Payroll changes from April 2019

There are a number of payroll changes coming into effect from April 2019 that employers need to be aware of.
  • The National Minimum Wage increases
  • Auto-enrolment pension contributions for both the employer and the employee increase  to 3% and 5% respectively
  • The Personal Tax Allowance increases to £12,500 per annum
  • The Basic Tax Threshold increases to £37,500 (an increase of £3k). This means the higher rate threshold will be £50,000 in 2019/20
  • For employees living in Wales, tax codes will be prefixed with a C
  • Statutory Sick Pay (SSP) increases to £94.25 per week
  • Statutory Maternity & Paternity Pay increases to £148.68 per week
  • Holiday pay should be based on 12 week average pay
  • Payslips must be provided to all workers, and,
  • Where an employee’s pay varies by the amount of time worked, the number of hours worked must be shown on the payslip.  Find out more here
  • Employees must notify HMRC directly of any change of address, rather than depending on payroll to do it for them.  Employees should be encouraged to open a personal tax account with HMRC.  
Remember, all personal employee data must be stored and processed in line with the General Data Protection Regulation (GDPR).  If you are sharing data with a third-party (such as your payroll provider), you should make sure the data is encrypted or shared via a secure portal.

If you need advice or support with any aspect of payroll or PAYE, please contact your local Moore Stephens adviser. 

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