Paying your employees
> HMRC Compliance changes
HMRC Compliance changes
[For AccountEdge Plus and AccountEdge Network Edition users only]
Payroll Year 2018/2019
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National Insurance Tables
The National Insurance Rates and Limits for 2018/2019 are:
NI LIMITS AND THRESHOLDS
LEL
PT
ST
UEL/UST/AUST
Weekly
£116.00
£162.00
£162.00
£892.00
Two Weekly
£232.00
£324.00
£324.00
£1,783.00
Four Weekly
£464.00
£648.00
£648.00
£3,566.00
Monthly
£503.00
£702.00
£702.00
£3,863.00
Annual
£6,032.00
£8,424.00
£8,424.00
£46,350.00
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Tax Tables
The Emergency Tax Code for 2018/2019 is 1185L (W1/M1).
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Student Loan Deduction changes
From April 2018 the Annual Threshold for Plan 1 has increased to £18,330 and for Plan 2 to £25,000. The deduction rates remain the same at 9%. Your software can calculate the deduction amount on the paycheques but will need to have the Plan Type used by the employee selected.
In the employee’s card payroll information deductions window, if the payroll year is 2019 the option to select the Student Loan Deduction Plan Type 1 or 2 will become available.
If the payroll year is 2018 there is only one threshold rate used to calculate the deduction.
Scottish Tax Tables
From April 2017 the Scottish Government can vary the rate of Income Tax (PAYE). This rate is determined by the employees tax code. If the first letter of an employees tax is “S” then the Scottish rate (SRIT) should be used.
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For 2018 to 2019 the Scottish rates are as follows:
Starter tax rate is 19% on annual earnings above the PAYE tax threshold up to £2,000.
Basic tax rate is 20% from £2,001 to £12,150.
Intermediate tax rate is 21% from £12,151 to £31,580.
Higher tax rate is 41% from £31,581 to £150,000.
Top tax rate is 46% on annual earning above £150,000.
When processing payroll for the payroll year 2017 and later, if the employees tax code is prefixed by ‘S’, the Scottish Income Tax rates will be used for tax calculations.
RTI - Full Payment Submission (FPS) file will NOT show the ‘S’ prefix.
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UK Tax Tables
The 2019 tax rates are the same as the 2018 tax rates. The PAYE thresholds have changed.
The Emergency Tax Code for 2018/2019 is 1185L (W1/M1).
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Employer Allowance
For the 2018to 2019 payroll tax year the Employer Allowance has been increased from £2000.00 to £3000.00
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Non-cash wages
From 2019, the “Non_Cash Wages - Payroll Benefits in Kind’ wages has been added. These wages are subject to PAYE tax. For example, shares and commodities you provide to your employees.
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Employee RTI Full Payment Submission
For payroll year 2019 an “Included serious lump sum payment” option has been added.
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Full Payment Submission
From 2019, going forward, if a Student Loan Deduction was used for an employee this deduction will be included in the Full Payment Submission+.
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Earlier Year Update
The 2017-2018 has been added for payroll year 2019.
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Benefits in Kind (BiKs)
[Displays only if the current payroll year is 2019] Select if you choose to account for the tax on the benefits in kind (BiKs) you provide to your employees through PAYE each payday.
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Car Benefits
From April 2018, as part of payroll benefits in kind, car data must be reported on the RTI Full Payment Submission
Payroll Year 2016/2017
[For AccountEdge Plus and Network Edition users only]
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Student Loan Deduction changes
From April 2016 there will be 2 thresholds for Student Loan Deductions. Your software can calculate the deduction amount on the paycheques but will need to have the Plan Type used by the employee selected.
In the employee’s card payroll information deductions window, if the payroll year is 2017 the option to select the Student Loan Deduction Plan Type 1 or 2 will become available.
If the payroll year is 2016 there is only one threshold rate used to calculate the deduction.
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Scottish Rate of Income Tax
From April 2017 the Scottish Government can vary the rate of Income Tax (PAYE). This rate is determined by the employees tax code. If the first letter of an employees tax is “S” then the Scottish rate (SRIT) should be used. For 2017 the Scottish rate will be the same as the rest of UK.
When processing payroll for the payroll year 2017 and later, if the employees tax code is prefixed by ‘S’, the Scottish Income Tax rates will be used for tax calculations.
The 2017 tax rates have not changed with the exception of the UEL (Upper Earning Level) threshold being increased and the UAP (Upper Accrual Point) being removed.
RTI - Full Payment Submission (FPS) file will NOT show the ‘S’ prefix.
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NIC Category (Letter) changes - End of Contracting Out
From April 2016 pension schemes will no longer use a contracted-out salary related (COSR) occupational pension scheme to contract out of the State Scheme.
If the payroll year is 2017 then only the following NI letters are valid:
A Standard Rate
B Reduced Rate
C (Pensioners) Rate
H Apprentice Rate (Under 25)
J Deferred Rate
M Standard Rate (Under 21)
Z Deferred Standard Rate (Under 21)
X No contributions due
ECON and SCON fields are only required when Contracted-Out NI contributions are used.
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Apprentice NIC category
New Apprentice NI category - NI Table Letter ‘H’.
From 6 April 2016 a zero rate of Class 1 Secondary contributions has been introduced for apprentices under the age of 25.
To use this category the employee must be apprentices and under the age of 25.
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Flexible Pension Drawdown payments
From payroll year 2017 HMRC requires some pension payments, ‘Flexible Pension Drawdown’ payments and ‘Pension Death Benefit’ payments to be reported in the FPS submission. The Flexible Pension Drawdown, Pension Death Benefit and Trivial Commutation Payment are mutually exclusive. They are not displayed if the payroll year is 2016 or earlier.
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ECON removed from Full Payment Submission
As part of the Contracting-Out changes the ECON field has been removed from the submission for payroll year 2017 onwards.
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Employer Allowance
For the 2016 to 2017 payroll tax year the Employer Allowance has been increased from £2000.00 to £3000.00
Related Topics
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Processing your payroll
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Reviewing payroll information
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RTI Full Payment Submission
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