Payroll changes from 6th April 2019

Limited Company, News, Payroll,

As another financial year end rolls around, it’s important to be aware of the payroll changes that take effect from the 6th April. They need to be factored into your budgets as well as your monthly cash flows, to avoid any nasty shocks!

Here’s the list of payroll changes:

Itemised pay statements – From 6th April, employers must provide all workers with a payslip, not just those who are subject to a contract. These must also include the total number of hours worked for hourly paid workers, stating the hours for which they are paid.

Auto-enrolment changes – The minimum contributions for employers and employees increase in April. Employers are obliged to contribute a minimum of 3% of an employee’s pre-tax salary, with the employee obliged to contribute 5%.

National Minimum Wage – Increases effective 6th April are as follows:
Over 25 year olds – increases to £8.21 per hour
21 to 24 year olds – increases to £7.70 per hour
18 to 20 year olds – increases to £6.15 per hour
under 18 years old – increases to £4.35 per hour

Directors salaries – Standard monthly Directors’ salaries will increase to £710 per month. This level enables Directors to draw a small salary and be deemed as making National Insurance contributions. This level will depend on an individual’s circumstances and should be reviewed on that basis.

Finally, whilst thinking about payroll changes , please take note of the dates for Easter this year! The multiple Bank Holidays on the 19th and 22nd April could reduce the lead-time for your payroll processing or payment dates.

What are the related deadlines?

Following the payroll year end, there are other deadlines that apply. These are as follows:

  • Distribute Forms P60 to all employees – by 31st May 2019
  • Report employee expenses and benefits via forms P11D – by 6th July 2019
  • Pay any resulting National Insurance – by 19th July 2019

 

Whilst we don’t process payrolls internally, we have an association with a payroll bureau who act for a growing number of happy clients. If you would like to reduce your administrative burden, and recover the processing time every month, do get in touch and we will arrange the necessary introductions.