Payroll changes: a summary

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.

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