With Christmas and New Year celebrations now becoming a distant memory, businesses are settling back into work for 2019.
Without doubt, the main focus for businesses this year is Brexit, but the uncertainty around the deal is making companies feel unprepared for change.
However, there are some payrolling changes that will be introduced from April 6 which businesses can plan for now.
Changes from the new financial year include:
- Changes to hours on payslips – employers will be required to provide the number of hours being paid on the payslips of employees who are paid according to ‘time worked’.
- Payslips for all workers – currently all people in full-time employment receive a payslip, but from April it will also become compulsory for non-employees such as freelancers and contractors to receive a payslip.
- Welsh tax rates – for the first time, a proportion of the income tax paid by 1.34 million taxpayers living in Wales will directly fund Welsh public services.
- Pension auto-enrolment – presently under auto-enrolment, 5% of qualifying earnings are set aside for the employee’s retirement, of which at least 2% must be paid by the employer. In April, this will increase to 8% of qualifying earnings of which at least 3% must be paid by the employer.
- National Minimum Wage and National Living Wage – the hourly rates will also increase:
- For 25 year olds and over – an increase from £7.83 to £8.21
- 21 to 24-year olds – an increase from £7.38 to £7.70
- 18 to 20-year olds – an increase from £5.90 to £6.15
- Under 18s – an increase from £4.20 to £4.35
- Apprentices – an increase from £3.70 to £3.90
- Termination payments – payments over £30,000 are currently subject to income tax and will also be subject to Employer National Insurance Contributions from April 2019.
- Student loans – the Department for Education is introducing a new loan type, the Postgraduate Loan (PGL). The threshold for paying back the loan in 2019/20 is £21,000, earnings above this will be calculated at 6%.
For more information on the changes to payrolling, email email@example.com