Employment Allowance. What Is It? How Can It Be Claimed?
The Employment Allowance is set at a maximum of £3,000 and can be claimed by any business which has a payroll with at least one employee or two directors earning over the secondary earnings threshold. The Allowance is offset against your Class 1 National Insurance contributions due for the month, and therefore reduces the total amount of tax and PAYE owed to HMRC in that month. Importantly, the Employment Allowance cannot be used to reduce employee contributions or tax deductions. Unused...
New Payroll Year ? New Pay Rates
The new payroll year begins on 6 April 2020, which means that there are a range of new payroll rates for the national living wage and national minimum wage that employers need to be aware of in order to comply with statutory legislation and avoid the risk of fines, or worse, for non-compliance. The new rates National Living Wage and National Minimum Wage Rates for 2020-21 Age 25 & over increases from £8.21 per hour to £8.72 per hour Age 21 to 24 increases from £7.70 per hour to £8.20 per...
Do I Really Have to Have a Payroll?
Many of our clients are smaller businesses who do not have in house HR or payroll departments. We have seen these businesses grow over the years. Some started as one-man bands and we were often asked the question whether, when the first employee was taken on, they needed to be put on the payroll. The answer is yes, if they are above the tax thresholds and and/or has more than one job, even if the person is not being paid a great deal or is perhaps part time. It's worth remembering that...
What Happens if you are Late Filing your Payroll Information?
HMRC require payroll returns to be filed with them either on or before the date when employees are paid. Most employers have a regular payment date when they pay their employees, and as an outsourced payroll supplier, we always make sure that we file the payroll return on or before the due date. However, there may always be occasions when the employer cannot hit the due date. This article looks at why that might happen and what the consequences can be. What Causes Late Filing? The main reason...
New National Living and Minimum Wages Rates from April 2020
From April 2020, the new rates are: The National Living Wage for ages 25 and above - up 6.2% to £8.72 The National Minimum Wage for 21 to 24-year-olds - up 6.5% to £8.20 For 18 to 20-year-olds - up 4.9% to £6.45 For under-18s - up 4.6% to £4.55 For apprentices - up 6.4% to £4.15 A Reminder of What Can Happen if You Don't Pay the Correct Amount It's against the law to pay below the National Minimum Wage or National Living Wage or to falsify pay records. Investigation by HMRC Anyone can report...
