Payroll year end – Are you ready?
With the payroll year end upon us, there is compliance to be done and lots of changes to consider for the 2018/19 tax year.
The year end reporting needs to be completed and P60’s need to be given to every employee on the payroll by 31st May 2018.
The national minimum wage and national living wage is changing again with effect from 1 April 2018, the new rates are:
25 Years and over £7.83
21 Years to 24 Years £7.38
18 Years to 20 Years £5.90
Under 18 Years £4.20
As of April 6th, Pay In Lieu of Notice (PILON) is subject to Income tax and National Insurance. The existing £30,000 Income Tax exemption on termination payments will be retained, if the payment is in excess of £30,000 then it will be subject to Income Tax.
Employment Allowance will be available again in the new tax year. This is available to the majority of employers who pay Class 1 National Insurance, up to a maximum of £3,000 each tax year. This is claimed through the payroll.
Auto Enrolment will be having some big changes in the next couple of years. As of 6th April 2018, minimum pension contributions are changing to:
Employee Percentages 3.00%
Employer Percentages 2.00%
If you are already a payroll client of Caldwell Penn, don’t worry, we will do all the necessary checks and ensure that you are compliant. If you are looking for payroll advice please get in touch and we will be happy to talk through your needs.