Payroll Newsletter - Williams Giles Chartered …...to payroll benefits and expenses by 6 April 2018...
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Payroll Newsleer Spring Edion 2018 Increases to Auto Enrolment Pension Contribuons due in April 2018 The Pension Regulator is reminding employers that they need to be ready to deal with the increased auto enrolment pension contribuons which apply from April 2018. On 6 April 2018, all employers will be required to increase the minimum contribuon from the current level of 2% of qualifying earnings to 5%. The minimum contribuon employers and staff pay into their automac enrolment pension goes up to 2% for employers and 3% for employees. Further increases in rates are scheduled for April 2019, so you will need to factor this in to your budget for the forthcoming year if you are currently paying the minimum 1%. If you use our payroll service we will be in touch in the next few weeks to remind you of the required increase and to check how you would like it split. Auto Enrolment Re-Enrolment Most clients have now completed their auto enrolment dues, so what next? The next procedure to follow is ‘re-enrolment’. Your re-enrolment dues must be carried out three years aſter your automac enrolment staging date. Your dues will vary depending on whether you idenfy that you have staff to re-enrol, or whether you have no staff to re-enrol. Either way, you will need to complete a re-declaraon of compliance to tell the Pension Regulator how you have met your dues. Re-enrolment and re-declaraons are your legal duty and if you don’t act you could be fined. If you are due to re-enrol this year and use our payroll service, please discuss the opon of us doing this on your behalf. General Data Protecon Regulaon (GDPR) Payrolling of benefits The General Data Protecon Regulaon (GDPR) is the new legislaon which will be enforced from the 25th May 2018. The regulaon requires businesses to protect the personal data and privacy of cizens for transacons and communicaons that occur within the EU. Brexit will not affect this legislaon. It will no longer be adequate to say you comply with data protecon requirements; you will be required to demonstrate how you are complying. There will be tough new fines for non-compliances and breaches. So in the next few months you need to start planning for GDPR. You will need to consider what personal data you are holding, where and how secure it is. Also you will need to be careful not to send personal informaon by unsecured email. More informaon can be found at www.ico.org.uk. If you need more help with preparing for GDPR please get in touch and ask for a copy of our GDPR checklist. These rules have a parcular impact on our payroll service and we are pung in new systems to ensure all payroll communicaons between us comply with GDPR. ‘Tax and NI changes from April 2018’… Connued... Payrolling of benefits was a new voluntary HMRC online service which has been available to employers since April 2016. Employers who register with HMRC to use the service will not have to report benefits on a P11D form. If you would like to payroll your benefits, you should register with HMRC before the 5th April 2018 and tell your employees what this means for them. Here’s how this works for you: if for example you are going to payroll a medical benefit with a cash equivalent of £600 and you pay your employees monthly, you would add £50 to their pay figure each month. They would be taxed on it as part of the payroll and it would not be necessary to report the benefit on a P11D. At present it is not mandatory to payroll your benefits and you can connue to complete a P11D at the end of the tax year if you prefer. Payrolling Car benefit and car fuel benefit guidance updated From April 2018 car data reporng through the final payment submission (FPS) will be mandatory if you’re an employer who is registered to use the payrolling service (see above) where a car and car fuel are made available to an employee. Employers who aren’t registered to payroll benefits and expenses by 6 April 2018 must connue to complete a form P46 (Car). At present, it is not compulsory to payroll your car benefits.
Transcript of Payroll Newsletter - Williams Giles Chartered …...to payroll benefits and expenses by 6 April 2018...
Payroll Newsletter Spring Edition 2018
Increases to Auto Enrolment Pension Contributions due in April 2018
The Pension Regulator is reminding employers that they need to be ready to deal with the increased auto enrolment pension contributions which apply from April 2018.
On 6 April 2018, all employers will be required to increase the minimum contribution from the current level of 2% of qualifying earnings to 5%. The minimum contribution employers and staff pay into their automatic enrolment pension goes up to 2% for employers and 3% for employees. Further increases in rates are scheduled for April 2019, so you will need to factor this in to your budget for the forthcoming year if you are currently paying the minimum 1%.
If you use our payroll service we will be in touch in the next few weeks to remind you of the required increase and to check how you would like it split.
Auto Enrolment Re-Enrolment
Most clients have now completed their auto enrolment duties, so what next?
The next procedure to follow is ‘re-enrolment’. Your re-enrolment duties must be carried out three years after your automatic enrolment staging date. Your duties will vary depending on whether you identify that you have staff to re-enrol, or whether you have no staff to re-enrol. Either way, you will need to complete a re-declaration of compliance to tell the Pension Regulator how you have met your duties. Re-enrolment and re-declarations are your legal duty and if you don’t act you could be fined.
If you are due to re-enrol this year and use our payroll service, please discuss the option of us doing this on your behalf.
General Data Protection Regulation (GDPR)
Payrolling of benefits
The General Data Protection Regulation (GDPR) is the new legislation which will be enforced from the 25th May 2018.
The regulation requires businesses to protect the personal data and privacy of citizens for transactions and communications that occur within the EU. Brexit will not affect this legislation.
It will no longer be adequate to say you comply with data protection requirements; you will be required to demonstrate how you are complying. There will be tough new fines for non-compliances and breaches.
So in the next few months you need to start planning for GDPR. You will need to consider what personal data you are holding, where and how secure it is. Also you will need to be careful not to send personal information by unsecured email. More information can be found at www.ico.org.uk. If you need more help with preparing for GDPR please get in touch and ask for a copy of our GDPR checklist.
These rules have a particular impact on our payroll service and we are putting in new systems to ensure all payroll communications between us comply with GDPR.
‘Tax and NI changes from April 2018’…
Continued...
Payrolling of benefits was a new voluntary HMRC online service which has been available to employers since April 2016. Employers who register with HMRC to use the service will not have to report benefits on a P11D form.
If you would like to payroll your benefits, you should register with HMRC before the 5th April 2018 and tell your employees what this means for them. Here’s how this works for you: if for example you are going to payroll a medical benefit with a cash equivalent of £600 and you pay your employees monthly, you would add £50 to their pay figure each month. They would be taxed on it as part of the payroll and it would not be necessary to report the benefit on a P11D. At present it is not mandatory to payroll your benefits and you can continue to complete a P11D at the end of the tax year if you prefer.
Payrolling Car benefit and car fuel benefit guidance updated
From April 2018 car data reporting through the final payment submission (FPS) will be mandatory if you’re an employer who is registered to use the payrolling service (see above) where a car and car fuel are made available to an employee. Employers who aren’t registered to payroll benefits and expenses by 6 April 2018 must continue to complete a form P46 (Car). At present, it is not compulsory to payroll your car benefits.
DISCLAIMER: This newsletter is for guidance only and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.
Our Specialist Payroll Team We have a dedicated payroll team who are on hand and happy to help with any queries that you may have.
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Tax and National Insurance changes from April 2018
National Minimum Wage/National Living Wage changes The rates from 1 April 2018 will be:
25+ £ 7.83
21 – 24 £ 7.38
18 – 20 £ 5.90
16 – 17 £ 4.20
Apprentice £ 3.70
Tax Codes The Employee’s personal allowance will be increasing to £11,850. The emergency tax code from 6 April 2018 is 1185L.
Current tax codes suffixes will need to be increased as follows:
L + 35 points
M + 39 points
N + 31 points Tax Bands – UK Rates
20% Basic - £0 to £34,500
40% Higher - £34,501 – to £150,000
45% additional – over £150,000
Cloud Accounting
Bookkeeping & VAT Returns
Tax Compliance
Limited Company Accounts
Audit
Sole Trader & Partnership Accounts
Buy to Let Planning
Tax Planning
Williams Giles - Other Services
Call or visit our website to speak to a member of the team who will be happy to assist you with any queries that you may have.
01795 478044 • www.williamsgiles.co.uk
Student Loan Thresholds
Plan Type 1 - £ 18,330
Plan Type 2 - £ 25,000 Employment Allowance The annual Employment Allowance will remain at £3,000.00 for eligible employers. Statutory Absence Rates Weekly absence rates from 6 April 2018 are:
SSP £92.05 per week
SMP, SPP, SAP and ShPP £145.18 per week
Directors Pay The NI Primary Threshold for this financial year is £8424. So, if you are a director paying yourself the minimum monthly salary £702 per month is the figure or £700 if you prefer to keep it round!
