Guide to Payroll Changes from April 2019

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.

National minimum wage

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.

Auto-enrolment pension contributions

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.

Personal allowance and basic rate limit

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, maternity and paternity pay and adoption pay

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.

Payslips must be provided to all workers

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.

Summary

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.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

DID YOU FIND THIS USEFUL?

Share it with your network:  

Want more great content?
Sign up to our newsletter

    Follow us

    Tweets by @CHW-accounting

    CHW-Accounting
    @chw-accounting


    Twitter: chw_accounting

    WHAT'S THE NEWS?

    Grab a biscuit and a brew and read our latest news.

    29 May 2024

    VAT bank details fraud

    by

    Reports have been circulating in recent weeks that taxpayers’ bank account details are being altered on the HMRC portal without their consent or knowledge. This in…


    Read more >

    1 May 2024

    Where VAT is concerned, size does matter – for...

    by

    HMRC has recently lost a long running case over the VAT status of giant marshmallows with the Upper Tribunal ruling that they are not confectionery! Innovative…


    Read more >

    1 May 2024

    HMRC phone lines remain open but waits get even...

    by

    Last month, HMRC announced that its self-assessment phoneline will close between April and September every year following a trial of the move in 2023. Less than…


    Read more >

    1 May 2024

    Tax relief on travel expenses if you are working...

    by

    HMRC has had clarified it’s rules on when tax relief is available on travel expenses for employees who work from home. With the growth of flexible…


    Read more >

    1 May 2024

    Check your State Pension forecast with new online tool

    by

    Anyone with gaps in their national insurance payments dating back to 2006 can now check online to see if they need to make additional contributions. The…


    Read more >

    YOUR CHALLENGES

    No matter what your challenge is, we’ve probably dealt with it before.



    Need an Accountant?

    Get in touch >


    Need an Accountant?

    Get in touch >


    Tax issues?

    Find out more >


    Tax issues?

    Find out more >


    Trying to grow your business?

    We can help >


    Trying to grow your business?

    We can help >


    Managing cashflow?

    We can help >


    Managing cashflow?

    We can help >


    Starting a business?

    We can help >


    Starting a business?

    We can help >


    Looking for funding?

    Need help with funding? >


    Looking for funding?

    Need help with funding? >


    Buying or selling a business?

    We can help >


    Buying or selling a business?

    We can help >


    Adopt the cloud?

    We can help >


    Adopt the cloud?

    We can help >


    What else can we do for you?

    We can help >


    What else can we do for you?

    We can help >
    CONTACT US

    Get in touch, no hard sell, just a brew, a biscuit and a chat.