Articles and information in relation to UK Payroll for business, employers and employees.
As the New Tax Year day 6th April 2025 arrives, so does a plethora of changes to taxation. For those who have Electric Cars through employer schemes, the company car tax is increasing by 50% today. Whether provided as a normal company car or via a car purchase scheme, EV scheme, Salary Sacrifice, or other … Continue reading Electric Company Car Tax increases +50%
Over 3 million eligible workers are to receive a pay rise of up to £1,400 a year as new National Minimum Wage and National Living Wage rates take effect during April or May. Pay rise worth an extra £1,400 per year for an eligible full-time worker delivered. New rates put more money back into the … Continue reading New minimum wage rates for pay periods starting from 1st April 2025
With the increase to employers secondary National Insurance to 15% and the lowering of the Secondary Threshold to £5,000 per annum for all payments of wages and earnings from Sunday 6th April 2025, HM Revenue and Customs (HMRC) have published the revised National Insurance Contribution (NIC) tables to be operated. Payroll software will have been … Continue reading National Insurance Tables published for 2025/2026
Changes to company size thresholds for off-payroll working Where an engager or business needs to consider the off-payroll working (OPW) rules there is an important change relating to company size thresholds. From 6th April 2025, the government thresholds that determine if a company is classified as ‘small’ change. This means that for accounting periods beginning … Continue reading IR35 Off Payroll Working – trigger threshold change
UK Postcodes The UK postcode is a combination of between five and seven letters and numbers which define four different levels of geographic unit. It is part of a coding system created and used by the Royal Mail across the United Kingdom for sorting mail. The postcodes are an abbreviated form of address, which enable … Continue reading Payroll and the importance of postcodes
As part of announcements in the Spring Statement 2025, the government have launched a further consultation seeking views on whether HM Revenue and Customs (HMRC) powers are effective in dealing with non-compliance facilitated by some tax advisers. It will be of particular interest to tax advisers, their clients or potential clients and tax and accountancy professional … Continue reading Tackling tax advisers facilitating non-compliance
Monthly estimates of payrolled employees and their pay from HM Revenue and Customs’ (HMRC’s) Pay As You Earn (PAYE) Real Time Information (RTI) data. Early estimates for February 2025 indicate that the number of payrolled employees broadly stayed the same compared with February 2024, at 30.4 million; a small rise of 0.2% or 67,000 employees. … Continue reading Earnings and employment to February 2025
HMRC have issued the February 2025 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE end of year reporting employers PAYE and Construction Industry Scheme repayments basic PAYE Tools — new release … Continue reading February 2025 Employer Bulletin
Only two months left to boost State Pension by filling gaps in National Insurance records from 2006 onwards Since the launch of the digital service April2024, 37,000 people have topped up more than 68,000 years, worth £35 million Those wanting to maximise their State Pension by plugging gaps in their National Insurance record have contributed … Continue reading £35 million added to State Pension pots
Government lays legislation confirming that the new National Living Wage and new National Minimum Wage will take effect from 1st April 2025 Millions of workers set for significant pay increase in April to improve living standards and drive growth Pay boost worth £1,400 a year for an eligible full-time worker as Government takes significant step … Continue reading April 2025 payrise boost to pockets of over 3 million workers
The minimum wage rate that apply across the whole of the United Kingdom have risen significantly over these past few years with, the age range of the highest rates is steadily moving to start at age 18 years. 1st April 2025 see the latest rise announced by the Labour government at the Autumn Budget. The … Continue reading Make your views heard on the future of the minimum wage
The Low Pay Commission (LPC) published its report into compliance and enforcement of the National Minimum Wage. The LPC estimates (based on statistics from the employers ASHE data) that around 371,000 workers were underpaid in April 2024. This represents a slight increase on the previous year but is below estimated numbers from the pre-pandemic period. … Continue reading Over 370,000 underpaid in April 2024
HMRC have issued the December 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE employer National Insurance contributions and Employment Allowance changes announced at Autumn Budget 2024 automatic enrolment … Continue reading December 2024 Employer Bulletin
Statutory Parental Pay In the UK there are a number of statutory parental leave rights which include some form of pay: Statutory Maternity Pay (SMP) - up to 39 weeks with 6 weeks of higher entitlement Statutory Adoption Pay (SAP - similar to SMP Shared Parental Pay (ShPP) - generally the sharing of any stopped … Continue reading How much pay for KIT and SPLIT?
The UK Government announced the increase basis for Statutory Payment rates along with other benefits and have released the proposed rates operational from April 2025. On Wednesday 30th October 2024 the following was announced: I have concluded my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The … Continue reading Statutory Payment Rates 2025 increased by 1.7%
Equal Pay Day Wednesday 20th November 2024 was marked as Equal Pay Day, a national campaign led by the Fawcett Society. This day marks the point in the year when, based on the gender pay gap, women overall in the UK stop being paid compared to men. Commenting on the Fawcett Society’s Equal Pay Day, … Continue reading Women’s pay and equality
There is a common misconception that employers are somehow responsible for an employees tax affairs. A view probably based on the fact that they do deduct Income Tax from pay. Many then query why they later receive a tax bill, or more pleasantly, a tax refund. Payroll operates on a basis of assumptions, so do … Continue reading Personal Allowances: adjusted net income
PAYadvice author Simon Parsons is a contributor to the GPA magazine 04:05 Global Payroll, in this months edition he covers subjects relating to the Christmas holiday season. So from why the UK New years is not the same as the tax year. And a number of seasonal topics for this Christmas and other holiday season festivities … Continue reading GPA – UK payroll – I’m dreaming of an alright Christmas
HMRC have issued an update to guide E24 on 1st November 2024 in relation to the operation of a Tronc for the distribution of tips. New requirement now apply to ensure that. Tips are received by the workers and not retained by the employing business. Section 6 of the E24 guidance has been updated to … Continue reading Tips, gratuities and service charges – Troncs
As part of the Autumn Budget 2024 documentation Annex A, the company car tax rates for April 2025 have confirmed a +1% rise from 6th April 2025. For those with Electronic Vehicles (even via salary sacrifice schemes), the company car tax (yes it is a company provided car even via a lease company) applicable rises … Continue reading Company Car Tax goes up – April 2025
Dear PAYadvice.UK Yesterday [Wednesday 30th October 2024], the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, made her Autumn Budget speech and set out the government’s fiscal plans. This [communication] provides you with information on the key measures announced in the Autumn Budget 2024 that will be relevant to you as an agent. Tax related … Continue reading Autumn Budget 2024 – HMRC
As part of the Autumn Budget 2024 information, the government have confirmed that from April 2026, it will be mandatory to payroll all benefits in kind except for: employment related loans and accommodation Payrolling for these two benefits will be introduced on a voluntary basis, also from April 2026, and the government will set out the … Continue reading Payrolling of benefits mandated – April 2026
The HMRC SDST has issued the following confirmation information to the software developer community on the changes to National Insurance which apply from 6th April 2025. On 30 October, the Government announced changes to the National Insurance contributions (NICs) Secondary Threshold, Secondary Class 1 rate, an increase in Employment Allowance (EA), and the removal of … Continue reading Payroll 2025-26: changes to NICs rates and thresholds and to Employment Allowance
Chancellor announces pay rise for over 3 million workers next year, as National Living Wage rises by 6.7%. Chancellor Rachel Reeves announces pay rise for over 3 million workers next year, as National Living Wage rises by 6.7% Pay boost worth £1,400 a year for an eligible full-time worker – a significant move towards delivering … Continue reading Autumn Budget 2024 – Pay boost for millions with National Minimum Wage increases
The image of the umbrella is significant as many of the named tax avoidance and those issued with official stop notices are umbrella organisations. Some even operate across the public sector. The workers are not all high paid, and the resulting tax bill for tax not paid on what is earnings, wages, employment income, can … Continue reading Tax Avoidance promoters – the list keeps growing – now over 120+
According to the government, business and working people deserve a secure, supportive working environment that will in turn boost growth and productivity. The government state it is committed to fair work, in which good employers and good employees thrive. The Plan to Make Work Pay is to support more people to stay in work, make … Continue reading Statutory Sick Pay consultation
As part of the October 2024 Employer Bulletin, HM Revenue and Customs (HMRC) are asking employers to to assist with protecting workers from getting caught using tax avoidance schemes which do not work. The HMRC tax avoidance ‘don’t get caught out’ campaign helps workers such as contractors spot the signs of bad tax advice and understand their … Continue reading Help protect workers from getting caught out by tax avoidance
Almost half a million people working for more than 15,000 real Living Wage Employers throughout the country are set for a vital cost-of-living pay boost, as the real Living Wage rates rise to £12.60 an hour across the UK (60p or 5% increase), and £13.85 an hour in London (70p or 5.3% increase). Recent research … Continue reading Real Living Wage increases to £12.60 in UK and £13.85 in London
As part of the October 2024 employer bulletin, HMRC are reminding employers of RTI data items to report in relation to business tax identifiers. Many employers have struggled to appropriately identify the correct values to be reported via payroll. Improving data capture of business tax identifiers on the RTI Full Payment Submissions The HMRC Unique Customer … Continue reading Data capture of business tax identifiers on RTI FPS
As part of the October 2024 Employer Bulletin, the HMRC has provided information for employers where they may have a PAYE charge query. PAYadvice offers additional comments to aid clarification and guide employers on options for resolution. Although HMRC often blames the employer or their payroll for errors on employer PAYE accounts, there is a … Continue reading My HMRC account does not balance – PAYE charge queries
As part of the October 2024 Employer Bulletin, the HMRC has reminded employers of the impacts that salary sacrifice (salary exchange, smart schemes, flex benefits) have in relation to National MinimumWage regulations. Being compliant with minimum wage law is not about the starting rate of pay, but about the rate received across all working hours … Continue reading How salary sacrifice affects National Minimum Wage
For the second year running, Christmas Day and New Year’s Day don’t fall on weekends and there are no substitute days. So when are the Christmas and New Year Bank holidays? For England Wales and Northern Ireland matches: In Scotland there are variations and an alternate day applies for St Andrew’s day which would normally … Continue reading Christmas 2024 and New Year 2025 – when are the Bank Holidays and what about paying early?
HMRC have issued the October 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. Introduction In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE introduction of a new statutory allowance from April 2025 — Statutory Neonatal Care Pay … Continue reading October 2024 Employer Bulletin
The Department for Business and Trade (DBT) have published the enforcement results of National Minimum Wage (NMW) and the National Living Wage (NLW) during the 2022 to 2023 financial year The significant increases to the NMW and NLW in recent years mean a growing proportion of workers are earning within a narrow range of the NMW/NLW rates. Due to the rising … Continue reading Minimum pay enforcement results
Issued Wednesday 25th September 2024 Dear PAYadvice.UK, I am pleased to advise that the 2025-26 RTI technical pack for internet submissions is now available on GOV.UK at Real Time Information support for software developers. Software Developer Support Team HMRC CDIO EPS | Enterprise Integration Services So what are the changes? The changes for the April 2025 tax … Continue reading PAYE RTI 2025-2026: technical pack published
The HMRC Software Developers Support Team (SDST) have issued an update on the RTI changes for April 2025. The following is a brief summary based on the information issued: Statutory Neonatal Care Pay (SNCP) As indicated on 3rd June 2024, to support SNCP there will be one new data item in the Full Payment Submission … Continue reading April 2025 RTI changes latest
HMRC have issued further policy information on the new Statutory Neonatal Care Pay and Leave (SNCP&L, SNCL and SNCP). These new rights apply from 6th April 2025 where a baby needs neonatal care within the 28 days from their birth. The leave and pay entitlements are in addition to any other statutory parental leave and … Continue reading Statutory Neonatal Care Pay (SNCP) and Leave – April 2025
HMRC have issued the August 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE employer liabilities and payments viewer — ‘Earlier Year Update’ becomes ‘end of tax year adjustment’ … Continue reading August 2024 Employer Bulletin
The Department for Education on 13th August 2024 confirmed annual updates to repayment thresholds for undergraduate Income Contingent Student Loans. Income Contingent Student Loans for Plan 1 (1998-2012) undergraduate loans The repayment threshold for Plan 1 loans will rise to £26,065 from 6th April 2025 to 5th April 2026. Income Contingent Student Loans for Plan … Continue reading Student Loan Plan 1 and 2 threshold increases April 2025
The Government has extended the consultation on the Child Maintenance Service (CMS) to ensure there is suitable time for feedback from external organisations. The consultation, launched 8th May 2024, is a chance to discuss ways the CMS can help to increase the number of children being kept out of poverty. DWP Lords Minister, Baroness Maeve Sherlock: This government … Continue reading Child Maintenance consultation extended
We’re changing the way the Minimum Wage is set so it keeps in line with the cost of living. What changes are being made to the Minimum Wage? The government are changing the way the Minimum Wage is set so it keeps in line with the cost of living. For the first time, the Low … Continue reading Minimum Wage changes
HMRC have added Blizzard Pay Ltd (BPL) to their named list of tax avoidance scheme promoters. So how did Blizzard claim to work? Individuals within the Blizzard Umbrella provided services to end clients as employees of BPL. Employees receive part of their BPL remuneration at a rate close to the National Minimum Wage or National Living Wage which … Continue reading Blizzard added to the tax avoidance promoters list
Lees of Scotland are another retailer caught out by the complex National Minimum Wage regulations and their efforts to help employees via a salary deduction savings scheme which they operated for over 30 years. Well known for their manufacture of teacakes, snowballs and macaroons, Lees operated a savings scheme where its workers voluntarily paid contributions … Continue reading Minimum wage and the Payroll Savings scheme dilemma!
As part of the new Labour governments proposed 40 bills which formed part of the Kings Speech delivered on Wednesday 17th July 2024, was the inclusion of proposed changes to National Minimum Wage, forming part of the first 100 days commitment. My Government is committed to making work pay….Kings Speech 2024 The new government has … Continue reading Minimum Wage Revolution – is it about to happen?
As part of the Kings Speech delivered on Wednesday 17th July 2924, the Starmer Labour government set out its intention to extend rights with the Employment Rights Bill. My government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights. … Continue reading Employment Rights Bill
The Pension Regulator (TPR) is reminding employers who recruit summer or other types seasonal workers of their legal duties for workplace pensions. If you employ seasonal or temporary staff you must assess them individually every time you pay them. This includes staff who work for you for a few days, a few weeks or several … Continue reading Employing seasonal or temporary staff – don’t forget pensions
PAYadvice author Simon Parsons is a contributor to the new GPA magazine 04:05 Global Payroll, in this months edition he covers the increasing use of Tax Planning and Tax Avoidance measures which appear to be expanding in use in the current cost of living crisis. However, where some may work, other don’t and HMRC are … Continue reading GPA – UK Payroll – Tax Planning and Tax Avoidance Measures Becoming Prevalent
Do you operate salary advance schemes for your employees either directly or through an Earned Wage Access provider? As part of the HMRC July 2024 Employer Bulletin, they have published an article that relates to salary advance arrangements between an employer and an employee and revised RTI FPS obligations. These schemes (sometimes also referred to … Continue reading RTI FPS reporting salary advances relaxation
With statistics showing a drop in generosity through payroll giving over the past few challenging years, the HMRC are reminding employers within the July 2024 bulletin on the advantages available to charities, employers and employees through payroll giving (sometimes referred to as Give As You Earn). They remind us that the UK is one of … Continue reading Payroll giving – supporting charities
HMRC have reminded employers as part of the July 2024 employer bulletin, the Real Time Information (RTI) setting required and some of the practical operation requirements as they relate to off-payroll workers. PAYadvice resources on IR35 can be found at: PAYadvice resources - Off-Payroll workers – IR35 – Deemed Employees Operating payroll: Real Time Information … Continue reading RTI and off-payroll working (IR35) reminder
HMRC have issued the July 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents.the next edition will be published in August 2024. In this edition of the Employer Bulletin there are important updates and information on: PAYE tax calculation repayments PAYE Settlement Agreement calculations 2023 … Continue reading July 2024 Employer bulletin
Earlier Year Updates (EYU) were introduced in April 2014 to be used by employers to correct employee reported data for prior Full Payment Submission (FPS). An FPS would not be accepted late by HM Revenue and Customs (HMRC) following 19th April. Any further changes were then required (and not before), to be made by EYU. … Continue reading End of Tax Year Adjustments – EYU bill no more
With the Labour party winning with a significant majority and forming a new UK government, changes to employment and payroll law will be easier than experienced by prior governments. Tax and NICs Whilst there is an aim for stabilising the UK economy, Labour promised to not increase existing PAYE income tax rate or National Insurance. … Continue reading Labour win – payroll and HR impacts
The HMRC have added a further 3 umbrella organisations that have been found to promoting tax avoidance schemes which HMRC claim do not work. An umbrella company is a business often used by recruitment agencies to pay temporary workers. The common theme of these failed arrangements is a payment close to National Minimum Wage levels … Continue reading More umbrellas named!
Pension contributions during Statutory Maternity Leave One of the common questions in payroll and employment rights social media groups is around employer duties to employees who are on maternity or adoption leave. There are subtle differences between what are labelled as Defined Contributions to a Money Purchase pension scheme (which include all Group Personal Pension … Continue reading Pension rights when on maternity leave
The following is based on a blog by the Low Pay Commision published 3rd May 2024. Apprenticeships are a great way to obtain skills with entering the workplace. However, not all jobs called an Apprenticeship are really and some employers have been found breaching National Minimum Wage. Of genuine apprentices, 1 in 5 (20%) of … Continue reading Four facts about apprentice pay – Low Pay Commission
Accent Umbrella Ltd (AUL) has been named by HMRC as a promoter of tax avoidance schemes. Please be cautious following advice from these entities about joining other umbrella companies. We advise users of this scheme to contact us to get help to exitHMRC Accent Umbrella advertised itself as ‘the perfect compliment to your work life. … Continue reading With Accent Umbrella? Get out!
Millions of workers checking payslips will have seen reductions in National Insurance contributions (NICs) As the economy turns a corner, the government is claiming to reward hard work, with over £900 a year boost for typical worker They state it is another step in ‘long-term ambition to end unfair double tax on work’ There are … Continue reading National Insurance cut is live
The government remains concerned about the scale of non-compliance in the umbrella company market, and the detrimental impact that this has on workers, taxpayers and the labour market. In Summer 2023, the government consulted on options to reduce tax non-compliance in the market and will publish a response to its consultation soon. To support workers … Continue reading Tackling Non-Compliance in the Umbrella Companies Market
1st April 2024 National Minimum Wage uplift The 1st April 2024 sees the introduction of a significant uplift in the National Minimum Wage (NMW) and National Living Wage (NLW) pay rates which will benefit a significant number of employees. So when do the actual rates apply from? It is a misunderstanding of the regulations to … Continue reading Don’t be an April Fool! The Minimum Wage checklist
There has been a number of discussions in social media about week 53 and what should happen with tax codes. Some saying operate Week 1 / Month 1 and others suggesting even the application of 0T/1. What is week tax week 53, 54 and 56? Where an employer pays their employees weekly, 2-Weekly (fortnightly) or … Continue reading Leap year – Tax Week 53, 54 and 56
Source: PAYE RTI from HMRC The Office for National Statistics (ONS) estimates for February 2024 indicate that the number of payrolled employees rose by 1.2% compared with February 2023, a rise of 368,000 employees. This annual increase was largest in the health and social work sector, a rise of 210,000 employees. Payrolled employment increased by … Continue reading Payroll pays 30.4 million employees
The government is legislating to require businesses to change the information they provide to HMRC through Pay As You Earn (PAYE) Real Time Information (RTI) returns completed by employers. The Finance Act 2024 introduced powers to enable the collection of additional data and for HMRC to specify, through Statutory Instruments, the particular information required. The draft regulations published on … Continue reading HMRC to collect worked hours paid data
HMRC are keen to hear views… about the 'Raising standards in the tax advice market: strengthening the regulatory framework and improving registration' consultation announced at Spring Budget 2024. The government is consulting on two new measures to raise standards in the tax advice market: strengthening the regulatory framework by exploring a proposal to require tax practitioners … Continue reading Consultation on raising standards in the tax advice market – this impacts Payroll service
The following information has been issued by HMRC following the government spring budget held on Wednesday 6th March 2024. Dear PAYadvice.UK , Today, the Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, made his Spring Budget speech and set out the government’s plans to bring forward a series of reforms to ensure the … Continue reading HMRC – Spring Budget 2024
National Minimum Wage increases imminent National Minimum Wage applies to all employees and workers who have reached school leaving age at the relevant point to where they live in the United Kingdom and are at least 16. For pay reference periods starting on or after 1st April 2024, there are significant increases in the National … Continue reading Pay boost for 21 & 22 year olds and younger workers
Salary sacrifice schemes have become increasingly popular, often generated by employer efforts to save secondary National Insurance contributions with employers saving 13.8% in employment on costs. They have become a popular vehicle for offering various employment related reward strategies with popular use for: Pensions Cycle to Work Schemes Childcare Vouchers (although restricted with no new … Continue reading Salary Sacrifice and Minimum Pay : benefit or a risk too far
The Student Loans Company and HM Revenue and Customs (HMRC) have confirmed that the Postgraduate Loan (PGL) threshold for 2024-2025 tax year. The annual thresholds and rates for PGL and for each of the Student Loan (SL) plan types are: The Plan Type 1 annual threshold for 2024 to 2025 is £24,990.00The deduction Rate is … Continue reading Postgraduate Loan threshold for April 2024 frozen
"to make the tax system simpler and fairer" The government announced Tuesday 16th January 2024 as part of a package of measures that supports its ambition to simplify and modernise parts of the tax system. They claim to be doing this by using the efficiencies of digital service to drive public sector productivity and exploring … Continue reading Compulsory Payrolling of benefits on the table for April 2026
Want to know how much the reduction in National Insurance could save you & your friends & family? The government are encouraging the sharing of this new online tool to find out. Hey there! The Government has cut National Insurance Contributions from 12% to 10%! This saves the average worker on a £35,400 salary £450 … Continue reading How much NICs will you save?
Many employers and even payroll professionals have welcomed what some claim is a return of the 12.07% holiday pay method of operation which was ruled unlawful by the Supreme Court as not meeting the requirements of the Working Time Regulations (WTR) and the Employment Rights Act (ERA) method of calculating the weekly average earnings for … Continue reading New Holiday Pay 12.07% – not as easy as you think!
At the Autumn Statement 2023 held on 22nd November, a 2% cut in the standard rate of National Insurance was announced with the rate dropping from 12% to 10% effective for payment due from 6th January 2024. If National Insurance is considered a tax, this means a £450 annual tax cut for the average worker … Continue reading 6th Jan 2024 NI cuts – are you ready
As a result of the Autumn Statement reduction in NIC standard rates by 2% from 12% to 10%, employees will benefit from a cut in National Insurance for payments from 6th January 2023. Directors NI is different to those of employees. To avoid various NIC avoidance measures being applied by directors and their remuneration from … Continue reading National Insurance change for directors – are you ready
National Minimum Wage compliance approach As part of the NMW compliance approach outlined in the December 2023 Employer Bulletin, HM Revenue and Customs (HMRC) NMW team are contacting employers, based on geographical location rather than business type. This enables NMW support across a whole range of businesses in a specific area. The HMRC aim is … Continue reading Minimum Pay – Geographical approach to employers
Many employers provide benefits, whether as part of standard reward packages or via flexible reward choice programmes utilising Salary Sacrifice or other Optional Remuneration Arrangements (OpRA). The resulting benefits may have implications for Tax, Class 1 NICs and Class 1A with P11D and P11Db obligations. Many of these arrange,ents have developed over long periods of … Continue reading Want to payroll benefits – plan and register soon for 2024/2025
HM Revenue and Customs Software Developers Support Team have issued the following Monday 4th December 2023 and then updated further with the Scottish and Welsh budgets on Wednesday 20th December 2024. Dear PAYadvice.UK Following Scottish and Welsh Budget announcements we can provide the following Income Tax information for 2024-25. Details for England and Northern Ireland … Continue reading Payroll 2024-25: Allowances, Rates and Thresholds from 6 April 2024
HM Revenue and Customs (HMRC) have published new guides to improve understanding of responsibilities when there are contractors in a labour supply chain. The new Guidelines for Compliance will help organisationsunderstand what HMRC consider good practice (or poor practice)when preparing for and making status determinations foroff-payroll workers. You can find the full guidance at‘Help to … Continue reading
Off-payroll working rules (IR35) responsibilities – new guidance
HM Revenue and Customs (HMRC) have added more tax avoidance schemes that don’t work. Bluestar Financial Solutions Limited The scheme user enters an employment contract with Bluestar Financial Solutions Limited who make composite payments to the scheme users for services provided by the user. The first element is a salary with tax and National Insurance … Continue reading HMRC names more tax avoidance schemes
The UK Government have announced the increase basis for Statutory Payment rates along with other benefits and have released the proposed rates operational from April 2024. On Wednesday the 22nd November 2023 the following was announced: The Secretary of State for Work and Pensions (Mel Stride) I have concluded my statutory annual review of state pension … Continue reading Statutory Payment Rates 2024 increased by 6.7%
As part of the Autumn Statement announcements on Wednesday 22nd November 2023, HM Revenue and Customs (HMRC) has confirmed a new measure which will require businesses to change the information they provide for both income tax self-assessment and real-time returns completed by employers. So these changes will impact the Real Time Information (RTI) Full Payment … Continue reading Paid Worked Hours on FPS!
As part of the HMRC agent update 114, information has been shared on the reclaiming of NI following the Upper Tribunal ruling, When employees use their own car for work, relief from income tax and an equivalent disregard from Class 1 National Insurance contributions can be due based on business miles driven. For National Insurance, … Continue reading Relevant motoring expenditure and National Insurance
For holiday years starting on or after 1st April 2024, Employers will be permitted to calculate annual leave entitlement as 12.07% of the hours worked in a pay period for irregular hours workers and part-year workers in the first year of employment and beyond. This does not apply to workers with regular hours who continue … Continue reading Rolled Up Holiday Pay choice for Employers
The government has responded to the consultation on reforms to retained EU employment law in relation to consultation requirements under TUPE. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) implement the EU Acquired Rights Directive. The purpose of the TUPE Regulations is to protect employees’ employment rights when the business or undertaking for … Continue reading TUPE consultation change
The government has responded to the consultation on reforms to retained EU employment law and the consultation on the Working Time Regulation record keeping requirements. . They will legislate to introduce reforms to the working time regulations. In brief, the government propose to reform or introduce the changes to reduce time-consuming reporting requirements under the … Continue reading Change to Working Time record keeping
The government has responded to the consultation on reforms to retained EU employment law and the consultation on calculating holiday entitlement for irregular hours and part-time (IH&PT) workers. They will legislate to introduce reforms to annual leave and holiday pay calculations in the working time regulations. In brief, the government propose to reform or introduce … Continue reading Holiday consultation – the response
The part 3 session was a small panel discussion on resourcing the payroll team fit success. An interactive q and a session with delegates able to post questions via slido. How is the industry going to recruit and retain new blood. Often payroll is seen as a cost area within a business. Business case for … Continue reading The Payroll Service Summit – part 3 – Resourcing your payroll team for success
The second session at the PayDashboard/Experian event was presented by BDO. The session looked at leveraging payroll data. With increasing legislative requirements being placed by government on data requirements, the information held within payroll has increased. The payroll industry has been driven to be more dynamic with change. So key data is now held in … Continue reading The Payroll Services Summit – Part 2 – Leveraging payroll data to drive value
PAYadvice.UK is pleased to be at the Payroll Services Summit in the centre of the City of London at the Banking Hall. The first session was from Mathew Akrigg if the CIPP. The first area covered was the changes from April 2024 to the payment of paternity leave and pay with the new option to … Continue reading The Payroll Services Summit – opening and part 1
HMRC have issued the October 2023 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition there are important updates and information on: PAYE electric charging of company cars and vans at residential properties electronic payment deadline falls on a weekend … Continue reading October 2023 Employer Bulletin
They we have added (25th September 2023) three more names to the published list of tax avoidance schemes Olympus Contracting Limited, Hamilton Bradbury Ltd and Edge Umbrella Ltd. They urge anyone involved in these (and similar schemes) to get in touch if using these umbrella companies so they can provide help to exit. Olympus Contracting … Continue reading HMRC name three more tax avoidance schemes that don’t work
Private Members’ Bill to help millions save more into their pension and start saving sooner has cleared Parliament and been granted Royal Assent The Bill introduces powers to reduce the age for automatic enrolment and starts pension saving from the first pound earned. Since 2012, Automatic Enrolment has transformed pension saving, with around 11 million … Continue reading Pension AE changes on the way – but when?
In the August 2023, the HMRC are again reminding employers on the confusing pension scheme tax relief methods along with a warning that the employer is responsible for any resulting underpayment of tax. So PAYadvice.UK goes through their detail published and attempts to clarify and explain. The bulletin states: Tax relief on employee contributions to … Continue reading Pension Tax Relief – what are HMRC on about?
HMRC have issued the August 2023 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition there are important updates and information on: PAYE Tax relief on employee contributions to registered pension schemes Ceasing your PAYE scheme Correcting payroll mistakes for … Continue reading August 2023 Employer Bulletin
As part of the governments introduction of reliefs for investment zones from April 2023, a new recycled list of additional National Insurance categories are introduced from 6th April 2024 to report Employers NIC reliefs. The added NIC categories for Investment Zones (IZENR) are: Background The package of tax reliefs available in Investment Zones has been … Continue reading 2024 NI changes: Investment Zone Employer NICs Relief (IZENR)
HMRC have listed another rogue umbrella promoting tax avoidance schemes which do not work. Named on 27th July 2023, Easyway Umbrella Limited of Hemel Hempstead, joins the pool of umbrellas and other organisations that have been judged as promoting failed tax avoidance schemes. Maybe not such an Easyway, this umbrella joins others named such as … Continue reading Another tax avoidance rogue umbrella warning
HMRC are concerned on the number of new starters who they receive on Full Payment Submissions with incorrect or missing tax information. There is evidence that a number of employers are no having their new employees complete appropriate onboarding documents such as the Starter Checklist. As a consequence they have issued a serious of help … Continue reading Getting your new employees tax right
Providing your employer and HMRC with accurate personal information - get the right pay faster When we start a new job we want to be made sure we are paid the right money. Providing your employer and HMRC with the right information helps to make sure that you are paying the correct tax and National … Continue reading Starting a new job? Make sure your details are accurate
Change to data HMRC collects HMRC has indicated that proposed change in law will likely require employers to report more detailed work hours from April 2025. As part of ‘Change to data HMRC collects from customers’ published on 18th July, the proposal outlines three new compulsory data requirements with a failure to provide resulting in … Continue reading Worked Hours reporting change on its way?
The HMRC Software Developer Support Team have shared the following information on a new HMRC campaign to improve the accuracy of new starters being reported to HMRC and the correct tax code use. The campaign commences Wednesday 12th July 2023. …… Dear PAYadvice.UK , Upcoming activity to support employers with new starters We know how … Continue reading Upcoming HMRC activity to support employers with new starters
Photo by Pixabay on Pexels.com Global reward Within the reward industry there are many claims of global solutions! But is there such as thing as a Global solution? Often a business with heavy involvement in a single nation expands overseas believing that a well tried and tested process will easily transport. Although business process may … Continue reading The ‘Isation’ or is it ‘Ization’ challenge of Global Reward solutions?