PAYROLL – STAYING LEGAL

If you employ at least one person, it is important that you keep up to date with PAYE changes that may affect you and your employees.

Personal Tax Account

This is a new online service for your employees on any device – PC, tablet or smartphone. It is really secure, and takes just a few minutes to get going. Those doing it for the first time will need the following items to hand:

1. Their National Insurance Number (NINO)
2. Either a recent payslip or P60 (a passport can be used if you don’t have these)
3. A phone, to receive a security access code.

There are three simple steps for them to get started:

1. Go to http://www.gov.uk/personal-tax-account and click ‘start now’
2. Set up a Government Gateway account (if not already held) by answering a few simple questions. This is where their payslip or P60 are needed. A security access code will be sent to their phone
3. Enter the access code on their phone when prompted, which will take them straight to their account.

Workplace pensions

All employers have automatic enrolment pension duties. As an employer, you are legally required to provide a workplace pension for certain staff, which you also pay into. This is called automatic enrolment – it is automatic for the staff as they don’t need to do anything, but employers have legal duties that they must comply with. If you employ one or more members of staff, you need to assess them to see if they need to be put into an automatic enrolment pension. Find out your duties by going to http://www.tpr.gov.uk/autoenrol and using the online tool. You should do this even if you don’t believe you have any duties, as by law you will still have to perform certain tasks even if you don’t have any staff who need to be put into a pension.

National Minimum and National Living Wage increases

Employers need to be aware that the National Minimum and National Living Wage were increased on 1 April 2018. The hourly minimum wage a worker is entitled to depends on their age and whether they are an apprentice.

The National Living Wage for those aged 25 and over is currently £7.83 per hour.

The National Minimum Wage rates are currently:

• for 21 to 24 year olds – £7.38
• for 18 to 20 year olds – £5.90
• for 16 to 17 year olds – £4.20
• for apprentices aged 16 to 18 and those aged 19 or over if they are in their first year – £3.70.

It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records.

[Correct as at 24 June 2018]