PAYROLL news
Scottish Budget 2024/25 announced – tax changes THE SCOTTISH government announced several changes in the Scottish budget back in December. There are some big changes coming to Scottish taxes, and imminently. The starter, intermediate and higher rates remain unchanged from last year. However, the top rate is going to be increased by 1p to 48%, for those who earn over £125,140 per year.
A new band is also being introduced, known as the advanced rate. This will apply to an individual’s earnings from £62,430 (£75,000 when factoring in the personal allowance) up to £125,140 in taxable income per year. The basic and intermediate bands will increase by inflationary figures and will be applicable to those earning from £14,877 and from
£26,562 respectively. The starting point of the higher and top bands will remain the same. The changes will take effect from 6 April 2024, and you can find a handy table below:
Earnings banding from
Earnings banding to
Tax payable
Personal allowance
£0
£12,570
0%
Starter
£12,571
£14,876
19%
Basic
£14,877
£26,561
20%
Intermediate
£26,562
£43,662
21%
Higher
£43,663
£75,000
42%
Advanced
£75,001
£125,140
45%
Top
Above £125,140
Unlimited
48%
Further information on the Scottish budget is available here: https://ow.ly/q2W250Qn5Of.WS
Draft Welsh budget 2024/25: no changes to WRIT ON THE same day the Scottish government was held, the Welsh government also delivered its draft budget announcement. The Welsh government has the power to amend the Welsh rates of income tax (WRIT) by certain amounts. The UK rates are reduced by 10p for each bracket and the Welsh government then has the power to set the remainder. They’re all currently set to10p, remaining at parity with England and Northern Ireland. It’s been confirmed that the rates will continue to be set at 10p. To illustrate how the WRIT works, the graph to the right has been provided in the budget narrative document. The draft Welsh budget document can be accessed here: https://ow.ly/FOCr50Qn6oh.
Flexible working – a day one right confirmed to commence 6 April 2024 A STATUTORY instrument has been laid to ensure that the amendments to flexible working regulations can come into effect from 6 April 2024. This means that any request made on or after 6 April 2024 will be subject to the new rules and can be made from day one of employment. The statutory instrument can be found here: https://ow.ly/FoA850Qn6A5.
Diary dates
National Apprenticeship Week
5 – 11 February
5 February 6 February
Last day of tax month 10 First day of tax month 11
Last day for submitting a real time information employer payment summary to apply to tax month 10 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 February
22 February
5 March 6 March
Last day of tax month 11 First day of tax month 12
| Professional in Payroll, Pensions and Reward | February 2024 | Issue 97 10
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