Mar
2023

Pay As You Earn Wages And Salaries Tax Scheme Explained

PAYE is the common abbreviation for the Pay As You Earn scheme that was first introduced by the UK in 1944 as a tax system by the inland revenue which employers administer to deduct from employees wages and salaries income tax and national insurance contributions and account for the employers national insurance contributions. Although strictly speaking not part of the PAYE scheme employers also use the pay as you earn framework and documents to administer other deductions.

Every employer in the UK must register as an employer with the tax authority. Register to administer a PAYE scheme is obligatory if the employee has other paid employment or has earnings at or above the PAYE threshold and liable for deductions of income tax, or has earnings at or above the national insurance lower earnings level. Registration can take place up to four weeks before the first qualifying employee is engaged.

The Paye system is a scheme whereby employees are deducted income tax and national insurance on a weekly or monthly basis according to the frequency of wage and salary payments by the employer who then pays the income tax and national insurance contributions over to the inland revenue in the UK each month.

The employer is also responsible for keeping a record of the employers national insurance contributions which together with the employee deductions are paid over to the tax authority on or before the 19th of the month following the pay period. Small business that has a quarterly liability to income tax and national insurance less than 1,500 pounds per quarter can arrange to pay the PAYE every three months rather than every month.

PAYE administration involves the calculation of income tax using a tax code system. Each employee is allocated a tax code which consists of a number equal to approximately one tenth of the personal tax allowance as adjusted by the employee personal tax adjustments. Special conditions and circumstances for each employee is usually representing in the tax code with a letter known as a suffix to the prefix tax code number.

The financial tax year in the UK is from 6 April one year to 5 April the following year with each tax year divided into 53 specific week numbers that accounts for days over at the end of the year and also into 12 monthly periods. Income tax deducted is calculated by the employer operating the PAYE scheme on a cumulative basis during the tax year by using either manual tax tables or a payroll software package. The tax table is arranged to determine the tax free allowance each pay week or month during the year according to the employee tax code.

To calculate the income tax the employer determines the cumulative tax free allowance in a specific week or month and deducts this allowance from the cumulative gross pay that employee is due at that tax week including current wages or salary and all previous income earned during the current tax year including any earnings from other employers. Having established the taxable pay that amount is then applied to the percentage of income tax to be paid under the current tax rules for that financial year.

The employer is responsible for deducting the correct amount of income tax, issuing the employee a payslip to advise the income tax deducted and also for paying the income tax deducted to the tax authority. The PAYE calculations and production of payslips is an essential function of payroll software that many employers adopt to ensure accuracy and compliance with the regulatory bodies tax rules.

The second major area of PAYE administration is for employees to deduct national insurance contributions from employees. National insurance contributions are calculated not on a cumulative basis as income tax but are calculated according to the gross income earned in a specific pay period based upon the gross pay during that weekly or monthly pay period.

The amount of national insurance deducted is determined by looking up the employee gross pay on a national insurance deductions table. A different national insurance table is applied according to the personal circumstances of the employee. In addition to the employee national insurance contribution each employer also has to pay an employer national insurance contribution.

PAYE administration is a series of payroll and deductions documentation related to the payment of wages and salaries to employees. The majority of businesses use payroll software to automate the calculations and produce the information required for the PAYE returns.

The starting point of the PAYE system is the P45 which all employees receive when they leave an employment and is a certificate of the cumulative gross pay and income tax deducted up to the date of the P45. Details from the P45 also include the employee tax code that must be entered into the employee PAYE records to enable the new employer to calculate the income tax due to date.

If an employee does not hand the new employer a P45 then they are taxed on a week to week basis until the tax code and cumulative income tax position are known. Confirmation of an employee tax position is obtained by the new employer by submitting a P46 form to the Inland Revenue when an employee does not have a P45.

Having engaged an employee and deducted income tax and national insurance contributions the employee must receive a payslip from the employer showing the gross pay, deductions and net pay. In additional the employer also needs to maintain records of payments to the employee and deductions made. Payroll software can produce these records and the Inland Revenue also provide small employers with a P11 deductions working paper for this purpose.

At the end of the financial tax year for payroll three main PAYE documents are required to be completed by each employer. Each employee has to be given a P60 certificate of earnings and deductions during the financial year. The P60 is an important document and often required for many diverse purposes unconnected with the PAYE system such as future mortgage applications and other purposes as proof of income.

The employer also has to complete a P14 for each employee which is the form on which the employee deductions and statutory payments are recorded. The P14 is sent to the Inland Revenue.

In addition every employer also has to complete a P35 which is the Annual Employers Return which lists the name of every employee, the income tax deducted and national insurance liability including employee and employer contributions. The P35 also includes statutory payments made to employees and the amount of the employer has already paid to the Inland Revenue. In the UK employers can receive a tax free bonus for filing the P35 details online.

Mar
2023

How To Make Money As A Real Estate Bird Dog

There are many ways to make money with Real Estate. In my opinion, one of the easiest ways to make money with in this business is becoming a Real Estate Bird Dog. Stop before you rush out the door! You’ll still have to work at it. However, many of us believe it’s far easier with fewer headaches than many other techniques.

What is a Real Estate Bird Dog?

A Real Estate Bird Dog is a person, or in some cases a company, who locates investment property for Investors.

Why would Investors pay for a service like this? Simple. Many Investors are business people who are busy making money. They don’t have time to hunt down good deals in major real estate markets. This is where you into play.

What do I have to do?

The most important thing to know to become a successful bird dog is know your local market. To do this, bird dogs seek out relationships with real estate brokers, agents, bankers, lenders and anyone else who may have knowledge of a good investment.

In most markets, the bird dog will be a person who already works in the real estate field, for example a Agent or perhaps an assistant to a Real Estate Agent. However, I know Bird Dogs who do nothing other than find investment deals for investors.

How do you make money with this?

Normally once a bird dog finds several investments or investment leads, they then present them to the investor. When/if they buy the investment, the real estate bird dog is paid a service fee which is typically a percentage of the price of the investment or it could be a flat fee, it depends on the bird dog.

What are the advantages?

One advantage is that once you hand the property off to the investor, you job is done. You don’t have to worry about setting up financing, inspections or any other of the headaches that can come with investing in real estate.

How much can a real estate bird dog expect to make?

Obviously it depends on what percentage of the deal you decide your time and effort is worth, but some command as high as a 10% finders fee. I’ve heard of higher fees, but most that I’m aware of run in the 3 to 6% range.

Are there any disadvantages?

Well, for one, in some states, if you find real property for an investor and then charge a fee, they feel you need a real estate license. Check with the State you live in before going into this.

Whatever you do, get everything in writing. At the worse case, you’ll have to take a few nighttime classes and get your real estate license. There are worse things to do! At the least, you’ll just have to start networking with the industry in your market to get in on the ground floor of becoming a real estate bird dog.

Mar
2023

What Is Travel Marketing?

Like other niche industries, the travel industry is an entity of its own. Consequently, the ideal marketing solutions for this industry are travel-specific and dedicated to this large and very dynamic field. Marketing to the travel industry involves its various sub-categories like hotels, tour operators, airlines, etc.Yet like most marketing done today, travel marketing is intensely data-driven-it has to be in order to be cost-effective and ultimately successful.

It’s All about the Numbers
A careful examination of data reflects a minutia of details that are important to businesses working in the travel industry. Depending on the data you examine, it might tell you whether it’s profitable to market your boutique hotel to families or what time of year it’s best to market your airline ticket specials. Marketing, of course, is an investment so it’s important that the investment pays you back. Choosing a travel marketing specialist with reliable data is, of course, the ideal way to begin your strategic marketing plan.

Data for Business Optimization
How can data help specific travel-related businesses market better to increase business? Agencies that capture data find it so important that their entire business models are completely based upon it. Moreover, it has fallen to their expertise with managing this data to update it. When businesses contract with a travel marketing firm they have access to the data sets they need to make the smartest decisions about their marketing campaign-and ultimately about their money. Of course, it isn’t always easy to understand the numbers or the trends within those numbers so companies have also come to rely upon the optimization specialists in their preferred travel marketing agency who understand how to transform data into an actionable marketing plan.

Translating the Numbers
How can data help you if you are a car rental company or a hotel chain? In other words, what can a travel marketing agency do for you? Whatever the business-hotel, car rental, cruise ship, airline, or some other tourism-based endeavor-a travel marketing agency can help the business expand its customer base, tailor its operations to its most successful offerings, and inevitably make more money. It does this through various measures depending on the business in question.

In the case of hotels, for instance, a travel marketing firm can drive bookings through the hotel’s website, increase brand awareness with data-backed results, reach likely customers, and even find ways to engage frequent flyers. Similarly, travel marketing agencies can increase bookings for cruise and airlines by recommending timely offers. Moreover, it may increase profit for these businesses by identifying ancillary revenue opportunities.

Working with the Experts
While a company’s own marketing executives have definitive know-how and a level of business-specific expertise that is immensely important for any company, the travel marketing agency has a broad level of travel-specific expertise that regularly looks at the big travel picture-a perspective that can be essential for a travel-related business. Working with a renowned agency is a decided way to expand and improve business through carefully wrought marketing solutions that are based on reliable data. Chances are if you are a business that relies on tourism or travel, this data and these experts could dramatically help you too.

Mar
2023

Small Loans For Bad Credit – How To Get Small Bad Credit Loans

Many people who are looking for a loan don’t necessarily need a lot of money. Whether it is money to tide you over until you next paycheck or a small loan to help pay off a debt, there are many lenders that are willing to offer small loans for bad credit. These loans come in variety of different forms and are provided for different needs, so if you are looking for small loans for bad credit, you are sure to find one that will help.

Small loans without credit checks are often a good choice if you have poor credit but still need a loan. These loans are normally offered in amounts under $1000, and the lender will usually collect only enough information about you to make sure that you have the ability to pay back the loan. Lenders who are willing to offer small loans for bad credit can be a valuable tool for people who have had past difficulties with credit. Once you obtain a loan, be sure that you pay it back on time so that the lender will report your good payment history to credit bureaus which can help raise your credit score. You can find lenders that offer loans without credit checks by searching for online credit companies that specialize in small loans for bad credit.

Small car loans for bad credit are another option that is available to you. Having poor credit can make it very difficult to get a loan that will help you purchase a car, but most people need a car that will help them get to and from work and school. Finding small car loans for bad credit may not be as difficult as you think. If you are willing to commit to paying back a loan, there are companies out there that will help you find a small car loan for bad credit. Spend some time researching different lenders and find out what they can offer you before you start shopping for a vehicle. If you are able to show a car sales lot that you have a pre-approved loan for a car, you will often be able to negotiate for a lower price on the vehicle you want since the sales lot won’t have to find a loan for you.

Small loan rates for bad credit are often higher than rates offered to people who have good credit. Thanks to the large number of lenders offering small loans for bad credit, you will find that you are still able to get a loan with a competitive rate despite credit troubles. When you need small loans for poor credit, don’t avoid looking for a loan just because you think your credit history will keep lenders from loaning you money. Instead, focus on finding a loan with terms and rates that you can afford. Once you find a company that offers small loans for bad credit, you will find that after paying off a loan, the company will often be willing to increase the amount of money they will lend you.