Payroll legislation is changing in 2015, not only are tax codes changing but the way payroll is processed and reported to the HMRC will also change! You need to be up to date with these changes as you need to be cautious otherwise risk the liability of paying a fine and having to redo the entire payroll system at a later date.
Real Time Information (RTI)
RTI is a relatively new system introduced by HMRC in hopes to improve the operation of Pay as you Earn (PAYE). Under the RTI system employers would be required to send PAYE, NIC and student loans every time they pay their employees, rather than with their end of year tax return. HMRC hopes that RTI will help them to operate more efficiently and accurately.
From 6th March 2015 Companies that operate with 30 employees or less will start to be fined for £100 or more for a late filing or no filing of PAYE information in comparison to previous years the same fine was billable to companies with 0-9 employees. In 2014 HMRC also decided to make the reporting dates more lenient in comparison to previous years which will likely following on for 2015.
Employers National Insurance Contribution Allowance
Employment Allowance is a Government scheme to encourage the employment of new staff by providing support for businesses in the UK.
Since 6th April 2014, charities and employers have had the opportunity to claim back up to £2000 per tax year from their Class 1 National Insurance Contributions. The idea of this is to also be able to offset from your tax contributions. As Companies have been unaware of this, HMRC have extended it for the 2015/2016 tax year to also cover off support and care workers.
Shared Paternal Leave
This is a new piece of legislation that will be introduced after the 5th April 2015; it entitles parents or parents adopting a child to share their caring responsibilities depending on their preferences and circumstances. Parents can submit a notice of leave up to 3 times during their Childs first year; it can begin on any day of the week and must be taken in complete weeks.
In order to qualify for the shared paternal leave option the mother must have a partner, qualify for maternity leave as well as provide notice of their intention of reducing their maternity leave. You must have worked for 26 weeks with your current employer prior to the 15th week of the due date of the child. The mother’s partner must have worked for 26 weeks and earned an average of£30 a week in 13 of the 36 weeks. The mother may only share leave with one person who may only be their husband, the Childs father, a civil partner or a partner living in a relationship.
The mother must provide their employer 8 weeks of notice to their intention of opting for the shared paternal leave after expressing their intention of leaving their maternity leave. The mother must also take 2 weeks of maternity leave in order to be entitled to shared paternal leave.
Married Couple Allowance
You can claim a married couple allowance if you’re married or in a civil partnership, you’re living with your spouse or civil partner, your personal income is less than £10,600 and your spouse’s or civil partner’s income is between £10,601 and £42,385 and if you were both born after 6th April 1935.
Married Couples or Civil Partners can transfer up to 10% of their personal allowance to their partner.
Abolition of Employers National Insurance Contributions for Employees
From 6 April 2015 employers with employees under 21 years old will no longer have to pay Class 1 secondary National Insurance contributions on earnings up to the Upper Secondary Threshold for those employees. This will encourage more employment of younger people to invest early. If need more advice or strategy about investment check this online personal loans, also offer borrowing cash online with lower interest.
The zero rate won’t apply to Class 1A or Class 1B NICs. Class 1 secondary NICs will apply if the employee is earning above the Upper Secondary Threshold.
Asmat Payroll system, APS, IR 35 compliant, Travel and subsistence compliant, Agency worker regulation, Direct supervision and control, DSC, No more umbrella companies, Compliant with new HMRC legislation for contractors, Payroll processing , Take home pay all clarified, Expenses claimed, Personal serviced companies, PSC, IR35,Risk free employed income model