Payroll News
With the new tax year approaching fast, our Payroll news for 2024 below is a summary of information that will affect your payroll in 2024/25. Please take a moment to check the details as action may be needed immediately. More detailed information can be found on the HMRC website
If you have any queries with regard to payroll or workplace pensions please do not hesitate to contact us.
The personal allowance will remain at £12,570 per annum. All employees should, after 6th April 2024, have any Week1/Month1 marker removed.
It would be prudent to review your employee list and raise a P45 for anyone who you are not going to carry forward into the new tax year. This should be done before your payroll is completed for the 2024/25 tax year.
National Minimum Wage (NMW)/Living Wage (LW)
The new rates will be as follows:-
- Living Wage 21 and over……………………………£11.44 per hour
- Aged 18 to 20 inclusive………………………….… £8.60 per hour
- Aged 16 to 17 ……………………………………………£6.40 per hour
- Apprentices aged under 19………………………£6.40 per hour
- Approved 19 & over but in their first year of apprenticeship………………………………£6.40 per hour
We would recommend that you review all of your employee’s wages and salaries to ensure that you are meeting the NMW
Employers Allowance
This will remain at £5000 for 2024/25. It continues to be unavailable to schemes where the only employee is a sole director.
If you run your own payroll please remember to tick the box in your software to claim this when doing your first payrun in the new tax year. You should ensure that an EPS is submitted to HMRC to claim this (although many softwares send the EPS automatically).
NI rates for 2023/24
Employees’ NI will be 8% on earnings above the primary threshold up to and including the upper earnings limit. (£1048 to £4189 per month) from 6 April. The rate of Employers NI will be 13.8% on all earnings above the secondary threshold (£758 per month)
Employers’ NIC for Employees under 21
Employers will not be required to pay Class 1 Secondary Threshold NI contributions on earnings up to the Upper Secondary Threshold (UST) for employees who are under the age of 21. Class 1 secondary NICs will however continue to be payable on all earnings above the UST. The value of both the UST and the Upper Earnings limit will be £967 per week.
There is also an Apprentice Upper Secondary threshold for under 25’s. The value of this is the same as UST at £967 per week.
The Primary Threshold for National Insurance
This will remain at £1,048 per month or £12,570 per annum.
Apprenticeship Levy
This remains unchanged at £15,000 per annum per employer.
Construction Industry Scheme
If you have a Limited Company which is registered for CIS you are able to offset any CIS suffered during the year against your PAYE/NI liabilities. It is therefore vital that, if we do your payroll, you ensure that we have had details of all CIS suffered from 6 April 23 to 5 April 24 before 9 April 24.
We can then ensure that the correct figures are included on the final submission of the year to HMRC and that, if they owe you a refund we can request it on your behalf as early as possible.
Statutory Payment Rates
The new standard rates of Statutory Payments for the tax year beginning 2 April 2024 have been announced and are as follows:
Statutory Sick Pay will be £116.75 per week. This is not recoverable by employers.
The daily amount that you must actually pay an employee for each day they are off sick depends on the number of qualifying days they work each week. (see link https://www.gov.uk/calculate-statutory-sick-pay)
Maternity Pay, Adoption Pay, Paternity Pay and the Shared Parental Pay will be £184.03 per week. Small employers can recover 100% of this plus an additional 3% compensation rate.
Changes to Statutory Paternity Pay
Currently fathers and partners can take one block of leave being either 1 or 2 weeks long. This is changing to allow more flexibility and enable fathers to take 2 non-consecutive weeks of leave at any point in the first year after the birth or adoption of their child.
While this comes into being from 6 April it is possible to claim under the new rules if the baby is born early and before 6 April provided their baby’s expected date of birth is after 6 April 2024.
The earnings threshold for entitlement to all Statutory Payments will be £123 per week.
Workplace Pensions Re-enrolment
Many of you will be reaching the3 yearly anniversary of your pension stage date. This is a legal duty where employers need to assess their staff to see who needs to be put back into a pension scheme and write to those staff affected.
You then need to complete and submit a re-declaration of compliance to the Pension Regulator. If we process your payroll for you, we will deal with the re-enrolment for you.
Payroll news questions
If you have any queries with regard to payroll or workplace pensions please do not hesitate to contact us.