07 Apr Tax Year Changes for Payroll in April 2017
Tax Changes – There are several things to think about in the world of payroll now we have made it to April 2017.
Just to kick off with, the electronic deadline for April 2017 is the 22nd which falls on a weekend, so you need to ensure you have sent your payment on Friday 21st, penalties apply for failing to make returns and payments on time.
The National Living and National Minimum wage has increased. Click here to read our previous blog with the new rates.
The Apprenticeship levy comes in to effect in April 2017, this will only really impact on large employers.
There will as always be a change in tax codes with the new personal allowance. Tax code changes should have been received by the end of March. The new emergency tax code will be 1150L.
The general uplifts for codes are as follows:
- add 50 to any tax code ending in L, for example 1100L becomes 1150L
- add 55 to any tax code ending in M
- add 45 to any tax code ending in N
Tax free childcare roll out from 28th April 2017
The new government scheme, Tax Free Childcare, to help working parents with the cost of childcare will be launched on 28th April 2017.
To qualify parents must meet the minimum income requirement. The scheme is available for children up to the age of 12. We will be posting a blog on this particular scheme shortly.
Employment Allowance Restriction
From 6 April 2016, limited companies where the sole director is the only employee paid earnings above the Secondary Threshold (ST) for Class 1 NICs of £156 a week (for 2016/17), are no longer able to claim the Employment Allowance of up to £3,000.
The company is no longer eligible for the allowance if:
- only one employee (or director) in the limited company is paid above the ST
- that employee is a director of the limited company.
Companies with several employees, where the director is the only employee paid above the ST, are no longer eligible for the Employment Allowance. For more details on the eligibility for Employment Allowance contact us or click on the HMRC link here.
Reporting Expenses & Benefits
Employers also need to report details of any expenses, which fall outside the exemption introduced from 6 April 2016, and benefits provided to employees during the tax year ending 5 April 2017.
Employers who are payrolling or not payrolling expenses need to complete the relevant P11D and provide copies of the supporting documents to HMRC and the employees. If the employer has a reminder to send a P11D but they did not provide any benefits you can either submit a nil return or complete the 2016/17 Employer – No Return of Class 1A form.
As a last note – if you spot an error on you FPS – final Full Payment Submission – these can be corrected by sending another FPS up to the 19th April.
If you have any questions or queries or would like to just hand over your business payroll function to someone else then give us a call. We just love the evolving and changing world of payroll and have all the necessary skills and experience to complete your payroll submissions leaving you to focus on managing your business. Contact us now on 013769 646943 or email firstname.lastname@example.org.