If you are an employer there are several payroll changes which come into effect from April 2019 of which you should be aware.
Here’s a useful guide from CHW Accountants in Bolton outlining the changes.
All businesses, irrespective of size, must pay all employees at least the minimum wage. Employers who fail to pay the national minimum wage are committing a criminal offence.
There is a useful minimum wage calculator on the gov.uk website.
From the 1st April 2019, the National Minimum wage is increasing so check the rates you are paying your employees now to ensure you do not fall foul.
Minimum auto-enrolment pension contributions for both the employer and the employee increase to 3% and 5% respectively from 6th April 2019.
This means that the total minimum amount being paid into the workplace pension will increase from 5% to 8 % of qualifying earnings.
This is a nationwide change, involving millions of people and their employers and if you’re an employer, you should inform your employees about the changes.
The Personal Tax Allowance is increasing from £11,850 to £12,500 per annum for 2019/20. The basic rate limit increases to £37,500 which means that the higher rate threshold will be £50,000 in 2019/20.
Statutory sick pay is increasing from £92.05 to £94.25 per week, and statutory maternity & paternity pay is going up from £145.18 to £148.68 per week (or 90% of the employee’s average weekly earnings for the first 6 weeks if this figure is less than the statutory rate).
From 7 April 2019, statutory adoption pay is payable at 90% of the employee’s average weekly earnings for the first six weeks, with the remainder of the adoption pay period at the rate of £148.68, or 90% of average weekly earnings if this is less than £148.68.
Currently, only employees have to receive a payslip. However, from 6 April 2019, all workers must receive a payslip. Guidance on whether a person is a worker can be found at www.gov.uk/employment-status/worker
Where an employee’s pay varies by the amount of time worked, the number of hours worked must be also be shown on the payslip.
With national minimum wage and employer workplace pension contributions both going up from April 2019, businesses are facing increased costs. This can have an impact on your cashflow – so make sure you are prepared.
27 November 2019
HMRC recently published new guidance on the structures and buildings allowance (SBA) following changes to the rules. This includes important information about how to claim it.
11 November 2019
Even in this digital age some businesses remain heavily reliant on cash transactions. HMRC views these as high risk and as a result targets cash businesses with VAT enquiries, using special techniques to justify investigating them.
6 November 2019
The first big deadline for MTDfV is history and whilst there was a fairly high failure rate, it was not as bad as originally feared.
29 October 2019
BPR shelters the value of your business from the HMRC. The trouble is though, when you retire from your unincorporated business, the relief disappears immediately. CHW explain how you can preserve it.