Policy News Journal - 2017-18

Payroll rates and thresholds for 2018-19 5 December 2017

Following the publication of the Finance Bill, HMRC’s Software Developers Support Team (SDST) has provided the rates and thresholds for the 2018-19 tax year.

Personal Allowance: 11,850

Standard tax code: 1185L

Higher rate threshold (rUK): 46,350

Income Tax rates (rUK): Basic rate 20% 1 – 34,500 Higher rate 40% 34,501 – 150,000 Additional rate 45% 150,001 and above

Tax code uplifts: • Suffix L: 11500 to 11850 = 350 increase, therefore uplift 35 • Suffix M: 12650 to 13035 = 385 increase, therefore uplift 3 9 • Suffix N: 10350 to 10665 = 315 increase, therefore uplift 31

Class 1 NICs rates and earnings limits: See attached table

National Minimum Wage (NMW) and National Living Wage (NLW) rates from 1 April 2018: Aged 25 and above (NLW rate) £7.83 Aged 21 to 24 inclusive £7.38 Aged 18 to 20 inclusive £5.90 Aged under 18 (above compulsory school leaving age) £4.20 Apprentices aged under 19 £3.70 Apprentices aged 19 and over (first year of apprenticeship) £3.70

Student Loan thresholds: Plan Type 1 £18,330 Plan Type 2 £25,000

Employment Allowance: £3,000

Apprenticeship Levy: Allowance £15,000 Rate 0.5%

Follow the link below for NI rates and earnings limits:

Class 1 NICs rates for 2018-19

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Real Time Information programme - post implementation review 8 December 2017

HMRC has published its post implementation review of RTI which addresses the questions of whether the programme achieved what it set out to do, how RTI is performing more than three years after it started and what needs to be done to improve performance and make best use of this strategic asset for government.

The Real Time Information (RTI) programme implemented the biggest change to Pay As You Earn (PAYE) since 1944. This post implementation review addresses the following key questions:

The Chartered Institute of Payroll Professionals

Policy News Journal

cipp.org.uk

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