Post Graduate Student Loans (PGL) will begin to come into repayment from April 2019 and guidance for software developers has been updated that seeks to make clear what steps should be taken in the event that the protected earnings figure is at risk of being breached to ensure that the software and the employer knows which repayment will take priority in this event. In the event of a priority attachment of earnings order with protected earnings is also in operation, the loan deductions are restricted so that the remaining pay cannot be reduced below the protected earnings amount. From April 2019 where both a Student Loan (Plan 1 or Plan 2) and a Postgraduate Loan are in operation, loan deductions must be allocated first to the Postgraduate Loan as it has a higher rate of interest. The New Starter Checklist has been updated and issued to software developers to enable them to update their software products as required. It remains the responsibility of the employee to notify the employer which plan types are in operation. The P45 will not be adapted to take account of the differing plan types and so both the P45 (where provided) and the new starter checklist should be used when taking on a new employee.
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Postgraduate Loans - calculation guidance and 2019-20 form P60 23 November 2018
HMRC’s Software Developer Support Team (SDST) has provided a revised 2019-20 form P60.
The 2019-20 form P60 has been revised to include a box for Postgraduate Loan (PGL) deductions.
Developer guidance on calculating Student Loan deductions has also been updated to include PGLs. The latest guidance is now available at GOV.UK.
This information has been provided for payroll software developers, however payroll practitioners and employers may also find it useful.
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Statutory payments: Small Employers Relief threshold and recovery rates 4 December 2018
Subject to Parliamentary approval, the Small Employers Relief threshold (£45,000) and recovery rate (3%) will remain unchanged for 2019-20, as will the standard recovery rate (92%).
Our news item at the end of November detailed the Department for Work and Pensions (DWP) proposed statutory rates which will apply from April 2019.
In summary, the proposed rate for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay and Statutory Shared Parental Pay will be £148.68, and the Statutory Sick Pay weekly rate will be £94.25.
HMRC’s Software Developers Support Team (SDST) informed us that the Small Employers Relief threshold (£45,000) and recovery rate (3%) remain unchanged for 2019-20, as does the standard recovery rate (92%).
These figures are all still subject to parliamentary approval.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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