The 2018 Autumn Budget announced changes to the ‘off-payroll’ working (or ‘IR35’) rules, which are set to apply from April 2020. This may affect you if you work on a contract through a personal service company (PSC) in the private sector, or hire or place such workers. Similar rules already apply in the public sector. … Continue reading New Rules for Personal Service Companies
Further to the publication of the rates and thresholds from HMRC, from 6 April 2019 we are advising our clients that directors will be able increase their current salary with no tax or national insurance deductions. Directors of Limited Companies will be able to increase their salaries from £702.00 to £719.33 per month, or weekly … Continue reading Increase to Directors Salary
Experts have recently warned that thousands of over-55s are at risk of incurring charges and reducing the available tax relief if they continue to delve into their pension pots whilst benefiting from workplace pension contributions. This article takes a look at some key pensions tax reliefs and allowances. Relief on pension contributions All pension schemes, … Continue reading Are You Making the Most of Pensions Tax Reliefs?
HMRC have published the statutory rates for Maternity pay, Paternity pay, Shared Parental pay, Adoption pay and Sick pay for use from April 2019. Statutory Maternity Pay (SMP) will rise from £145.18, or 90% of the employee’s average weekly earnings, if this is less than the statutory rate, to £148.68. This change will occur on … Continue reading New Statutory Payment Rates From April 2019
Following on from the Chancellors Budget, further changes will affect how you pay your employees from April 2019. It has been confirmed that the National Living Wage for workers aged 25 and over will be increasing from £7.83 to £8.21 per hour. The complete list of changes from April are: Current Rate From April 2019 … Continue reading National Minimum Wage and Auto Enrolment Rates from April 2019
A recent appeal case brought before the Supreme Court has highlighted the need for more clarity relating to employment status. The case was first heard by the Employment Tribunal when engineer, Gary Smith, claimed that he had been unfairly dismissed by Pimlico Plumbers following a heart attack, after having worked for the company for 6 … Continue reading Think Your Workers Are Self Employed? Think Again
HMRC recently reviewed the ‘effectiveness’ of its risk-based approach to late filing PAYE penalties, and opted to continue to use this approach for the current tax year. Here we provide an overview of the PAYE system. How the PAYE system works Pay As You Earn (PAYE) is the system through which employers deduct an amount … Continue reading Getting to Grips with PAYE
It’s that time of year again for the National Minimum Wage to rise. Following its review, the Government has accepted the recommendations of the Low Pay Commission for the National Minimum Wage. From April 2018 the new rates will be as follows: £7.38 per hour for 21-24 year olds £5.90 per hour for 18-20 year … Continue reading National Minimum Wage Changes
Almost all employees are entitled to 5.6 weeks paid holiday per year, but what rate should this based on: their basic pay or should it include any overtime or commission? The Working Time Regulations Act 1998 declares that employers should use basic pay to calculate holiday entitlement, but this contradicts the European Working Time Directive … Continue reading Are Your Employees Receiving the Correct Holiday Pay?
Beginning the 6 April 2018, employers may be required to increase the amount of contributions into their employees’ Auto Enrolment schemes. The contribution levels will also rise again in a further year’s time, with employers paying a minimum of 3% towards the pension and the total minimum contribution reaching 8%, the employee making up the … Continue reading Auto Enrolment Rolls on for Another Year