Please take a look at the information below. Here is a check list you may need to go through before starting to run your payroll in the new tax year, 2018/19.
- Employment allowance will remain at £3,000 per annum for the 2018/19 tax year.
- If you claimed the allowance in the tax year 2017/18, you do not need to do anything further, your claim for the 2018/19 tax year will be automatic.
- If you have not previously claimed the allowance but are now entitled to it you will need to make the claim via an EPS (Employer Payment Summary).
Personal Allowance/Tax Codes
- The personal allowance for 2018/19 is £11,850. This means that the standard tax code will be 1185L.
- You should increase all employees with a tax code ending in ‘L’ by 35 unless you receive a tax coding notice from HMRC. For example, if an employee’s tax code is 1070L in the tax year 2017/18, you will increase it by 35 to 1105L for 2018/19. You should also remove any w1/m1 status tax codes.
- Any other tax codes should only be changed if you receive official notification to do so.
- Statutory holidays are calculated at 5.6 weeks per annum. This equates to 28 days for a person working 5 days per week, including bank holidays.
- Holidays for casual workers should be calculated at 12.07% of hours worked, for example, if an employee works 30 hours in one week then they have accrued 3.62 hours’ holiday.
- All employees are entitled to holiday pay, including part time and casual staff.
National Minimum/Living Wage
- The National Living Wage and National Minimum Wage will increase on 1st April 2018 to the following rates:
25 and over
21 and over
18 to 20
*This rate applies to apprentices aged 16-18 and those aged 19 or over in their first year of an apprenticeship. All other apprentices are entitled to the minimum wage for their age group.
If we complete your payroll for you, we will check the rates as we do the payroll. However, it is your responsibility to ensure your staff are being paid above the national minimum/living wage so we would urge you to double check the payroll for the new rates, especially if your employees are on a salary.
Small employer’s relief
- If you do your own payroll and use Sage payroll software, please ensure you have marked on that you are a small employer if this is the case. You can do this by going into company>settings>tick box ‘Eligible for Small employer’s relief for 2018/19’
- You are classed as a small employer for this purpose of your total National Insurance bill for the previous tax year was less than £45,000
- Ticking this box, lets you claim back additional compensation on SMP, SPP, SAP and ShPP.
HMRC prefer payment electronically, bank details are as follows:
Account name: HMRC PAYE
Account number: 12001039
Sort code: 08-32-10
Payment Reference: Your accounts office reference
- Going forward all eligible employees will be automatically enrolled into a pension scheme if they have not enrolled previously. Your employees are considered eligible if:
- They are aged 22 years or older, and, under the state pension age
- Have annual employment income of over £10,000 per year
The process of auto enrolment has to be repeated every 3 years from your original staging date. This will mean you have to:
- Re-enrol all eligible employees who have previously opted out (they must opt out again if they do not wish to stay in the scheme)
- Issue relevant correspondence to employees regarding their re-enrolment
- Complete a re-declaration of compliance within 5 months of your re-enrolment date.
- If we do your payroll for you we will take care of points 1 & 2 but you must let us know if you want us to complete your declaration for you. We will charge a flat fee of £50 plus VAT
Payroll year end 2018/19
If you complete your own payroll please remember that although you do not need to submit a P35 for a payroll year end anymore, you must do a year end submission making HMRC aware that there will be no further data submitted for that tax year. This must be done on or before 19th April 2018.
You will also need to issue P60’s to your employees before 31st May 2018.
For help or if you are looking to outsource your payroll please contact us on 01484 515544 or email email@example.com