As an employer, it is important to stay on top of all the changes that come info effect every April. We've put together a summary of the key fact and figures.
Auto Enrolment increases (phasing)
From April 6 2019 the employer minimum will increase to 3% with a total minimum of 8%.
QuickBooks Online will have an automatic uplift contribution, QuickBooks Desktop users will have to make sure they change the contribution before running their first period in 2019/20.
Auto Enrolment thresholds for 2019/20
The upper and lower limits for Auto Enrolment are increasing in line with National Insurance thresholds. The earnings trigger remains the same.
Personal Tax Allowance and tax codes
UK Tax Allowance has increased
Higher Rate of Income Tax has increased from £34,500 to £37,500. No change to basic or additional rates and no changes to the tax rates.
QuickBooks Online will automatically update the lift in tax codes. QuickBooks Desktop will need to amend the details before running their first period of 2019/20.
Scottish Rate of Income Tax (SRIT)
Welsh Rate of Income Tax (WRIT) (Same as the UK)
National Insurance update
No changes to the NI rates and no changes to Employment Allowance (£3,000 per year).
Changes to NI thresholds:
There are no changes to the employer recovery of statutory paternal leave payments.
Student & Postgraduate Loans
The Goverment have increased both Plan 1 & Plan 2 Student Loan repayment thresholds for 2019/20.
April 2019 sees the first postgraduate loan being required to be recovered via payroll on earnings over £21,000 at a rate of 6%.
Changes to earnings arrestment deductions & protected minimum balance from April 2019:
An earnings arrestment is where a creditor can recover unpaid debts by making the individual's employer deduct money directly from their wages and the employer then sends the money to the creditor.
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