Here’s a summary of payroll changes that came into effect on 1 April 2019 that employers need to be aware of:
- The Personal Tax Allowance increases to £12,500 per annum.
- The Basic Tax Threshold increases to £37,500 (an increase of £3k). This means the higher rate threshold will be £50,000 in 2019/20.
- For employees living in Wales, tax codes will be prefixed with a C.
- Statutory Sick Pay (SSP) increases to £94.25 per week.
- Statutory Maternity and Paternity Pay increases to £148.68 per week.
- Holiday pay should be based on 12 weeks’ average pay.
- Payslips must be provided to all workers.
- Where an employee’s pay varies by the amount of time worked, the number of hours worked must be shown on the payslip.
- Employees must notify HMRC directly of any change of address, rather than depending on payroll to do it for them. Employees should be encouraged to open a Personal Tax Account with HMRC.
All personal employee data must be stored and processed in line with the General Data Protection Regulation (GDPR). If you are sharing data with a third-party (such as your payroll provider) you should make sure the data is encrypted or shared via a secure portal.