Payroll
Higher Rate Tax Payers up 43% in the last 3 years
Higher Rate Tax Payers up 43% in the last 3 years In total 2.5m taxpayers will have to pay higher and additional rate tax for the first time, with the situation unlikely to improve before 2029 at the earliest, based on the latest freeze extension announced at the Budget. There will be 6.3m higher rate…
Read MoreMinimum wage graduates on overtime face paying student loan tax
Minimum wage graduates on overtime face paying student loan tax Due to rises in the minimum wage coming in April 2025, some graduates working non-graduate minimum wage jobs may be pulled into paying their student loans back after earning over the threshold. The current threshold depends on what type of student loan was taken out…
Read MoreNational Insurance increases from April 2025
National Insurance increases from April 2025 From April 2025, employers can expect to pay 60% more in National Insurance in the 2025-26 tax year due to National Insurance Contributions (NIC) rises announced at the last Budget. In 2024 an employer paid £1,617 for each full-time employee on minimum wage, this will increase to £2,583 from…
Read MorePAYE celebrates its 80th birthday!
PAYE celebrates its 80th birthday! It will be 80 years ago this year since the introduction of PAYE. When PAYE was introduced, it meant that tax was collected on a weekly and monthly basis rather than twice a year for anyone earning over £100! So, on 6 April 1944, PAYE was introduced to streamline the…
Read MoreTax Code changes in the Scottish Budget
Tax Code changes in the Scottish Budget The finance minister for the Scottish government, has set out her tax and spending plans for Scotland for 2025-26 with a commitment to a 3.5% rise in the two key tax thresholds, affecting the majority of taxpayers. The Scottish government advised that the decision to increase thresholds was…
Read MoreReal time reporting of Benefits in Kind from April 2026
Real time reporting of Benefits in Kind from April 2026 In last month’s budget, the government announced some updates to the January 2024 proposals, which need to be taken into account for the 2025-26 tax year. From April 2026 there will be a phased introduction of the new reporting requirements, where Employers will be required…
Read MoreBudget 2024 – National Living wage to rise by 6.7%
Budget 2024 – National Living wage to rise by 6.7% The Chancellor has confirmed in the budget the 2025 national living wage will rise which will ensure a pay rise for up to three million minimum wage workers as the hourly rate is increased in line with inflation giving a 6.7% increase. This significant rise…
Read MoreStudent Loans and PAYE Payroll
Student Loans and PAYE Payroll HMRC has issued an update to employers which clarifies how to deal with student loan or postgraduate loan start notices, called SL1 or PGL1. It is important to check and use the ‘correct loan or plan type’ on the start notice, and the start date shown on the notice to…
Read MoreNational Minimum Wage – avoiding the pitfalls
National Minimum Wage – avoiding the pitfalls It is often assumed that following national minimum wage (NMW) law is as simple as paying your workers the correct amount. But there is far more to consider to make sure you are compliant. With the UK now into the 2024 national living wage increase to £11.44 (for…
Read MoreAuto Enrolment thresholds remain at £10,000
Auto Enrolment thresholds remain at £10,000 The auto enrolment pension thresholds for 2024-25 will remain at its current levels, with the initial earnings figure of £10,000 unchanged. The lower earnings limit for qualifying earnings will remain at £6,240, and the upper earnings limit will remain at £50,270, in line with the higher rate tax band…
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