Top Ten things to know on your payroll for the 2016/17 tax year

top ten

  1. National Living Wage – WEF 1st April 2016 workers in the UK over the age of 25 will see a 50p increase to £7.20 per hour.The statutory rates for employees under 25 remain as follows:
    Aged 21-24 inclusive           £6.70
    Aged 18-20 inclusive           £5.30
    Aged 16-17 inclusive           £3.87
    Apprentices under 19 or in 1st year of apprenticeship £3.30
  2. NO employers national insurance contributions up to the upper earnings limit (£827 per week) for 25 and under in a recognised apprenticeship.
  3. Employment Allowance is increased to £3000 per annum. Those with one director only are no longer able to claim the relief.
  4. Student loan – Two plans are now in place. The Student loan Company will notify via HMRC.
  5. Payrolling Benefits  – Real time collection of tax on benefits in kind and expenses through voluntary payrolling. A registration process must take place with HMRC.
  6. Pension schemes – The end of contracted out pension schemes.
  7. All statutory rates to remain as the previous year :
    SSP £88.45 per week
    SMP/SPP £139.58
  8. Holiday pay – additional pay components such as commission and overtime to be included when calculating holiday pay!
  9. Scottish rates – These have been introduced but the rates are the same as the UK !
  10. If you have a PAYE scheme in place you MUST report all employees on your payroll including those below the lower earnings limit (£112 per week).
    For further information please contact the payroll department on 01254 688110 alternatively email payroll@pierce.co.uk.