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All the best,
The SK Accountants team
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Following the Spring Budget a few weeks ago, there are several key changes to take note of to ensure that your payroll is up to date.
With the new changes set to come into effect from as early as 1 April, you must get prepared now.
Wage Rises
From 1 April, both the National Living Wage (NLW) and National Minimum Wage (NMW) will increase.
The NLW is set to expand to everyone aged 21 and over, at a rate of £11.44 per hour.
For those under 21 but over 18, the NMW will apply at a rate of £8.60 per hour.
To ensure compliance, your employees must be paid at least the minimum wage for their age group, even if they are salaried.
These new rates must be applied to the pay periods beginning or after 1 April 2024.
Outsourcing your payroll responsibilities to our team will ensure you pay the correct rates and don’t fall foul of the law.
National Insurance Contributions
The Chancellor has also announced changes to National Insurance contributions (NICs).
Class 1 NICs will be cut from 10 per cent to 8 per cent.
The main rate of Class 4 NICs will also be cut by 2 per cent, putting them at 6 per cent.
From 6 April, you must ensure that your payroll reflects these changes to NICs. For best practice, keep your employees’ information up to date to ensure that the contributions are correct.
Changes to paternity leave
From 6 April, fathers and partners will have more flexible access to paternity leave.
Currently, only one block of two weeks can be taken as part of paternity leave, however, these changes will allow fathers and partners to take those two weeks separately.
They can also take this time at any point during the child’s first year. All they are required to provide their employers with is 4 weeks’ notice.
For this time off, fathers and partners can claim Statutory Paternity Pay (SPP).
You can reclaim SPP through your payroll software, however, if you need advice, our team can guide you.
You can usually claim 93 per cent of SPP and any other types of statutory pay. If your business qualifies for Small Employer’s Relief, you will be able to claim 103 per cent.
Holiday pay
Whilst various changes to holiday pay have already come into force, there are a few that will happen in April.
Staring 1 April, the following changes will come into force:
The Government website has more in-depth guidance on this.
If you employ irregular-hours or part-year workers, it is important to calculate their holiday entitlement and pay following these new guidelines from 1 April.
Your year-end responsibilities
The majority of these changes come just before the end of the tax year, adding additional pressure to your year-end tasks.
Reminder that you must do the do the following:
If you want to ensure complete compliance, it is best to involve a payroll expert.
As well as ensuring that your payroll is compliant, outsourcing allows you to save valuable time that can be put elsewhere into the business.
You will also have peace of mind knowing that your employees are always paid correctly and on time.
Contact our team today to find out how we can help.
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