Keeping on top of Payroll Changes for 2016/2017

Every year, HMRC introduces a wave of new rules for Payroll and it can be quite a task to keep up with them all, especially if you run a small business and don’t have a separate, dedicated department to deal with all things payroll. As an outsourced Payroll Services provider, this is where we come in. We keep up with HMRC’s payroll changes, so you can concentrate on running your business.

Some of the Payroll Changes for 2016/17

Here’s just a few of the payroll changes that have already taken place or are planned to take place in this financial year 2016/2017. How many of them were you aware of?

Companies can claim employment allowance if you are paying class 1 national insurance, which allows the company £3,000 worth of employer’s National Insurance Contributions that do not have to be paid. There are a few, albeit rare circumstances, where a company might not be eligible. Talk to us if you are uncertain.

However, a new rule has been introduced this year for companies whose only employee is a director. These companies are excluded from this allowance. There are other exclusions too.

  • Apprentices under the age of 25.  

There are more apprentices now than for many years. Starting from 6 April 2016, if your company employs apprentices aged under 25, you may no longer need to pay employer Class 1 secondary National Insurance Contributions for them. Once again, there are certain exclusions, that are well worth checking with HMRC. Or us.

  • Micro Employer Easement has Ended

From 6th April 2016 this relief for micro employers ended. Employers in this category, like all other businesses, will have to submit their RTI on or before their payslip date. This means that if you pay your employees weekly you will have to submit to the revenue weekly, not monthly. For Payroll purposes, HMRC defines micro businesses as those employing 9 or fewer people. Given that 76% of UK businesses are owned and operated by a single person, then millions of micro businesses will be affected by this change.

Contact us for Help With Your Payroll

If you are finding the burden of keeping up with HMRC when it comes to your company’s payroll, why not contact us or call us on 0121 422 0550 for an initial chat?

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