6 April is the start of the new tax year and the date when changes to tax rates and allowances usually come into effect. The start of the 2020-21 tax year brings changes to the Employment Allowance, the National Minimum Wage and statutory payments.
We have outlined the key changes below and you can find more detailed information including income tax and National Insurance rates here.
If we are your Payroll Services provider, we will automatically make the changes that apply to your Payroll to ensure your staff are paid correctly with minimum disruption.
The employment allowance was introduced in 2014 to help companies reduce their employer class 1 National Insurance (NI) contributions.
The employment allowance will change to £4,000 for the 2020-2021 tax year.
From 6 April 2020 you can only claim EA if your total (secondary) Class 1 National Insurance contributions (NICs) liability is below £100,000 in the tax year before the year of claim.
National Minimum Wage
There are different National Minimum Wage rates dependent on age and employment status (e.g. over 25s, Apprentices) which will increase from 1 April 2020.
It is the responsibility of the employer to ensure employees are paid in line with the National Minimum Wage rates. If we are your payroll services provider, where we hold details of hours worked and hourly rates, we will check to ensure the legal minimums are being met.
Please advise us of any changes to your employees’ hourly rates or salaries in advance of your first pay period following 6 April.
Click here to see the rates for statutory Maternity Pay, Sick Pay, Paternity Pay and Adoption Pay from 6 April 2020.
Need help managing your Payroll?
Outsource your Payroll to RfM Accountants and we’ll ensure your staff are paid accurately, on time and with the minimum of fuss.
Contact your usual RfM office or email email@example.com to request a quote.