What’s new in payroll?
Well, the biggest change for small employers has to be the roll-out of pension auto enrolment. Many large employers have already passed their staging dates with smaller employers following suit over the next couple of years.
The rules are varied depending on age & salary but workers that are :
– aged between 22 and state pension age
– earn more than 10,000 per year
– work in the UK
will automatically enrol.
Have a look at this Auto Enrolment Essential Guide to see how it works.
From 6 April 2016 the personal allowance increases to £11,000 per annum.
National Living Wage
A compulsory National Living Wage is to be introduced on 1st April 2016 for all working people aged 25 and over and will be set at £7.20 per hour.
The current National Minimum Wage for those under the age of 25 will continue to apply. These hourly rates are:
Ages 21-24 £6.70
Ages 18-20 £5.30
Under 18 £3.87
Marriage Allowance is a new way for couples to transfer a proportion of their personal allowance to their husband, wife or civil partner – a potential tax saving of up to £212 per tax year.
To benefit as a couple, the lower earner needs to have an annual income of £10,600 or less, and the partners income must be between £10,601 and £42,385.