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Payroll Updates 2024 - 25
Payroll Updates 2024 - 25
Post date
March 2024
Payroll Updates 2024-25
For the 2024-5 tax year personal allowances will yet again remain the same at £12,570.00 per annum
New Minimum Wages Increases
April 2023 April 2024
Apprentice £5.28 £6.40
Under 18 £5.28 £6.40
18-20 £7.49 £8.60
21-22 £10.18
23 and over £10.42
21 and over £11.44
The biggest change is that there is no difference in hourly rates between ages 21 and 23 – it is now just one rate from the age of 21
Employer Allowance
The Employer Allowance will be restricted to employers with National Insurance Contributions (NIC) liabilities of under £100,000.00 in the previous tax year. The amount that employers can reduce their Ers NI liability remains at up to £5000.00
National Insurance
The government has announced another cut to the main rate of Class 1 employee NICs from 10% to 8% from 6 April 2024. This is worth £450.00 per year to the average worker.
National Insurance holiday for employers of veterans
Guidance is now available for employers wishing to take advantage of the National Insurance holiday for employers of veterans. Introduced on 6 April 2021, employers who hire former members of the UK regular armed forces during the first year of their civilian employment will be eligible for a zero-rate of secondary National Insurance contributions for up to 12 months. Employers will be able to claim this relief through Real Time Information submissions from 6 April 2022 and any earnings of qualifying veterans hired from 6 April 2021 will be eligible for retrospective National Insurance contributions relief.
Student Loan Thresholds
Student loan thresholds are increasing in April 2024 to:-
Plan 1 £24990 (from £22015.00)
Plan 2 £27295.00 (no change)
Plan 4 £31395.00 from £27660.00
Postgraduate Loan £21,000.00 (no change)
SSP is increasing from £109.40 per week to £116.75 per week
SMP, SAP and SPP is increasing from £172.48 to £184.03 per week.
Child Benefit Change
Another measure the government announced was on the High Income Child Benefit Charge, and an increase to the threshold to £60,000 from 6 April 2024, with a taper up to £80,000. The charge will be 1% of the Child Benefit for every £200 of income that exceeds £60,000 and will equal the payment for income that exceeds £80,000.
Your employees may be interested in claiming Child Benefit or restarting Child Benefit payments if they have previously opted out. The charge is tapered, so if they, or their partner, earns between £60,000 and £80,000 it can still be worth their while financially to claim. Claims for Child Benefit are automatically backdated for 3 months, or the date of birth of the child if later.
Paternity Leave (Amendment) Regulations 2024
Changes to two-week entitlement – employees taking paternity leave will be able to take their statutory two-week entitlement as two separate blocks of one week (if they choose to do so), rather than the current position which requires it to be taken as either two consecutive weeks, or just one single week in total.
When leave can be taken – paternity leave will be able to be taken any time during the 52 weeks after the birth. Currently, paternity leave has to be taken in the 56 days following birth.
Who the changes apply to – these changes will apply in all instances where the expected week of birth is on or after 06 April 2024.
It is important that HMRC have your employees correct address on its records – this can be checked on the HMRC website by going onto their “Personal Tax Account” through www.gov.uk. It does not get updated through the payroll software. We would recommend that everyone sets up their own Government Gateway account to ensure that all of the details held are correct.
