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Wages and Payroll Updates from HMRC

HMRC Employers Bulletin  Feb 2015

It's the last week of February and this year is flying by.. it won't be long until the end of the current tax year 5th April 2015.  

HMRC recently released an employers bulletin - there are a couple of changes we wanted to bring to your attention.

wages and payroll

Changes ahead for the tax year 2015/16

If you have employees under the age of 21

From 6 April 2015, Class 1 Employer National Insurance Contributions (NIC) for  employees under the age of 21 will no longer be payable (on earnings up to the Upper Secondary threshold or UST).   You will have to choose one of the new 7 NIC categories when assessing their secondary NICs.  It is the employers responsibility to apply the correct category letter based on the circumstances of each employee.

Student Loans Threshold

From 6 April 2015 the student loan threshold will increase by 2.5% to £17,335.

Annual National Insurance Employment Allowance £2000

Did you reclaim your £2000 Class 1 National Insurance  Employment Allowance?  If you claimed this in the year ending 5 April 2015, you will automatically be entitled to reclaim this again in future years unless you advise HMRC otherwise.  You don't need to do anything to continue reclaiming this!

If you didn't reclaim this or are a new employer - check for eligibility 

Real Time Information (RTI) Filing Penalties

These will come into effect from 6 March for PAYE schemes with less than 49 employees. This has already started for employers with 50 or more employees. Notices will be issued in late May 2015 for any penalties incurred.  This could range from £100 - £400 per month, depending on the number of employees. Please make sure you file your returns on time to avoid unnecessary penalties.


Bright Chilli provide a payroll processing service to help businesses across Dundee, Tayside and Fife who don't want the hassle of dealing with their wages calculations, deadlines and filing for the HMRC Real Time Information System (RTI) across 

Please contact Gillian Lindsay on 0844 736 5611 or email gillian@brightchilli.com for more details.

 

HMRC updates... they give with one hand and take away with the other!

GOOD NEWS!  

Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000. This is called the ‘Employment Allowance’.

This is a great boost for small businesses.

Up to 1.25 million businesses and charities will benefit up to £2000 per year via the HMRC Employment Allowance from 6th April 2014.  

It’s easy to apply for the Employment Allowance:

  1.  Make sure your business is eligible check here https://www.gov.uk/employment-allowance
  2. Tick a box in your payroll software (if your software is RTI compliant and has the ability to submit an Employment Payment)
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The benefit is deducted from your Class 1A National Insurance payments.  For further information and an eligibility checker about the Employment Allowance click the following link: https://www.gov.uk/employment-allowance


NOT SO GOOD NEWS! 

Many businesses were able to recover a % of Statutory Sick Pay (SSP) paid to their employees when they were absent from work.  From 6th April 2014 this deduction is to be removed as the Percentage Threshold Scheme (PTS) Ends.

You will still be required to keep the appropriate wages records for SSP for PAYE purposes but the current payroll record keeping requirements for the Percentage Threshold Scheme (PTS) will be abolished at the end of the 2013/14 tax year. 

An independent review has shown that the Percentage Threshold Scheme (PTS) has not encouraged employers to actively manage sickness and absence in the workplace and has resulted in the Government reinvesting to fund the new Health & Work Service. - 

More info - 
https://www.gov.uk/government/policies/helping-people-to-find-and-stay-in-work/supporting-pages/co-ordinating-the-health-work-and-wellbeing-initiative

How will this new ruling affect your business?


Bright Chilli provide payroll services to where businesses don't have time to process the company wages to clients throughout, Dundee, Angus and Tayside.

We also provide payroll software and payroll training. Our recommended software is Moneysoft Payroll, Moneysoft is easy to use, low cost and Real Time Compliant (RTI) with HMRC.

Please contact Gillian Lindsay on 0844 736 5611 or email gillian@brightchilli.com for more details.