Staying up to date with the latest changes in payroll is important for processing accurate and timely records. With the help of effective accountancy payroll software, implementing these changes is a smooth and simple process, yet there are is still a wide range of information to consider when providing payroll advice to your employees and customers. Each year, new and updated legislation comes into force with changes in rates and thresholds for anyone operating payroll.
As the new tax year will be soon be here, there are several updates that will come into effect from April 2018. These amendments include everything from income tax thresholds, advisory fuel rates for company cars and the rise in statutory sick pay (SSP).
Take a look at some of the most prominent changes in payroll legalisation for the new tax year:
Income tax changes
With the recent Autumn Budget announcements, changes in personal tax allowance will come into effect from April 2018. Your personal allowance is the tax-free amount a person can earn up to a salary of £100,000. This amount is set to rise to £11,850 from its current rate of £11,500.
Minimum wage increases
Another important element of the Budget highlighted the increase in minimum wage that is effective from April 2018. The mandatory minimum wage and the non-mandatory National Living Wage for workers 25 and over will increase to £7.83 p/h. Other age groups will also see a rise to £7.38 for 21 – 24 year olds, £5.90 for 18 – 20 year olds and £4.20 for 16 – 18 year olds.
If you process apprenticeship wages, the minimum wage will also increase for people under 19 in the first year of their apprenticeship from £3.50 p/h to £3.70 p/h.
Student loan threshold changes
Another important threshold change applies to processing student loans. Many employees will see a slight change from April 2018 as the threshold for both student loan plan types increases. The changes will apply to all current and future borrowers for whom employers and payroll providers process deductions. The current rate for Plan 1 loan stands at £17,775 and will rise to £18,330 and Plan 2 loans will increase from £21,000 to £25,000.
General Data Protection Regulation (GDPR)
GDPR or the General Data Protection Regulation, has been a widely talked about matter in the last year and affects every industry. It will replace the current Data protection Act 1998 and harmonise data protection laws across the EU from May 2018. Payroll providers will be fully on-board with the upcoming changes and will help you to understand any queries regarding information stored on the system.
Opting for bureau payroll software offers you an easy and efficient way to stay up to date with the latest changes in legislation and thresholds. Payroll software updates ensure a smooth process for amending information for the new tax year and are able to implement changes with little interruption to day-to-day processing.
Primo Payroll have the necessary expertise and software to deal with these changes for your business and can revolutionise the way you arrange your payroll processing for accountants. Call us on 00 44 (0)845 456 7181, or email firstname.lastname@example.org to find out more about our finance or payroll solutions for accountants and bureaus. Our head office is based at Unit 2A, Bourne Court, Unity Trading Estate, Woodford Green, Essex IG8 8HD and we work with companies across the UK.