GLOBAL PAYROLL MAGAZINE
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There are subtle differences between nations on when but common aspects are the focus. Whether that is St Nicholas Day celebrated on the 5th, 6th or even 19th December depending on where we live, or even Christmas celebrations with traditions applying to the 8th, 24th, 25th December, or even 7th and 8th January. Of course, in the UK, Scotland has more of a tradition of celebrating New Year with Hogmanay as the last day of the old year and celebration of the New Year in the ‘Scottish manner’. Although for many the 1st January is the start of the new tax year, for the UK it is not. However, the tradition of New Year’s Resolutions is something to think about. Where traditionally resolutions are about stopping smoking, exercising more or giving another excess up, there are some areas that the UK Payroll Professional may want to start considering. Now is the time of year when we celebrate with our national festivals.
With the UK Government Autumn Budget 2024 presented on 30th October 2024, several changes and proposals were announced that will be applicable for the UK New Tax Year starting in 2025, and some with confirmation for 2026. So, plenty of time to not worry about them. Or should we start to set some New Year’s resolutions and plan on thinking about changes required in preparation? It may not be as easy as we may think. Employer National Insurance hike A high financial impact change
is the significant increase to employers’ secondary NI
contributions and the starting point secondary threshold also dropping, the double whammy.
Payroll can play a key role in readying business planning.
Being Smart with Pensions Salary Sacrifice One means to reduce the employer liability is expanding salary sacrifice. Although hints were high about the government restricting employment pension scheme entitlements and a potential for employers facing a National Insurance charge on their contributions, these didn’t happen and there is potential for taking advantage (until some future point when they are changed). So a key area that may be worth exploring is being smart about pensions and the introduction of pension salary sacrifice. Whereas National
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