PAYROLL news
CHANGES TO statutory paternity pay and leave are due to take effect from 6 April 2024. Amendments to existing entitlements will introduce greater flexibility for fathers to create a more equal system of parental leave and pay, to promote gender equality. The changes come following a consultation which was held in 2019, Good work plan: proposals to support families, which can be found here: https:// ow.ly/5VLl50Py0Jo. They will apply in Great Britain, and are as follows: l notice requirements will be changed so they’re more proportionate to the amount of time taken off l an employed father will be able to take paternity leave in two non-consecutive periods of one week or a two-week block within 52 weeks of the birth of the child / placement for adoption l payroll software, basic pay as you earn (PAYE) tools and the online paternity leave calculator on GOV.UK will be updated so an employer can calculate the pay for paternity leave taken in non-consecutive weeks. HM Revenue and Customs (HMRC) is estimating that updated guidance will be available in line with the changes to legislation by 8 March 2024. Statutory paternity pay and leave changes
Investment zones employer National Insurance contributions (NICs) relief FURTHER INFORMATION regarding the reporting of secondary (employer) NICs for businesses located in investment zone tax sites has been published by HMRC. A reduction in the rate of employer NICs payable will be available for investment zone tax site-based businesses, which are located within a prescribed geographic area, for employees working in that area only (where the conditions to claim the relief are met). A zero-secondary rate of employer NICs will apply from employees’ earnings above the secondary threshold (£9,100 per year) up to, and including, an upper secondary threshold (£25,000 per year) equivalent to the freeport upper
secondary threshold. The balance of earnings above this upper secondary threshold will be charged at 13.8%. The relief will be available from the date the first investment zone tax site is operational. New NIC category letters Four new investment zone NIC category letters will be available from 6 April 2024, to implement the NIC relief: ● N – (standard category letter) ● E – (married women and widows entitled to pay reduced NICs) ● K – (employees over the state pension age) ● D – (employees who can defer paying 12% NICs and pay only 2% because they are already paying it in another job). If an investment zone tax site becomes operational before 6 April 2024, employers will be able to claim the relief using the existing freeport NIC category letters instead. This is a temporary arrangement until the investment zone NIC category letters become available. All investment zone employer NICs relief claims made from 6 April 2024 onwards (including if the employer has made a claim in relation to the employee prior to 6 April 2024) must be made using the NIC category letters N, E, K or D.
Eligibility To be eligible, employers based in Great Britain must have business premises in an investment zone tax site. Additionally, employees must: ● be new hires with employment start dates on or after 6 April 2022 and before the applicable sunset date ● not have worked for that employer (or an employer connected to the employer) in the previous 24 months ● spend a minimum 60% of their working time in the investment zone tax site (at the start of the qualifying period, the employer must reasonably expect this to be the case). Eligibility to claim will expire 36 months from the employee’s start date of their employment and there’s no limit on the number of employees an employer can claim for. Details supporting investment zone employers based in Northern Ireland will be released as soon as they’re available.
Diary dates
National Payroll Week! Last day of tax month 5 First day of tax month 6
4-8 September 5 September 6 September
Last day for submitting a real time information employer payment summary to apply to tax month 5 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 September
22 September
5 October 6 October
Last day of tax month 6 Last day of tax month 7
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 10
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