Belt up, it’s a rollercoaster year for employers and agents, says Kate Upcraft.
While we’re in the thick of self assessment returns at the moment the temptation is to think “when 1 February comes I can breathe a sigh of relief”. 2016, however, is shaping up to being one of the most challenging for a number of years.
Here are the initiatives and new legislation planned for the next 12 months:
What? |
When? |
How? |
New rules on gender pay reporting for employers with 250+ employees |
Guidance in January 2016? Regulations must be laid by 26 March 2016, implementation date tbc |
Payroll and HR data will be needed to establish the overall gender pay gap and the bonus gender pay gap |
National Living Wage |
Pay periods that fall on or after 1 April 2016 |
Rate increases to £7.20 per hour for those aged 25 and over |
Amended new starter declaration |
6 April 2016 |
New questions on student loan plan type as two thresholds for payroll deductions for the first time in 2016/17 |
Tax |
1. Universal personal allowance of £11,000 – no age-related allowances 2. Higher-rate thresholds goes to £43,000 3. Emergency code 1100L |
|
Scottish Rate of Income Tax (SRIT) |
Even though the overall rate is the same as the rest of the UK there are significant operational and payroll software changes to accommodate the introduction of the SRIT, plus two PSAs will be needed for 206/17 if you provide benefits to both Scottish and rUK taxpayers |
|
Pension tax relief |
Lifetime Allowance reduces to £1m (new round of protection) annual allowance tapered to £10,000 from £40,000 for adjusted net income over £150,000 |
|
Restructuring of NICs |
1.The end of contracting-out (tables letter D and associated letters abolished) 2.Table letter H introduced for apprentices aged under 25 3. UEL £827 p.w. all other rates and thresholds remain as 15/16 |
|
Employment allowance increased but eligibility restricted |
Increases to £3,000 but not available to single director businesses |
|
What? |
How? |
|
Company cars and vans |
1. 2% increase on each band to maximum of 37%, diesel supplement retained 2. fuel scale charge increases to £22,200 for cars and £598 for vans 3. van benefit £3,170, electric vans charged at £1,268 |
|
Statutory payments |
No change to last years rates |
|
CIS |
1. Online returns mandatory 2. CIS compliance will be enforced by generic notification messages like RTI |
Court Orders |
6 April 2016 |
1. Scottish orders: thresholds uprated 2. Direct Earnings Attachments: two rates of deduction for first time |
Digitisation |
TBC |
1. Agent Online Service 2. Personal Tax Accounts 3. Your tax Account for business |
What? |
When? |
How? |
Voluntary payrolling |
6 April 2016 |
All benefits apart from loans, living accommodation and vouchers can be taxed through the payroll |
P9D |
Abolished – carve out for carers and ministers of religion to protect their position |
|
Dispensations |
Abolished, employers self dispense from reporting business expenses on the P11D |
|
Trivial benefits |
£50 incl. VAT can be provided as a benefit for general welfare/celebration reasons, not in recognition of performance. £300 annual cap for close companies |
|
Single tier Pension |
Those reaching State Pension Age on, or after, 6 April 2016 |
£155.65 p.w. those with SERPS/S2P may get more, those with contracted-out service less |
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Kate is a technical writer, editor and lecturer on all aspects of employing people - primarily payroll and HR matters.