Reward Strategy

LATEST NEWS

SEARCH

LATEST NEWS

2017-18 – a payroll, pensions and HR checklist

I make no attempt to explain them and do not claim that this captures absolutely everything that is happening. However, the below should form part of a good start-of-year checklist

Twitter LinkedIn

This time of year is always a busy one for UK professionals. However, April 2017 will be the advent of so much change that it has been difficult enough to keep up with it, let alone digest it.

 

Therefore, for my sake as much as anything else, here is a list of some of the 2017/18 changes that you should be aware of. I make no attempt to explain them and do not claim that this captures absolutely everything that is happening. However, the below should form part of a good start-of-year checklist:

 

Tax

• Marriage and other allowance change. These are UK-wide
• Tax code uplifts
• Two UK tax regimes – Scottish Income Tax (SIT) and rest of the UK (rUK)
• Threshold changes
• Basic Earnings Assessment for childcare vouchers to use rUK thresholds

 

National Insurance

• No rate changes
• Threshold changes UK-wide
• Nothing too exciting!

 

Employment Allowance

• No change to £3,000 value
HMRC will be monitoring ‘abuse’ throughout 2017/18 though

 

Student Loans

• Plan 1 and 2 thresholds increased

 

Statutory Payments

SSP rates change effective 06 April
SMP / SAP etc change effective 02 April
• Employment law payments and awards Great Britain effective 06 April – e.g. a week’s pay for redundancy. Northern Ireland is a big question mark as to the effective date of changes to their payments and awards. Look out for announcements from the Department for the Economy (DfE)

 

Apprenticeship Levy

• New ‘tax’ for 2017/18 for eligible employers UK-wide at 0.5% of the employer’s paybill
• Levy Allowance £15,000 per employer for 2017/18

 

Optional Remuneration Arrangements (OpRA – aka salary sacrifice)

• Big changes to benefit and flexible remuneration packages – and last-minute ones as well. Look out for:
• Things that are not affected, e.g. childcare
• Things that have a grandfathering period
• Things that are affected, i.e. everything else!
• Key words
o The trigger point
o The relevant amount
• See Finance Bill 2017 and HMRC guidance

 

National Minimum and Living Wage

• New effective date for National Minimum Wage is 01 April – aligned with National Living Wage
• New rates payable for pay reference periods starting on or after the effective date

 

Off-payroll working

• In Public Sector Bodies (PSBs), as defined in legislation
• Certain people who were off-payroll now have to go on the payroll if the payment is being made on or after 06 April
• They are not employees or workers but their deemed employment payments are included in the value of the employer’s paybill
• Key information
o Income Tax – Clause 1 and Schedule 1 Finance Bill 2017
o National Insurance – The Social Security (Miscellaneous Amendments No. 2) Regulations 2017
o The new Employment Service Status tool
o HMRC guidance
• I have a hunch that this regime may be extended to all employers at some time in the future. In quiet times, it’s probably a good idea to have a browse through all the off-payroll information to make sure you are prepared

 

Gender Pay Gap (GPG) reporting

• For private and voluntary sector employers in Great Britain and public sector England where:
o The ‘relevant employer’ has 250 or more ‘relevant employees’ on the ‘relevant date’ – do some research!
• Be aware that GPG obligations already exist in public sector bodies in the devolved nations (Wales, Northern Ireland and Scotland)
GPG should come to private and voluntary sector employers in Northern Ireland and Regulations were expected in June 2017 (although goodness knows what will happen)

 

Pension

• Public Sector scheme rate amendments (LGPS, TP etc)
• Auto-Enrolment thresholds (QEBS) changes in Great Britain and corresponding values in Northern Irish legislation
• Pension advice allowance introduced
• Employer-arranged pensions advice introduced
• Lifetime ISA introduced (not strictly payroll-related but one to keep an eye out for)
• Monthly Data Collection for Teachers’ Pension mandatory from December 2017

Benefits

• Official rate of interest reduced to 2.5%
• Cars and van changes
• Making good dates aligned (for non-payrolled benefits)

Plenty to be getting on with!

Twitter LinkedIn

You might also like

DWP contacting payroll about changes to employee deductions

The Department for Work and Pensions will be contacting payroll departments who are making child maintenance deductions from employees’ pay to the Child Support Agency (CSA).

National Payroll Week puts sector in the spotlight at Westminster

Monday 4 September marked the start of National Payroll Week, with the theme of ‘Putting payroll in the spotlight’.

Sexual harassment going unreported in large firms

One in eight large UK employers admits knowing sexual harassment has gone unreported in their workplace, according to a YouGov survey.

Low-paid mums and dads penalised over flexible work, study reveals

Asking for family-friendly working patterns leads to getting fewer hours, worse shifts and in some cases losing their jobs, low-paid mums and dads report.

More Stories

Event of the Month

The Rewards

LATEST NEWS STRAIGHT TO YOUR INBOX

Reward Strategy

Did you find our website useful?

Thank you for your input

Thank you for your feedback

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd