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. 

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.

Employment Allowance

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. 

Apprenticeship Levy

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

Tax codes with certain suffixes will be automatically increased from 6th April unless a coding notice has been issued by HMRC:

National Minimum Wage

Rates are effective from 1st April: