Hello from Fiona and Sarah, your payroll team here at Team 4 Solutions. 

We know how stressful payroll can be and it’s our job to keep it all running smoothly and makes sure you have as little as possible to worry about.

We keep on top of any changes coming up so we can let you know anything relevant for your business, without you trying to keep track of all things financial!

Things to be aware of at the moment:

  • annual increase to the National Minimum and National Living Wages
  • increases to employer pension contributions and compliance spot checks
  • PAYE tax and Class 1 National Insurance contribution changes
  • GDPR changes what this means when you or we send and store payroll data
You can find more details on each below and if you’ve any questions please get in touch.

April 2018 updates:

National Living Wage

Increases to the National Minimum Wage and National Living Wage (NLW) will come into effect from April 2018 and are as follows:

  • NLW for workers aged 25 and over will increase from £7.50 to £7.83
  • The rate for 21-24 year olds increase from £7.05 to £7.38
  • The rate for 18-20 year olds increase from £5.60 to £5.90
  • The rate for 16-17 year olds increase from £4.05 to £4.20
  • The apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) increase from £3.50 to £3.70.

The accommodation offset also increases from £6.40 to £7.00 from 1st April 2018.

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019#national-minimum-wage

Pension Contributions

We’d like to remind employers that the minimum contributions increase from 6th April 2018 and then again from 6th April 2019. All employers must take action to make sure at least the minimum amounts are being paid into their automatic enrolment pension schemes.

Date Effective Employer Minimum Contribution Staff Contribution Total Minimum Contribution
Currently until 5th April 2018 1% 1% 2%
From 6th April 2018 2% 3% 5%
From 6th April 2019 3% 5% 8%


http://www.thepensionsregulator.gov.uk/doc-library/increases-in-minimum-contributions-automatic-enrolment.aspx

PAYE & NI

From 6th April the rates and thresholds for PAYE tax and Class 1 National Insurance Contributions will be changing.

Employee Personal Allowance will increase to £11,850 per year so a standard tax code will know be 1185L.

For further details please check the HMRC website via the link below.

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019#paye-tax-and-class-1-national-insurance-contributions

Monthly PAYE Payments

HMRC have issued a guide to paying your PAYE electronically. You may have received this direct from HMRC or attached to our posted newsletter.

It explains what reference formatting to use and dates for electronic payments. Please keep handy for future reference.

** To stop Late Payment Notices being received by HMRC and a possible fine, please pay on time! **

Automatic Enrolment

Automatic Enrolment is not an option, it’s the law.  If employers are not complying with the law TPR will use their powers to make them comply.

Recently TPR have been doing spot checks in Sussex, Surrey, Hampshire and Kent and no doubt will continue to do so in these and other areas.

The checks will help TPR understand whether employers are facing any unnecessary challenges that they can help with, such as improving employer systems. They will also highlight employers who have not taken the required steps to become or remain compliant, paving the way for enforcement action.

The vast majority of employers are continuing to provide their staff with the workplace pensions they are entitled to and are keeping up with contributions after that point.  These visits help TPR identify why some are not, so they can take action where necessary.

Remember, we have assisted the majority of our clients to comply with the regulations and can continue to help existing and new clients comply with the regulations in the future, including re-enrolment duties.

General Data Protection Regulation – GDPR

GDPR is due to come into force on 25th May 2018, a key component of which is holding businesses accountable for securing personal data. This means that providers who run payroll and store large amounts of personal data must ensure it is kept secure and GDPR compliant.

Rest assured that Team 4 Solutions is working to ensure that our processes are safe and fully compliant.  We would urge clients to ensure that their processes are too.

We need to think about how you send information to us and what that information contains.

We would advise our clients to only send the information that is necessary.  The Team 4 New Employee Form contains all the information we require to run your payroll and we would urge all our clients to use this for new starters.

If you feel you need any help with any of the above, or any payroll tasks, please contact us to see if we can assist. We’d be happy to chat it through with you over a coffee.