Articles and information in relation to UK Payroll for business, employers and employees.
HMRC have issued the RD1 Specification for employers substitute forms P60 for the new 2025/2026 tax year. The RD1 guide gives information on how to design substitute forms P60, ‘End of Year Certificate’ which employers may use at the end of the tax year. It also includes information on how to adapt the substitute form … Continue reading 2025/2026 P60 design
The states of jersey has confirmed changes applicable from 1st January 2025. Jersey Social Security (Class 1 contributions) The uplifted monthly earnings limits have been confirmed along with contribution rates remaining unchanged: (c) PAYadvice Ltd 2024 2024 Minimum Earnings Thresholds for Class 1 contributions The following threshold values change from 1st January 2024 (c) PAYadvice … Continue reading Jersey 2025
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%
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
The Isle of Man has reviewed and announced interim increases to the Minimum Wage, and a future change to align with the Living Wage. At the May 2024 sitting of Tynwald, the following interim increased Minimum Wage Rates were approved. These rates apply from 1st July 2024. From 1st July 2024 rates The Tynwald has … Continue reading Isle of Man – Minimum Wage increase 1st July 2024
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
29 million workers receive largest National Insurance cut A £900 a year boost for typical worker Part of the governments long-term ambition to end ‘unfair double tax’ on work According to the government, 29 million Brits will see their hard work rewarded from 6th April 2024 as National Insurance cuts come into full force. Since … Continue reading National Insurance cut for 29 million arrives
28,000 small businesses freed from paying VAT, encouraging them to invest and grow as the threshold is raised from £85,000 to £90,000 Over one million properties protected from higher bills by freezing the small business rates multiplier for a fourth consecutive year Government backs British businesses as it sticks to the plan to cut taxes, … Continue reading VAT threshold raised and rates frozen in boost for small business
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
HMRC have issued the March 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. On 6 March 2024, the Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, made his Spring Budget. One of the headline tax measures relevant for employers was: Changes to … Continue reading March 2024 Employer Bulletin
With the rise in National MinimumWage and National Living Wage A frequent question on various Facebook and other social media groups is around training. It appears that some employers oblige their employees and workers to undertake training in the workplace or at home in the employees own unpaid time. the employer considering that training is … Continue reading NMW – Work related training is work time
So here we are again, the end of another UK tax year! At PAYadvice.UK we are seeing a high number of directors National Insurance Contributions questions and challenges! So what is going on in March 2024? Directors annual period Directors are classed as employees and pay National Insurance on annual income from salary and bonuses … Continue reading What’s going on with Directors National Insurance
Spring Budget 2024 speech as delivered by Chancellor Jeremy Hunt. Madam Deputy Speaker… As we mourn the tragic loss of life in Israel and Gaza, the Prime Minister reminded us last week of the need to fight extremism and heal divisions. So I start today by remembering the Muslims who died in two world wars … Continue reading Spring Budget 2024 speech
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
The HMRC Software Developer Support Team have issued the following to developers in relation to the 2 percentage point cut to the main primary National Insurance contribution rates: On 6 March 2024, the Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, made his Spring Budget announcements. The Government has announced changes to National … Continue reading April 2024 changes to NICs
The budget 2024, Wednesday 6th March 2024, announced a number of changes , some of which impact payroll software, service and professionals in the payment to employees. Speculation in the days leading up to the budget hinted at cuts to Income Tax Rates and alternated cuts to National Insurance contribution rates of up to 2p. … Continue reading Budget 2024 – Payroll impacts etc.
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
524 businesses have been named for failing to pay the minimum wage Employers ordered to repay workers nearly £16 million, plus an additional financial penalty, after breaches left over 172,000 workers out of pocket. Comes as the National Living Wage is set to increase by 9.8% to £11.44 an hour on 1st April, as announced … Continue reading Shamed for not paying minimum wage
HMRC originally issued updated guidance on the Benefit in Kind treatment of double cab pick-ups on Tuesday 12th February 2024. EIM23150 Car benefit: double cab pickups and the new EIM23151 Car benefit: double cab pickups 1 July 2024 onwards to clarify the new rules which will take effect from 1st July 2024. What is a double cab pickup? A … Continue reading Double cab pickup benefit tax status change cancelled
HMRC have issued the February 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. The next Employer Bulletin is in March 2024 In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE taxed award schemes 2024 National Insurance contributions … Continue reading February 2024 Employer Bulletin
Automatic enrolment (AE) into workplace pensions has been a great success to date. Since 2012 over 11 million people having been enrolled into a pension and over 2.3 million employers having met their automatic enrolment duties. Since the introduction of AE, total annual pension saving by eligible employees has increased by nearly £29 billion in … Continue reading Pension AE: Earnings Trigger and Qualifying Earnings Band Frozen for 2024/25
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
There are changes to the way Paternity Leave and Pay can be claimed and taken. This will make it more flexible for fathers and partners to access. The changes will come into effect from 8th March 2024. These changes will: allow fathers and partners to take their leave in non-consecutive blocks — currently, only one … Continue reading Paternity pay change – April 2024
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?
How holiday pay and entitlement has changed from 1 January 2024. The Department for Business and Trade has published new guidance on Monday 1st January 2024 on the changes to holiday pay. This guidance sets out forthcoming changes to the Working Time Regulations which will affect: irregular hours workers and part-year workers accrual of COVID-19 … Continue reading DBT publish new guidance on Simplifying holiday entitlement and holiday pay calculations
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
Budget date announced HM Treasury has confirmed that the Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside his Spring Budget on 6 March 2024. What is the Budget? The Budget, or Financial Statement, is a statement made to the House … Continue reading Spring Budget 2024 set for 6th March
Photo by Lisa Fotios on Pexels.com Welsh Rates of Income Tax (WRIT) The process for Wales involves the UK Government reducing each of the three income tax rates for Welsh taxpayers by 10p. The Welsh Government then decides whether to set the Welsh rates at 10p, thereby retaining parity between Welsh and English taxpayers or … Continue reading Welsh Income Tax April 2024
Photo by Pixabay on Pexels.com The Scottish Budget 2024-2025 was presented to the Scottish Parliament on Tuesday 19th December 2023. The Finance Minister Shona Robison confirmed that a new 45% tax band will be created for higher earners, she said the new "advanced" rate would apply to earnings of between £75,000 and £125,140. She also … Continue reading Scottish Budget tax proposals for April 2024
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
HMRC have issued the RD1 Specification for employers substitute forms P60 for the new 2024/2025 tax year. The RD1 guide gives information on how to design substitute forms P60, ‘End of Year Certificate’ which employers may use at the end of the tax year. It also includes information on how to adapt the substitute form … Continue reading 2024/2025 P60 design
HMRC have issued the December 2023 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. The next Employer Bulletin is in February 2024 The headline tax measure relevant for employers was: National Insurance Contributions (NICs) rates In this month’s edition there are important updates … Continue reading December 2023 Employer Bulletin
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
HMRC Software Developers Support Team (SDST) has confirmed (Monday 4th December 2024), the student Plan Type 4 (Scotland) threshold applicable from 6th April 2024. The threshold is to rise to: £31,395 The only remaining value to be confirmed is the Postgraduate Threshold, although some may predict that the threshold will again remain frozen. The thresholds … Continue reading Student Loan Plan 4 threshold for April 2024 confirmed
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%
A factsheet setting out details of cuts to main rates of National Insurance for employees and the self-employed. HM Treasury have issued a factsheet outlining more information on the National Insurances changes announced at the Autumn Statement on Wednesday 22nd November 2023. They have issued the following which is also available by clicking on the … Continue reading Autumn Statement 2023: National Insurance Factsheet
Following the Autumn Statement 2023 held on Wednesday 22nd November, As promised by Chancellor, the government have laid a bill to cut National Insurance from 6th January 2024. It is claimed that the average employee will save up to £450 next year. ‘Just one part of the biggest package of tax cuts to be implemented … Continue reading NI reduction bill presented
With the governments Autumn Statement reduction of 2% in the standard rate of National Insurance Contributions from the current 12% to a new 10% from 6th January 2024, it’s all good news for those who pay National Insurance. Salary Sacrifice arrangements have remained popular with employees often able to benefit by the reduction of the … Continue reading Reduction in NI = reduction in employee salary sacrifice benefit
Following the Autumn Statement announcement n the 2 percentage reduction in employee National Insurance contributions, the HMRC Software Developers Support Team (SDSTeam) have issued the following. Dear Developer On 22 November, the Government announced changes to National Insurance contributions (NICs) rates for the current tax year. Please note that these changes are subject to Parliamentary … Continue reading Payroll 2023-24: January 2024 changes to NICs
As part of the Autumn Statement, the Chancellor of the Exchequer Jeremy Hunt has announced a shock mid year change to National Insurance contribution for employees. The 12% rate is returned to 10%. Payroll software and employers will need to ready themselves to implement the changes in readiness for the new calendar year to be … Continue reading National Insurance rates cut by 2 percent
The states of jersey issued information on changes applicable from 1st January 2024. 2024 Minimum Wage The minimum wage from 1st January 2024 is increased to £11.64 an hour. Harmonisation of trainee rates The year 1 and year 2 trainee rates are harmonised with the minimum wage rate with effect from 1st January 2024 and … Continue reading Jersey 2024
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
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
10% increase in the real Living Wage as cost of living continues to hit low paid workers the hardest Over 460,000 Living Wage workers are set for a pay boost as 14,000 Living Wage employers are signed up to pay the new rates The new real Living Wage rates are now worth over £3,000 more per … Continue reading Real Living Wage increases to £12 in UK and £13.15 in London
The National Living Wage will rise to two-thirds of average earnings, the Chancellor announced Monday 2nd October 2023 National Living Wage will rise to two-thirds of average earnings Chancellor commits to Low Pay Commission recommendations, with latest forecasts showing a pay boost next year worth over £1,000 for 2 million low-paid workers successive rises mean … Continue reading Major increase to National Living Wage on its way
What NMW protection is there for domestic workers Workers who live-in within the family home of their employer and who are treated as a family member, not charged for accommodation or food, under National Minimum Wage Regulations 57(1). It defines that the term “work” does not include any work done in relation to an employer’s … Continue reading National Minimum Wage to be extended to live-in domestic workers
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?
Dear PAYadvice.UK, I’m pleased to advise that the 2024-25 RTI technical pack for internet submissions is now available on GOV.UK at Real Time Information support for software developers. Our current plans are to implement these artefacts in the test services as follows: • LTS – Wednesday 4th October 2023 • TPVS/ETS - Monday 16th October … Continue reading PAYE RTI 2024-25: technical pack published
During the National Payroll Week, the Chancellor of the Exchequer, Jeremy Hunt, announced on 5th September 2023 that he will present the Autumn Statement 2023 to Parliament on 22nd November. The treasury confirm that the Office for Budget Responsibility (OBR) have been commissioned to prepare an economic and fiscal forecast to be presented to Parliament … Continue reading Autumn Statement set for 22nd November 2023
The Department for Education has confirmed the Student Loan thresholds for Plan Type 1 and 2 to be operated from 6th April 2024. From 6 April 2024, the repayment threshold for pre-2012 (Plan 1) loans will rise to £24,990. The income threshold for post-2012 (Plan 2) from April 2024 will remain frozen at £27,295 as … Continue reading Student Loan Plan 1 and 2 thresholds confirmed for April 2024
Originally started in readiness for 2021, PAYadvice.UK are constructing its popular PAYadvice Series Legislation Update 2024 for payroll. We believe that PAYadvice was the first organisation in the UK to bring together the various resources needed by payroll professional and payroll software developers in preparation for the April 2021 through April 2023 changes, even to … Continue reading Legislation updates 2024 for payroll
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)
In 2019, the Low Pay Commission (LPC) recommended that workers should become entitled to the National Living Wage (NLW, the highest rate of the minimum wage), at the age of 21 instead of 25. In April 2021, the first steps to achieving this, the age of entitlement was lowered to 23. This meant that 23 … Continue reading Start-age for National Living Wage expected to drop to 21 from April 2024