As an employer, it’s important to stay on top of all the changes that come into effect every April. We’ve put together a summary of the key fact and figures.
Auto Enrolment increases (phasing)
On 6 April 2018, minimum Auto Enrolment contributions will increase. At the moment both employers and employees need to contribute at least 1% (making a total of 2%) to qualify for the scheme. This will rise to a minimum of 2% to be paid by employers and 3% by employees, making a total of 5%. A further increase will take place from 6 April 2019.
QuickBooks Online will automatically uplift the minimum contribution, QuickBooks Desktop users will have to make sure they change the contribution before running the first period in 2018/9.
|Dates||Minimum employer contribution||Minimum employee contribution||Total minimum contribution|
|Before 5 April 2018||1%||1%||2%|
|From 6 April 2019||3%||5%||8%|
Auto Enrolment thresholds 2018/2019The upper and lower limits for Auto Enrolment are increasing in line with National Insurance thresholds. The earnings trigger remains the same.
|Weekly||2 Weekly||4 Weekly||Monthly||Quarterly||Half Yearly||Annual|
|The lower level of qualifying earnings||£116.00||£232.00||£464.00||£503.00||£1508.00||£3016.00||£6032.00|
|Earnings trigger for Auto Enrolment||£192.00||£384.00||£768.00||£833.00||£2499.00||£4998.00||£10000.00|
|The upper level of qualifying earnings||£892.00||£1783.00||£3566.00||£3863.00||£11588.00||£23175.00||£46350.00|
Personal Tax Allowance and tax codesAcross the UK, the Personal Tax Allowance for 2018/19 is £11,850.
If you are using QuickBooks Online, the tax codes will automatically uplift if you have any employees with an L, M & N suffix. If you are using QuickBooks Desktop, this will need to be completed manually.
- The emergency tax code is now 1185L wk1/mnth1
- L suffix codes will increase by 35 (e.g. 1150L become 1185L).
- M suffix codes will increase by 39 (e.g. 1265M becomes 1304M).
- N suffix codes will increase by 31. (e.g. 1035N become 1066N).
There are no changes to National Insurance rates (%) or Employment Allowance, but the thresholds will be raised.
New weekly thresholds
- The Lower Earnings Limit has increased from £113 to £116
- The Primary Threshold has increased from £157 to £162
- The Secondary Threshold has increased from £157 to £162
- The Upper Earning Limit, Upper Secondary Threshold, and Apprentice Upper Secondary Threshold have increased from £866 to £892
New monthly thresholds
- The Lower Earnings Limit has increased from £490 to £503
- The Primary Threshold has increased from £680 to £702
- The Secondary Threshold has increased from £680 to £702
- The Upper Earning Limit /Upper Secondary Threshold /Apprentice Upper Secondary Threshold – From £3,750 to £3863
- Statutory Sick Pay rises from £89.35 to £92.05 per week.
- Statutory Maternity, Paternity, Adoption and Shared Parental Pay rises £140.98 to £145.18 per week.
There are no changes to the amount employers can recover.
Student Loans The Government has increased Student Loan repayment thresholds for 2018-19. Both loans are deducted at 9%:
|Plan 1||£18,330||£17,775||Increase of £555|
|Plan 2||£25,000||£21,000||Increase of £4,000|
These figures will apply to all current and future borrowers that employers make Student Loan deductions for.
Scottish Rates of Income Tax 2018/2019The Scottish Government is introducing two new tax codes and changing the thresholds for two other rates:
|Tax rate||Tax Code||Percentage||Threshold|
|Starter rate (new)||Not required||19%||£11,850–13,850|
|Basic rate||SBR||20%||£13,851–24,000 (change)|
|Intermediate rate (new)||SD0||21%||£24,001-43,430|
|Higher rate||SD1||41% (change)||£43,431–150,000 (change)|
|Top rate||SD2 (new)||46% (change)||£150,001 and above|