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New Student Loan Repayments rates this month

A reminder that one of the many changes this month is a change to the payroll repayment rates for those with Student Loans.

 
 
For borrowers repaying on Plan 1 – if earnings in the week or month exceed the highest amount of earnings shown in the tables you’ll need to deduct the ‘pay period threshold’ from total earnings in the week or month. Do this by:
       deducting £352.50 from weekly earnings for weekly paid employees, or deducting £1,527.50 from monthly earnings for monthly paid employees
       multiply the result (the excess) by 9% (0.09), round down this figure to the nearest whole pound.

 
For borrowers repaying on Plan 2 – if earnings in the week or month exceed the highest amount of earnings shown in the tables you’ll need to deduct the ‘pay period threshold’ from total earnings in the week or month. Do this by:
       deducting £480.76 from weekly earnings for weekly paid employees, or deducting £2,083.33 from monthly earnings for monthly paid employees
       multiply the result (the excess) by 9% (0.09), round down this figure to the nearest whole pound.

 
 

The new rates and further information is on the HMRC website

Changes to Pay In Lieu of Notice

Extract from the HMRC Employer Bulletin, April 2018 [link]

Payments in lieu of notice

Changes to the taxation of non-contractual payments in lieu of notice (PILONs) came into effect from 6 April 2018. All payments in lieu of notice on, or after 6 April 2018 are chargeable to income tax and Class 1 National Insurance Contributions (NICs), whether or not they are contractual payments. Detailed guidance can be found in the Employment Income Manual.

Accordingly, any Pay In Lieu of Notice payments processed by Payroll Check will always be subject to both income tax and National Insurance.

 

 

Key Payroll Dates

Some key payroll dates to note …

31st May 2018Statutory deadline for issuing P60s

6th July 2018Statutory deadline for P11Ds

19th / 22nd July 2018Payment of Class 1A NIC due

Happy New Tax Year!

Happy New Year!

A few links to help you with the start of the 2018/2019 tax year …

 
New Income Tax, National Insurance, SSP, SMP etc rates
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019

 
P9X (tax code changes 6 April 2018)
https://www.gov.uk/government/publications/p9x-tax-codes

 
National Minimum Wage and National Living Wage
http://www.acas.org.uk/nmw

 
Changes to Pension Contribution rates
http://www.thepensionsregulator.gov.uk/minimum-contribution-increases-planned-by-law-phasing.aspx

 

Fake HMRC emails – be warned!

HM Revenue and Customs has issued a timely reminder about the potential for emails pretending to have been issued by HMRC.

HMRC will never notify a tax rebate by email or text. HMRC do not ask for personal or payment information by email or text.

If you have the slightest doubt that a HMRC email or text is fake, the advice is:
– do not open attachments, they could contain a virus
– do not click on links, they could take you to a fake HMRC site
– do not disclose personal/confidential information
– forward suspicious HMRC text messages to 60599 (charged at your network rate)
– forward suspicious emails to the HMRC phishing team at: phishing@hmrc.gsi.gov.uk

Further information at https://taxagents.blog.gov.uk/2018/04/05/spoof-hmrc-communications-tax-agent-blog and https://www.gov.uk/topic/dealing-with-hmrc/phishing-scams

Gender Pay Gap information

Are you interested in the ‘Gender Pay Gap’ statistics being discussed in the media.

You can search for information by company via: https://gender-pay-gap.service.gov.uk

2018 / 2019 tax and NIC etc rates

Have you seen the 2018-2019 rates for income tax and National Insurance yet? 
You can read them all at: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019
 
The April 2018 P9X is not being sent direct to employers by HMRC, instead you can download it here.

 

 

New Minimum Wage Rates

The minimum pay rates increase in April 2018.  The new rates are:

April 2018 NMW NLW rates

 

Further information at www.acas.org.uk/nmw and www.gov.uk/national-minimum-wage

 

 

 

 

 

Check Your Tax Code

Do any of your employees have a tax code that starts with a ‘S’?   If so, this means that HM Revenue and Customs think the individual lives in Scotland. As the Scottish Parliament is able to set income tax rates and bands different from the rest of the UK, those with a ‘S’ tax code prefix may be taxed incorrectly if they do not reside in Scotland.

 

If employees have any query regarding their tax code they can call HM Revenue and Customs on 0300 200 3300 – lines open Monday to Friday 8am to 8pm, Saturday 8am to 4pm and Sunday 9am to 5pm.

Pension Contributions

From 6 April 2018 (the start of the 2018/2019 tax year) employers are required to increase the amount of their minimum employer contributions into their staff’s Automatic Enrolment pension to at least of 2% of qualifying earnings. Members of staff will have to pay the shortfall needed to make the total minimum contribution up to 5%, including the employer contribution.

 

Please ensure that you provide your payroll bureau with information on increases in employee and employer pension contributions for your employees so that the new rates can be operated in the April payroll run.

 

The Pensions Regulator has provided advice for employers on the April 2018 increase in contributions at www.thepensionsregulator.gov.uk/en/employers/phasing-increase-of-automatic-enrolment-contribution which includes a draft letter to employees to advise them of the increase.   Further information available from The Pensions Regulator on 0345 600 1011 or
www.thepensionsregulator.gov.uk/minimum-contribution-increases-planned-by-law-phasing.aspx