DATES TO REMEMBER
6th April - New tax year commences
16th April - PSC begins to generate P60s
31st May - Statutory deadline for issuing P60s to employees
6th July - Statutory deadline for P11Ds
19th July - Payment of Class 1A NIC due
Automatic Enrolment Pension Schemes
In accordance with guidance from The Pensions Regulator, schemes operating on a minimum contribution basis will need to increase auto enrolment contributions for both employee and employer from 6th April 2018.
The majority of auto enrolment schemes affected are those where the employee is currently contributing 1% or (0.80% net) and the employer 1%. These schemes will increase to 3% employee (or 2.4% net) and 2% employer contributions from 6th April 2018.
If you are a client of ours and are concerned about the application of this update, please contact one of our workplace pension specialists, Ammelle Djobo: Ammelle@pscpayroll.com Jessica Hagger: Jessica@pscpayroll.com or Ryan Roden: RyanR@pscpayroll.com
Payments in Lieu of Notice
From 6th April 2018 all payments in lieu of notice for leaving employees (PILON) will be treated as taxable and NIC-able. Previously, non-contractual PILONs could be made free from Tax and NIC and such non-contractual payments are now aligned with the contractual version.
The Employment Allowance (EA) reclaim continues into 2018/19 at the rate of £3,000 p/a. Notification of the reclaim to HMRC is via RTI and PSC will continue to carry out this process on client's behalf.
The Apprenticeship Levy introduced in 2017/18 continues into 2018/19 on the same basis and will affect all employers with an annual pay bill of 3M or greater.
Tax codes with certain suffixes will be automatically increased from 6th April unless a coding notice has been issued by HMRC:
Rest of UK Income Tax rates and Income Tax bandwidths effective from 6th April 2018:
Scottish Income Tax rates and Income Tax bandwidths effective from 6th April 2018 ('S' prefix tax-codes):
2018/19 Class 1 National Insurance contributions limits (weekly values):
Student Loan Repayments
Earnings Thresholds (weekly values):
Student loan deductions levels remain 9% above the threshold.
National Minimum Wage
Rates are effective from 1st April: