Yeah it’s a new tax year!!!!!!!!! Well I know we do not quite feel that way. But nevertheless there are changes that could impact your payroll that you need to be aware of.
Changes to the Living wage and the national minimum wage – The national living wage now includes those over 23 years of age. Previously it only covered those over 25 years of age and above. In addition, the National minimum wage has increased for all ages.
Staff aged 23 and above (National Living Wage): £8.91
Staff aged 21-22: £8.36
Development rates for staff aged 18–20: £6.56
Young workers rate for staff aged 16–17: £4.62
Apprentices under 19 or those in first year of their apprenticeship: £4.30
Statutory Sick Pay increases – As of the 6th of April, your staff are now entitled to the increased rate of £96.35 per week SSP. However, your employee will still need to earn an average of at least £120 a week to qualify for the support.
Staff can receive more redundancy pay – Due to changes on the 6th of April, your employees could receive more redundancy pay. When you calculate redundancy pay, the maximum “week’s pay” is now capped at £544 instead of £538. This means the maximum statutory redundancy payment is now £16,320.
Changes to IR35 legislation – To clamp down on tax fraud, the government updated the IR35 law for private companies. If you have a medium or large business, it’s now up to you to decide whether workers are contractors or not. It means you’re liable if the HMRC finds you’re mistakenly claiming for non-contractor staff – and since that could amount to tax evasion, the employer could face a hefty fine.
If you are a business based in the Thames Valley, Berkshire or London and looking for one off or ongoing HR support then you can contact us through our website www.optimahr.co.uk or alternatively you can call us on 0203 086 8387. We offer free 30-minute HR consultation on any HR topic.