The new tax year is fast approaching listed below are some of the key changes you should be aware of.
The tax free personal allowance will increase from 1st April 2018 to £11,850, the new emergency tax code will be 1185L.
The National Living Wage for those aged 25 and over increases from £7.50 to £7.83.
The National Minimum wage rate increases are also changing detailed below are the new rates effective from 1st April 2018
Employees aged 21-24 – from £7.05 to £7.38
Employees aged 18-20- from £5.60 to £5.90
Employees aged under 18- from £4.05 to £4.20
Apprentices aged under 19- from £3.50 to £3.70 This rate will also apply to apprentices over the age of 19 in the first year of their apprenticeship
Statutory payments will also increase in April
Statutory Sick pay will increase from £89.35 per week to £92.05 per week.
Statutory Maternity, Paternity, Adoption and shared parental Pay will increase from £140.98 per week to £145.18 per week.
From April the repayment threshold for student loans will increase
Plan type 1 loans will increase from £17,775 to £18,330
Plan type 2 loans will increase from £21,000 to £25,000
If this all sounds a little confusing why not give us a call about outsourcing your payroll and let us deal with all the changes.