MY CIPP
PAYROLL news
Changes to statutory sick pay (SSP) announced THE GOVERNMENT previously consulted on some proposed changes to SSP as part of its ‘Plan to Make Work Pay’ . We’ve now had a consultation response, which can be read here: https://ow.ly/ uKg850VcBnm. The main changes announced were that:
l the waiting days will be removed, so that SSP will be available from day one of sickness absence l there’ll no longer be the need to earn at the lower earnings limit (LEL) or above to qualify for SSP. The recent consultation queried what percentage of earnings should be paid to those earning below the LEL, as opposed to the flat rate of SSP. It’s been confirmed this will be set at 80%, and the government states this, “strikes the right balance between providing financial security to employees who need it, whilst limiting additional costs to businesses.” Concerns were voiced that some lower earners could see their SSP rate reduce under the new rules, and the government addressed this by saying: “The government notes concerns as to a small number of employees who earn just above the Lower Earnings Limit and may receive less SSP than they would under the current system. However, by abolishing the Waiting Period any potential loss is offset for most short-term absences.” At the time of writing, we don’t have much further detail around the changes, but watch this space as we will, of course, keep you updated as soon as we hear more. Company size threshold uplift: April 2025 THE DEPARTMENT for Business and Trade (DBT) has announced that the company size thresholds are to be uplifted by 50% from April 2025, with the exception of the number of employees test. The new thresholds will be as follows:
Micro
Small
Medium
Large
Annual turnover
1m
15m
54m
Over 54m
Balance sheet total
500k
7.5m
27m
Over 27m
Average no. of employees
10
50
250
Over 250
Of note for payroll professionals is how this will affect small companies impacted by the threshold changes in relation to off-payroll working compliance. Explanatory notes confirm: “Size classification under the Companies Act 2006 also impacts the application of the off-payroll working tax rules, under Part 2 of the Income Tax (Earnings and Pensions) Act 20036, commonly referred to as IR35. These rules ensure that workers pay broadly the same taxes as direct employees, regardless of the structure they work through. The size of the business engaged with the worker determines which party is responsible for ensuring compliance with the rules. If the business is small, the worker’s intermediary is responsible for determining whether the rules apply. Otherwise, the business must operate the rules.” This will apply to companies based on the last full tax year’s data, so companies may wish to assess if they’re still the ones responsible for applying the off-payroll working rules. Please see the following links for further information:
l https://ow.ly/kjWB50VcC7j l https://ow.ly/sn1e50VcC8b l https://ow.ly/7Ull50VcC93.
Diary dates
Last day of tax month 1
5 May 6 May
First day of tax month 2
Last day for submitting a real time information employer payment summary to apply to tax month 12 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 April (This is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
22 April
Last day of tax month 2 First day of tax month 3
5 June
6 June
| Professional in Payroll, Pensions and Reward | April 2025 | Issue 109 10
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