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Payroll: Are You Ready For The 20/21 Tax Year?

By Lucy Harvey 20/02/20 at 11:57 am

If you’re an employer then you will be aware that the new tax year is fast approaching. From April 6th 2020 there are new changes in the legislation that you must be aware of and action appropriately to continue meeting your employer responsibilities. Are you ready?

National Minimum Wage and National Living Wage:

Every April the national minimum wage/ national living wage increases, you must ensure that you apply these changes from the April pay run to all employees who this applies too. HMRC will issue heavy fines for non-implication of this of up to £20,000 per employee – so it is important to ensure you are paying your staff correctly.

Remember that even though your staff may not be entitled to the increased rate at the beginning of April the rates apply for the whole 20/21 tax year.

Off- Payroll Working:

Are you a PSC that has contracts with medium or large businesses or are you a medium or large business that has contracts with a PSC – if yes, the new rules and reporting requirements may apply to you from 6th April 2020.

Parental Bereavement Leave and Pay:

New from April 2020 this will be a statutory entitlement to those parents who lose a child or suffer a still birth. This will be a day-one employment right and applies from 6th April 2020.

Employment Allowance Eligibility:

HMRC have introduced more restrictions on whether you can claim the Employment Allowance depending on your national insurance bill from the previous tax year. Will you remain Eligible?

Automatic Enrolment:

The automatic enrolment percentage rates will remain at 5% for the employee and 3% for the employer. Don’t forget if you are a first time employer you will have automatic enrolment Duties – Are you compliant?

Statutory Payments and NI Threshold Rates:

Every April the government increases the Personal Allowance, NI thresholds and Statutory Payment amounts – ensure you are paying the new rates as of April 2020

Holiday Pay Reference Period:

Reference period for average weekly pay period increases from 12 – 52 weeks.

Written Statements:

All workers are entitled to receive a written statement of the terms and conditions of their new employment on their first day of their new job

Daunted by the year ahead? Think of outsourcing your payroll requirements and all this will be taken care of. We’re offering new clients a free set up and more – Give us a call!

The data for this tax year hasn’t yet been finalised and the information above is still being updated. Join our mailing list to be notified when it’s finalised.

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