Payroll In 2023/24
With the new tax year here, it’s important to stay informed about the upcoming changes that will impact your payroll in 2023/24. As such, the team at Payroll Umbrella Services
has taken the liberty to provide a summary of the key information below for your reference. Please take a moment to review these details as you may need to take immediate action.
-The personal allowance will remain at £12,570 per annum. After April 6th 2023, it is essential to remove any Week1 or Month1 markers for all employees.
-It is advisable to conduct a thorough review of your employee list and issue a P4% for individuals who will not be carried forward into the new tax year. This should be completed before finalizing your payroll for the 2022/23 tax year.
If you have any queries regarding your payroll in 20203/24 or workplace pensions, do not hesitate to reach out to us!
National Minimum Wage (NMW)/Living Wage (LW)
Here are the updated rates for the upcoming period:
- Living Wage (23 and over): £10.42/hour
- Aged 16 to 17: £5.28/hour
- Aged 18 to 20 inclusive: £7.49/hour
- Aged 21 to 22: £10.18/ hour
- Apprentices aged under 19: £5.28/hour
- Apprentices aged 19 and above but in their first year: £5.28/ hour
The Employer’s Allowance for 2023/24 will remain at £5000. However, please note that this allowance is not applicable to schemes where the sole director is the only employee.
In regards to National Insurance (NI) rates for 2023/24, the following applies:
- Employees’ NI rate will be 12% on earnings exceeding the primary threshold, up to and including the upper earnings limit (£1048 – £4189 per month), effective from 6th April.
- Employers’ NI rate will be 13.8% on all earnings beyond the secondary threshold which is £758 per month
Employers’ NIC for Employees under 21
Employers will be exempt from paying Class 1 Secondary Threshold NICs on earnings that are up to the UST for employees below 21 years. However, Class 1 secondary NICs will still apply to earnings exceeding the UST. Both the UST and the Upper Earnings limit will be set at £967 per week.
In addition, there’s an Apprentice Upper Secondary Threshold specifically for people under 25 years. This threshold’s value is the same as the UST, (£967 per week).
Construction Industry Scheme
If you have a Limited Company registered for Construction Industry Scheme (CIS)
, then you have the option to offset any CIS, experienced during the year against your National Insurance or PAYE liabilities. If Payroll Umbrella Services handles your payroll, it is paramount that you provide us with details of all CIS suffered from April 6th 2022 to April 5th 2023 before April 7th 2023.
By doing so, our team can ensure that the right figures are included in the final submission to Her Majesty’s Revenue and Customs (HMRC) for the year. If you are eligible for a refund, we can request it on your behalf as soon as possible.
If you manage your own payroll and CIS, keep in mind that starting from April 2022, if you submit a construction industry scheme suffered figure via an Employer Payment Summary (EPS) submission, you’ll need to enter your company’s Unique Taxpayer Reference (UTR) into your software.
In regard to the Apprenticeship Levy, it will remain the same at £15,000 per year per employer.
The National Insurance Primary Threshold will be raised to £1,048 per month or £12,570 per year.
Statutory Payment Rates
Statutory Payments’ new standards for the tax year starting on April 2nd 2023 will apply as follows:
- The Statutory Sick Pay will be £109/week and employers won’t be able to recover this amount.
- The specific daily amount that you’re required to pay your employee for each day they’re on sick leave depends on the number of eligible days they are working each week. You can calculate the exact amount using this link (see link https://www.gov.uk/calculate-statutory-sick-pay).
- The rates for paternity pay, shared parental pay, adoption pay and maternity pay for the upcoming period will be £172/week. Note that small employers can recover 100% of this amount, along with an additional 3% compensation rate.
- To be eligible for Statutory Payments, employees must earn at least £172 per week.
Workplace Pensions Re-enrolment
As some of you approach the 3rd or even 6th-year anniversary of the pension stage date, it’s important to note that employers have a legal obligation to assess their employees and determine who needs to be enrolled back into a pension scheme. If you are affected by this, you will receive a notification from your employer.