Payroll news
Statutory payments 2017–18 THE DEPARTMENT for Work and Pensions (DWP) announced in December 2016 proposed revised amounts for various statutory payments from April 2017. Note that though the DWP has yet to confirm the effective dates, the following reflects the position of most changes occurring on the first Sunday in April or 6 April. ● Statutory sick pay (SSP) – The weekly rate of SSP increases to £89.35 with effect 6 April 2017. To be entitled to SSP for any periods of incapacity for work (PIW) commencing on or after 6 April 2017 (and which do not link to an earlier PIW) employees must have average weekly earnings (AWE) of at least £113. ● Statutory maternity pay (SMP) – The weekly rate of SMP increases to £140.98 with effect Sunday 2 April 2017. To qualify for SMP, the employee must have AWE of at least:
And briefly… ● Welsh income tax – New income tax powers would allow Welsh Government ministers to cut or increase the UK income tax rates by 10p within each tax band, without requirement for a referendum, from April 2019. ● Spring 2017 Budget – The date for the next (and last) spring budget, is 8 March. ● Personal Tax Account (PTA) – Since its launch in December 2015, the PTA (http://bit.ly/2iRB9O4) has been used by more than 7,000,000 customers (e.g. 156,000 people checking or updating their company car details). ● FPS data item 172 – Though shown in the real time information specification for full payment submissions (FPSs) for 2017–18, the serious ill health lump sum indicator is optional only becoming mandatory for reporting such payments in tax year 2018–19. ● Jury service age limit – The age limit has increased from 70 to 75 from 1 December 2016. ● Employer bulletin – issue 63 of this, which was published by HMRC in December 2016, can be found at http://bit.ly/2hDlnrm. ● Childcare – A guide for parents, which is available at http://bit. ly/1m0yD1U, sets out how existing employer-supported childcare (ESC) schemes will remain open to new entrants until April 2018. From April 2018, parents already registered for ESC will be able to continue using ESC as long as their employer continues to offer it.
❍ £113, if the baby is due on or after 16 July 2017 ❍ £112, if the baby is due on or before 15 July 2017.
● Statutory adoption pay (SAP) – The weekly rate of SAP increases to £140.98 with effect Sunday 2 April 2017. To qualify for SAP the employee must have AWE of at least:
❍ £113, if the matching or notification occurs on or after 2 April 2017 ❍ £112, if the matching or notification occurs on or before 1 April 2017.
● Statutory paternity pay (SPP) – The weekly rate of SPP increases to £140.98 with effect Sunday 2 April 2017. To be entitled to SPP the employee must have AWE of at least: ❍ £113, if the baby is due on or after 16 July 2017 (or the adoption matching or notification occurs on or after 2 April 2017) ❍ £112, if the baby is due on or before 15 July 2017 (or if the adoption matching or notification occurs on or before 1 April 2017). ● Statutory shared parental pay (SShPP) – The weekly rate of SShPP increases to £140.98 with effect Sunday 2 April 2017. To be entitled to SShPP the employee must have AWE of at least: ❍ £113, if the baby is due on or after 16 July 2017 (or the adoption matching or notification occurs on or after 2 April 2017) ❍ £112, if the baby is due on or before 15 July 2017 (or if the adoption matching or notification occurs on or before 1 April 2017). If the employee’s maternity pay period, adoption pay period, shared parental leave or paternity pay period started on a day other than a Sunday, the new weekly rate of SMP, SAP, SPP or SShPP does not apply until the beginning of the first complete SMP-, SAP-, SPP- or SShPP-week following Sunday 2 April. Confirmation is expected that employers will continue to be able to recover 92% of SMP, SAP, SPP and SShPP and that ‘small’ employers will be able to recover 100% of SMP, SPP, SAP and SShPP plus a further 3% as ‘compensation’ for the employer (secondary) National Insurance contributions incurred.
Diary dates Automatic enrolment staging date for employers with fewer than thirty employees with the last two characters in their PAYE reference number: 70–83, X1–X9, Y1–Y9, XA–XZ, YA–YZ
1 February
Filing date for the form P46(Car) for the quarter to 5 January
2 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
19 February
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 Automatic enrolment staging date for employers with fewer than thirty employees with the last two characters in their PAYE reference number: P1–P9, PA–PZ
22 February
1 March
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 16
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