take control of our own laws, and the Retained EU Law (Revocation and Reform) Bill was therefore welcomed as the route to UK autonomy. The Bill contained a “sunset clause” which meant that any EU law, initially retained when we left the EU on 31 December 2020, would be automatically repealed at the end of 2023, unless it had been specifically preserved or replaced.  
However, there were many who had grave concerns that this “sunset clause” would have an adverse impact on employment law, and workers could lose access to long-established rights that currently form an integral part of Britain’s standing as a fair nation, such as holiday pay or protection against fire and rehire.
It was not unexpected then that the news that the government has now decided to scrap the “sunset clause” from the Bill met with mixed reactions.  
Instead of the approximately 4,800 retained laws being discarded on 31 December this year, only around 600 pieces of retained EU law will be set out in a revocation schedule. Any laws not listed in the revocation schedule will be automatically retained.
However, there are some key pieces of legislation affecting payroll and HR professionals, and indeed all of us, that the government is looking to change:

Holiday Entitlement:
Currently we are entitled to 5.6 weeks (28 days) annual leave each year. That is broken down in to two parts; four weeks that we are entitled to as a result of the EU Working Time Directive, and 1.6 weeks that come from the UK’s Working Time Regulations. The government plans to merge these two separate leave entitlements into one pot of statutory annual leave of 5.6 weeks. Whilst most employees won’t know or care about these different types of leave, this will bring a welcome simplification to payroll professionals.
Rolled Up Holiday Pay:
Despite the fact that rolled up holiday pay is illegal, and has been for some years, many employers still use this method of calculating and paying holiday pay, especially for workers with irregular working patterns. However, the outcome of the Brazel v Harpur Trust court case was to declare it unlawful to use the 12.07% method to calculate holiday entitlement, which is central to the calculation of rolled up holiday pay.  
The government now plans to introduce rolled up holiday pay into law, so some workers are able to receive holiday pay with every payslip, rather than when they take their holiday. This is done by adding money onto every hour of pay to represent the holiday pay, and then not paying the worker when they actually take leave.
Now that we are no longer subject to EU law, the government is also consulting on its plan to allow the 12.07% calculation method, which would make it easier to calculate rolled up holiday pay should these reforms come in as proposed. 
Record Keeping Requirements:
The UK’s WTR require employers to keep “adequate records” such as the maximum daily/weekly working time, including for night workers and young workers.
But EU case law takes this much further than the WTR ruling that, in order to comply with the EU’s Working Time Directive, employers must also record the daily working hours for each worker.
The government plans to remove this EU law, reducing the record keeping burden on employers.
Employers will, however, still need to:

• Keep records of time worked to ensure payment is made at the appropriate National Minimum Wage rate
• Keep records to show employers are complying with the maximum 48-hour week

Transfer of Undertakings (Protection of Employment) Regulations (2006)
The government is consulting on an employer’s duty to consult in TUPE situations.
Currently, employers must collectively consult with employees affected by a TUPE transfer via elected employee or union representatives. Individual consultation is only allowed for microbusinesses – ie. where a business employs 10 employees or less.
The government plans to remove the requirement to consult with elected representatives for businesses with fewer than 50 people and transfers affecting less than 10 employees.
This will reduce the need for many SMEs to elect representatives in TUPE situations, but may mean they have to complete more individual consultations.
Restriction of Non-Compete Clauses
The government has also proposed a new law to limit the length of non-compete clauses to three months. A non-compete clause is a section in the contract which prevents a departing employee from working for a similar or competing business.

​In a press statement, the Department for Work and Pensions (DWP) celebrated ten years of automatic enrolment (AE). Since this transformational policy was implemented, over ten million employees have contributed to their workplace pension.

At the end of the statement, the DWP discusses future plans, including pension dashboards and midlife MOT's

Also confirmed, is that the government is exploring abolishing the Lower Earnings Limit for contributions and reducing the eligible age to 18. These plans have previously been discussed in a private members bill, but confirmation of the DWP actively taking interest is promising for its success.

Currently anyone under 21 working in the UK are classed as Non-eligible jobholders - meaning they are not enrolled into a workplace pension scheme. If they are still with their current employer when they reach their 22nd birthday they will opt-in to their workplace pension scheme.
With the proposed change anyone employed over 18+ will be enrolled into a pension scheme and both the employee and employer would have to contribute.

We will keep an eye out of any changes prior to the published article.