Payroll Update 2014/15
The new tax year has started and I list below the new legislative changes that come into effect from April 2014. Please ensure that your payroll software is updated to include the latest PAYE codes, tax bands and statutory changes.
- – New basic personal tax code to be 1000L
- – All other L codes to be increased by 56
- – Statutory Sick Pay to be £87.55 a week
- – Statutory Maternity (Paternity and Adoption) Pay to be £138.18 a week
- – Student Loans to be repaid at (9% if earnings exceed £1,409.16 per month)
- – £2,000 Employment Allowance comes into effect from April 2014
- – New tax year optimum payment to a director £661 per month (although interaction with the Employment Allowance needs to be considered and possibly a £10,000 a year salary)
- – Maximum weekly redundancy payment increased from 1st April to £464
- – Introduction of Flexible Working for all employees has to be considered by employers and can only be denied for a limited number of business reasons.
- – The percentage threshold scheme for employers whereby an employer can claim back a proportion of statutory sick pay paid in the month has been abolished PLUS transitional arrangements are in place for any SSP due in March 2014 but included in the April payroll
Penalties for late submissions or noncompliance with Real Time Information regulations were to be introduced from April 2014. These will now be phased in from October 2014. Automated late penalties for late payment of PAYE have also been postponed until April 2015.
The current concession that allows small businesses (under 50 employees) to capture casual payments to employees in the next usual pay period stops on 5 April 2014. The concession is extended for micro employers (less than 10 employees) until April 2015.
If you would like more information please contact Margaret Merrifield on 01524 388719.