Dear 1 2 Cloud Payroll Users

Important - Introduction of charges for 1 2 Cloud Payroll Services
Given the current economic conditions and energy prices the costs for providing our cloud payroll service have risen more than we anticipated. Therefore, and regrettably, the only way for us to continue to offer our service is to introduce charges to all our customers.

The details of the charges are shown below:

1. Commencement Date for Charges: 6th January 2024.
   Your first invoice will be on 8th February 2024 covering the usage period from 6th January 2024 to 5th February 2024. Subsequent months invoices will follow in the same date ranges, I.e. covering periods from the 6th of one month to the 5th of the next month.


2. Charging Model: Our billing structure operates on a Pay-Per-Use model, which is determined by the number of employees and/or leavers who have had FPS returns e-filed in that Tax month, regardless of their pay frequency.
   
   i.e. whether an employee is paid weekly and has four separate weekly FPS returns e-filed or is paid monthly with only one FPS return submitted, the cost will remain uniform and be counted as a single employee charge.



2.1 Individual Company Prices

2.1.1 - RTI Payroll Prices Monthly:
Price Category	No. of Employees / Leavers e-Filed FPS	Cost (exclusive of VAT)
A	1 - 2 Employees	£ 5 / month
B	3 - 5 Employees	£ 10 / month
C	6 - 9 Employees	£ 15 / month
D	10 - 15 Employees	£ 25 / month
E	16 - 20 Employees	£ 30 / month
F	21 - 30 Employees	£ 40 / month
G	31 - 50 Employees	£ 50 / month
H	51 - 80 Employees	£ 60 / month
I	81 - 100 Employees	£ 70 / month
J	101 - 120 Employees	£ 80 / month
K	121 - 150 Employees	£ 100 / month
L	151 - 200 Employees	£ 120 / month
M	201 - 300 Employees	£ 150 / month
N	301 - 500 Employees	£ 200 / month
O	500+ Employees	£ 0.5 / employee / month




2.1.2 - P11D / P11D(b) Prices:
P11D Returns	£ 5 / P11D employee / year
P11D(b) Returns	£ 10 / company / year




2.1.3 - CIS Prices:

The CIS usage cost is exactly the same as RTI Payroll Prices. The counting of the number of sub-contractors charged for is based on the number of sub-contractors E-Filed per tax month in your CIS300 Monthly Returns. The price includes FREE sub-contractor verification requests and downloading and various reports.




Price example 1: Assuming you have 100 employees, some paid weekly and some paid monthly, but you only processed the wages for 95 of employees / leavers during the month, the charge for that month will be £70 + VAT for that month If in the following month 79 of the employees / leavers were processed, the charge for that month will be £60 + VAT for that month. Price example 2: Assuming you have 3 weekly and 1 monthly employees and only 2 were processed at any time in that month, the charge will be £5 + VAT for that month.





2.2 Pay Bureau / Agent Prices

Effective from 6th January 2024, each Pay Bureau / Agent will be subject to a two-tier pricing structure, consisting of the Base Price and Usage Cost.

2.2.1 - RTI Payroll Prices Monthly:
No. of Employees / Leavers e-Filed FPS	Cost (exclusive of VAT)
Base Price	£ 10 / month
Per Employee per month	£ 0.20 / month




2.2.2 - P11D / P11D(b) Prices:
P11D Returns	£ 5 / P11D employee / year
P11D(b) Returns	£ 10 / company / year




2.2.3 - CIS Prices:

The CIS usage cost is exactly the same as RTI Payroll Prices. The counting of the number of sub-contractors charged for is based on the number of sub-contractors E-Filed per tax month in your CIS300 Monthly Returns. The price includes FREE sub-contractor verification requests and downloading and various reports.




Base Price The Base Price is a fixed monthly fee of £10.00 for every Pay Bureau, regardless of the number of clients it serves. Whether you have one client or five hundred clients, the Base Price remains a constant £10.00. Usage Cost In addition to the Base Price, there will be a Usage Cost associated with each employee / leaver whose payroll is processed through the system. The Usage Cost is set at £0.20 per employee per month, regardless of whether they are paid on a weekly or monthly basis. Total Charge The Total Charge for the bureau will be the sum of the Base Price and the Usage Cost. VAT Please note that all prices mentioned are exclusive of VAT.

Price example 1: If the bureau processes the pay of 15 different individual employees / leavers in one month (5 monthly paid and 10 weekly paid), the total cost for that month will be: Usage Cost: £0.20 x 15 = £3.00 Total Cost: £10.00(Base price) + £3.00 = £13.00 plus VAT for the month. Price example 2: If the bureau processes the pay of 60 different individual employees / leavers in one month (50 monthly paid and 10 weekly paid), the total cost for that month will be: Usage Cost: £0.20 x 60 = £12.00 Total Cost: £10.00(Base price) + £12.00 = £22.00 plus VAT for the month. Price example 3: If the bureau has a total of 200 clients with 200 employees / leavers whose pay is being processed (100 monthly, 50 weekly, 20 quarterly, and 30 annually), the total cost for that month will be: Usage Cost: £0.20 x 200 = £40.00 Total Cost: £10.00(Base price) + £40.00 = £50.00 plus VAT for the month. Price example 4: If the bureau does not process any payroll for any employees / leavers in a month, the total cost will be £0.00 and no invoice will be issued.



3. Opt Out: You can opt out at any time before the charge period starts without incurring any cost, however, any FPS and/or P11D returns you e-file to HMRC though our software on and after 6th January will be subject to charge.