Latest Payroll

For the 24-25 tax year there will be 5 different student loan deduction rates. However, Plan 5 does not become due for payment until the 2026-27 tax year so can be discounted for now. The new rates show no change for Plan 2 and 3, but the thresholds for Plan 1 and 4 have been…

Yet again we have a tinkering of the rules regarding holiday pay in the seemingly forlorn hope for simplification. Basic holiday entitlement hasn’t changed. Employees are still entitled to 5.6 weeks holiday per annum and the changes apply to those workers who have no set hours or work irregular hours.   One little known aspect…

The National Minimum Wage increase from April 2024 will be welcomed by many employees. The rise will take place from 1 April for the next pay reference period post increase.   Perhaps the biggest change of all is the abolition of the 21–22-year-old band. Employees reaching the age of 21 will now enjoy a pay…

In 2016 the Government launched a trial scheme to payroll benefits. The purpose of this was to make declaring and paying tax on benefits easier in comparison to submitting annual P11D forms and also to provide HMRC with real time information.   Due to the regulations HMRC put in place at the time, it’s fairly…

One of the areas we find that generates more enquiries than any other is the murky world of Maternity Pay and all associated areas such as paternity, adoption and shared parental leave. Paternity Leave is the easiest area to get to grips with: Statutory Paternity Pay (SPP) lasts for 2 weeks. The employee can take…

Here’s our quick overview of Freeports, what they are and what benefits they offer.   On 20 November 2023 the Government announced that the window to claim Freeport tax relief in England will be extended to September 2031. This is however conditional on the Freeport developing a satisfactory plan for Levelling Up, Housing and Communities.…

In 2016 the government launched a trial scheme to payroll benefits. The purpose of this was to make the declaring and paying tax on benefits easier in comparison to submitting annual P11D forms and also to provide HMRC with real time information.   Due to the regulations HMRC put in place at the time, it’s…

Let’s discuss the cost to employers of the minimum wage rise April 2024.   During the last Tory Party conference, Prime Minister Rishi Sunak pledged that April 2024 would see the minimum wage increase to at least £11.00 per hour. The actual figure, announced on November 21st, is higher than expected, rising to £11.44 per…

With the reduction in employees National Insurance (NI) through the Autumn Statement, to 10% and the drop in the dividend allowance to only £500 from April 2024. Alongside the previously announced rise in Corporation Tax rates. The question directors will ask again is, am I better paying myself a higher salary rather than dividends?  …

News broke on 8th November regarding the long-awaited results of HMRC’s consultation on holiday pay and entitlement for employed workers.   In 2011, in order to come in line with the Working Time Directive, HMRC deemed that the 12.07% accrual method for calculating holiday pay was unlawful. This led to several employee tribunal cases with…