Payroll changes for the 2018 / 2019 tax year

With a new tax year fast approaching there are some key changes to be aware of:

• the tax free personal allowance will increase to £11,850 and the new emergency tax code will be 1185L.
• the National Living Wage NLW (for those aged 25 & over) will increase from £7.50 to £7.83.
• the National Minimum Wage NMW will increase as follows:

Employees aged 21-24 – from £7.05 to £7.38

Employees aged 18-20- from £5.60 to £5.90

Employees aged under 18- from £4.05 to £4.20

Apprentices aged under 19, or aged over 19 in the first year of their apprenticeship – from £3.50 to £3.70 

• the minimum contribution rates for workplace pension schemes will increase to 5%, with a minimum of 2% employer contribution.  (eg. employer 2%, employee 3% contribution)
• Statutory Sick Pay will increase from £89.35 per week to £92.05 per week.
• Statutory Maternity, Paternity, Adoption and Shared Parental Pay will increase from £140.98 per week to £145.18 per week.
• the repayment threshold for student loans will increase as follows:
  Plan type 1 loans from £17,775 to £18,330
  Plan type 2 loans from £21,000 to £25,000

Please do not hesitate to contact us if we can help you meet your payroll and workplace pension duties.