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.





2.2 Pay Bureau / Agent Prices

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.



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.