Confused by Tax Relief at Source for Pensions?
Auto enrolment has been with us for a while now. Employers are required to automatically enrol all eligible workers into a pension scheme in which a minimum total contribution comprises: the employer's contribution, the worker's contribution and tax relief. The government offers financial incentives to encourage individuals and employers to save for their retirement and one of these is pensions income tax relief. But isn't it all a bit complicated? We explain. What are the Tax Relief Bands?...
Can Employees take Holiday When Off Sick?
We are sometimes asked by our clients if an employee can take holiday when they are off sick. The simple answer is yes, because employees can request that they use their holiday during periods of sickness instead of receiving sick pay. But why do it? Statutory Sick Pay (SSP) is paid after 3 days of sickness and is, in 2018-19, £92.05 per week. Given that the first three days of sickness are unpaid that is why this is often the period that employees would like to take as holiday so that they...
Payroll, Benefits and the November 2018 Budget
As a Payroll Services Provider, we keep a close eye on the budget. Here is a summary of the key announcements that the Chancellor made on Monday 29th October, which will have an impact on ?pay and benefits. Personal Allowances. From April 2019, the tax-free personal allowance will increase from £11,850 to £12,500, while the higher-rate tax threshold of 40% will also rise from £46,351 to £50,000. Both thresholds will remain at the same level throughout 2020 and 2021, and then increase in line...
Payroll and Minimum Wage Breaches
Workers Missed out on £15.6 Million in Pay Due to Minimum Wage Breaches If you employ people, then you have to pay them the minimum wage (apart from a few exceptions). It's the law. Despite this, minimum wage breaches, including breaches of the National Living Wage, have cost workers from across the UK a combined total of £15.6 million in lost wages in the last financial year. Figures released by the Government show that around 200,000 workers were affected in 2017/18, in what was the highest...
The Welsh Rate of Income Tax – and Payroll
There is always something happening that will have an effect on payroll. Here we report on the Welsh Rate of Income Tax (WRIT), which is due to start on 1st April. From a payroll perspective this will mean that Payroll Professionals, including outsourced payroll providers such as JL Payroll will need to be aware of the challenges ahead. What is WRIT? April 2019 will see the National Assembly for Wales deliver a variation to their rates of income tax that will be payable by Welsh taxpayers. The...
