RSM Australia’s Post

With recent legislative shifts impacting NDIS providers, from new support lists to upcoming Payroll Super requirements, adapting quickly is essential. Rising costs, labor shortages, and cash flow constraints add to the pressure. RSM Australia's Thiru Kandiah and Kirsty McGovern-Hooley explore how providers can be more resilient and manage their cashflow. For more insights on navigating these challenges, read our latest article. #NDIS #RSM #BusinessAdvisory #NDISProviders #FinancialStrategy https://lnkd.in/ghTV_3D2

Key Strategies for NDIS Providers Amid Industry Challenges With recent legislative shifts impacting NDIS providers, from new support lists to upcoming Payroll Super requirements, adapting quickly is essential. Rising costs, labor shortages, and cash flow constraints add to the pressure. To stay resilient, providers should focus on: * Precise invoicing & debt collection – for consistent cash flow. * Clear payment terms – to manage cash inflow from multiple sources. * Budget alignment – especially with new Payroll Super obligations. * Regular financial reviews – to stay proactive and make informed decisions. For more insights on navigating these challenges, read our latest article. #NDIS #RSM #BusinessAdvisory #NDISProviders #FinancialStrategy

REPORT EMPLOYEE BENEFITS ON FORM P11D BY 6 JULY If you are an employer or are the director of a limited company, don’t forget that you need to tell us of any ‘benefits in kind’ so we can file your P11D before the deadline. P11D forms for reporting expenses and benefits in kind provided to employees and directors in 2023/24 need to be submitted by 6 July 2024. Note that paper forms are no longer acceptable; the return must be made online using PAYE Online for employers or commercial software. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee's duties. Dispensations from reporting are no longer required, although HMRC would expect internal controls to be in place to ensure that the expenses qualify. Note also that trivial benefits of no more than £50 provided to employees need not be reported. This typically covers non-cash gifts to employees at Christmas and on their birthdays and can include gifts of food and alcohol. Again, the employer needs to keep a record of the benefit provided and the justification. It should not be provided as a reward for past or future service. We will have already sent you a request for information. The deadline is fast approaching so don’t get caught out. As always with HMRC, failure to file your P11D leads to an automatic penalty. #P11D #EmployeeBenefits #HMRC #accountants #TheCloudAccountants #CloudAccountingServices #CloudAccounting #AdamFernandes

A more than interesting read, with Allied Health wages increasing and the lack of (quality and quantity) of practitioners surely NDIS funding rates need to be increased in line with those costs. With tertiary entrance ranks for Physio, Speech, OT surging into the 90s there will be continuous wage pressure and NDIS rates need to reflect this. One way or another the federal government needs to find university training and or NDIS/Medicare rates to make the provision of services viable. At the moment there seems to be a shortage in both types of funding …

£171,296,046.05 FROZEN BY HMRC – IS YOUR WORKFORCE AFFECTED? The Judgement: Ducas (Service provided by MaxiPay https://lnkd.in/ete-NCmw), is said to be involved in fraudulent conduct relating to the supply of thousands of individual health care workers to NHS Trusts via recruitment agencies in a manner calculated to defraud HMRC of secondary Class 1 National Insurance Contributions (“Employer NICs”). Ducas supplies a number of UK recruitment agencies (the “Agencies”) with individual health care workers. The Agencies in turn supply those workers onward to a large number of organisations seeking workers, principally, NHS Trusts. HMRC estimate that the arrangements which have been operated in the present case involve about 30,000 such workers. Ducas contracts with its customers (the Agencies) on terms that Ducas will be the employer of the supplied workers, and that it will deduct PAYE income tax and primary Class 1 National Insurance Contributions (“Employee NICs”) from those workers’ earnings and return any amounts due, including Employer NICs, to HMRC.  (full judgement here: https://lnkd.in/daPy-ewJ) ADVICE & HOW CAN WE HELP? 1.    Avoid the temptation to directly pay workers gross. The tax liability will then become yours as the fee payer. Start doing the right thing today. 2.    HMRC will undoubtedly investigate all those individuals paid in this manner. Start doing the right thing today. 3.    DO NOT JEOPARDISE YOUR BUSINESS MODEL The ANSWER ·      Make the most of a bad situation ease your cashflow now!  ·      Umbrella is not necessarily the right answer because of additional VAT pressure! ·      LOOK at our HMRC reviewed and recognised JOINT-EMPLOYMENT Model and mitigate the VAT where possible Contact us today at marketing@peoplegroupservices.com or call 0345 034 1530 DON'T DO NOTHING - ACT NOW! #agencyowners #recruitmentleaders #nhs #nhsrecruitment #rcruitmentnews #recruitment #healthcarerecruitment #nurses #healthcare

Ensuring your hours worked and what you invoice align is crucial for accurate billing in your NDIS business. I see it quite often that people manually input their timesheet data into their invoicing system, sometimes making mistakes, missing out on hours or incorrectly tabulating them. These are honest mistakes but they can cost you. Cross-checking your invoices against your timesheets before you send them out can help identify these errors before they impact your bottom line. At the end of the day, accurate and transparent billing will help build trust with your participants and their plan managers, demonstrating you run an efficient and fair business. ------ I am one of only a few Australian accountants who understands the unique position of the disability sector and its complex regulations. DM me if you need help with bookkeeping, accounting, tax or business advisory services. #ndis #ndisaccountant #business

Bulk billing support to ease cost-of-living pressure https://lnkd.in/gk2TgkPA The Bulk-Billing Support Initiative will legislate to provide a new ongoing payroll tax rebate for contractor GPs at clinics meeting bulk-billing thresholds and a waiver for past unpaid payroll tax liability up to 4 September 2024. This initiative aims to protect bulk billing rates, reduce financial pressures on GP practices, and prevent clinics from closing. It will also help reduce strain on busy hospital emergency departments. NSW Health estimates that a 1% decrease in bulk-billing equates to around 3000 additional emergency presentations. The NSW Government will offer ongoing payroll tax rebates to clinics with bulk-billing rates above 80% in metropolitan Sydney and above 70% in the rest of the state. #BulkBillingSupport #HealthcareReform #GPPractices #NSWHealth #MedicalFunding #PublicHealth

FAQ of the Week: Q. An employee informed us that her spouse had lost his job and asked if she was still eligible to participate in our DCAP (Dependent Care Assistance Program). How does a spouse’s employment affect a DCAP? A. A foundational rule for the DCAP income exclusion is that eligible expenses must be incurred to enable both the employee and their spouse to be “gainfully employed.” An employer must also have a “reasonable belief” that the employee is entitled to the DCAP income exclusion. But this does not mean that this employee is ineligible to contribute to a DCAP or submit expenses for reimbursement. The employee can continue to contribute to the DCAP and receive reimbursements as long as the spouse is actively looking for work. Expenses incurred while actively searching for work are considered expenses enabling one to be gainfully employed. However, if the period of unemployment is significant the employee should understand that the maximum DCAP reimbursement is capped at the spouse’s earned income for the year. That means if the spouse is unemployed for most of the year and only earned, for example, $3,000 for the year, tax favored reimbursements would be limited to $3,000. Amounts reimbursed in excess of either the employee’s or spouse’s earned income will be recharacterized as taxable on Form 2441 when the family files their taxes. The employee can also choose to stop contributing to the DCAP because, unlike other cafeteria plan elections, DCAPs elections are very flexible and can be changed anytime the need for care changes.

Another day, another umbrella company drama. This time it involves £171 million of missing Employer's NIC. The case is The Commissioners for HMRC v Ducas LTD & Ors. Ducas Ltd, who supplies thousands of individual health care workers to NHS Trusts via recruitment agencies, is accused of defrauding HMRC of Employer NICs. HMRC estimates that this case involves about 30,000 health care workers It appears Ducas has been passing on payments from recruitment agencies to its associated company, Enix, which pays most of these workers gross directly into their personal services companies (“PSCs”) without PAYE/NIC deductions. The result is that no Employer NICs have been paid to HMRC in respect of the Enix Workers’ earnings. It may also be the case that PAYE tax and Employee NICs remain unpaid for these workers too, but HMRC is not currently pursuing this aspect.........yet. Ducas’s liability, just for Employer NICs alone, has been quantified by HMRC at £171,296,046.05. Is HMRC going to be able to claw back the £171 million? Case in the comments.

Around 1 in 6 employments are exempt from the increase in #NIC. The NHS is the biggest employer in the UK, with over 2m employees. In total there are around 6m public sector employees The UK has 33m employees.in total. The public sector won't pay the increase in #NIC. Concentrating them on the private sector means the £25bn is being raised from the employers of only 81% of the workforce. Private sector employers may look to move some of their jobs to lower NIC jurisdictions or as highlighted in my post about Pizza Hut earlier today, look to find ways to automate and reduce reliance on UK staff.. Crowe UK Crowe Global https://lnkd.in/euaeyeBh