The new financial year began 6th April 2018. This means that new rates and limits are applied to you and your business. The changes are summarised below and we will be making changes based on the new rules as appropriate.

Minimum Wage

Take note of the new National Living Wage and the National Minimum Wage, they change every April. If we process your Payroll for you we will increase rates automatically on your behalf.

25 and over 21 to 24 18 to 20 Under 18 Apprentice
£7.83 £7.38 £5.90 £4.20 £3.70

If you need help paying your employees our expert team stand ready to help.

Pensions Contributions

Employers may be required to increase the amount of their contributions into their automatic enrolment pension. Staff members will have to make up whatever shortfall remains of the new total minimum contribution.

Date effective Employer
Contribution
Staff
Contribution
Total
Previously (until 5 April 2018) 1% 1% 2%
6 April 2018 to 5 April 2019 2% 3% 5%
6 April 2019 onwards 3% 5% 8%

Are you prepared to handle your pension responsibilities? Even if you only have a single employee the rules apply to you. Let us know if we can help.

Director Salaries

The salaries for Directors may be set at the primary threshold to be tax efficient. This has increased as outlined below and we will make adjustments if necessary.

Date effective Per Week Per Month Per Year
Previously (until 5 April 2018) £157 £680 £8,164
6 April 2018 to 5 April 2019 £162 £702 £8,424

Termination Payments

Please be advised that from 6th April 2018 all payments in lieu of notice (PILONs) will be both taxable and subject to Class 1 NICs. This change means the tax and NICs are no longer dependent on how the employment contract is drafted or whether payments are structured in some other form.

Need Advice?

If you have any questions or need any advice please let us know. Either reply to this email or get in touch.

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