POLICY HUB
Statutory neonatal care leave Q: Will statutory neonatal care leave be a day one right for all employees, when it’s introduced for babies born on or after 6 April 2025 and the eligibility criteria are met? A: The right to neonatal care leave is a day one right, which requires no set length of service and mirrors the right to take statutory maternity leave. With statutory neonatal care pay, however, the employee must have 26 continuous weeks of service ending with the relevant week and earnings of at least £125 (the lower earnings limit for tax year 2025/26) per week. This mirrors the entitlement to statutory maternity pay. Late notification of benefits to be payrolled Q: We weren’t informed of a benefit which was supposed to be payrolled in a previous year, so it was missed and wasn’t processed through payroll. Someone received a medical benefit in an earlier tax year, but this wasn’t reported to payroll until the following tax year (in May).
A: When the company has benefits to payroll, but the final FPS has been sent for that year, HMRC states that a business can carry this forward to the first wage payment in the next tax year. In this case, the payroll team wasn’t notified until May, so this would be the first pay date possible within the next year. However, the Class 1A NICs relating to this must be paid by 19 July and cannot be carried forward. Please see the following link for more information around situations impacting payrolled benefits: https://ow.ly/ ipXp50V89Kl. n
appointed part-way through the tax year, a pro-rata annual earnings calculation must be used for the remainder of the tax year. The number of weeks in the pro-rata earnings period are the: l tax week of the appointment l remaining tax weeks in the tax year. Therefore, in your specific example, the director was appointed on 21/12/2024, which falls into tax week 38, so there’s 15 weeks in the pro-rata period of the calculation. The following CA44 guidance link includes the tables you can use to help with the calculations (scroll to page 31): https://ow.ly/PRkU50UYFio.
What happens when the payroll team is notified of a benefit which should have been payrolled in an earlier year?
How do you calculate NICs for directors appointed mid-tax year?
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| Professional in Payroll, Pensions and Reward |
Issue 109 | April 2025
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