Payroll changes 2014-15 are the usual updates to tax codes, tax rates and NIC rates. Good news includes a delay in the implementation of late filing penalties under the RTI system, and a £2,000 reduction to employer’s NIC. On the downside, employers will no longer be able to reclaim SSP paid to employees.
RTI LATE FILING PENALTIES
The penalties for late filing of the FPS files which were due to commence April 2014 have been postponed until October 2014.
The FPS files are the Real Time Information (RTI) reports sent each pay period and are due on or before the pay date. The fines are per late FPS and depend upon the number of staff you have:
Staff Monthly Penalty
- 1 to 9 employees £100
- 10 to 49 employees £200
- 50 to 249 employees £300
- 250 or more employees £400
The penalty notices will only be sent out quarterly ,so the bill could be quite high when you receive it. Payment is due within 30 days of the notice.
Where an FPS is late for more than 3 months and the information is not included on a later submission a further charge is made – 5% of the Tax/NICs which should have been on the submission.
SSP RECLAIM ABOLISHED
From April 2014 the reclaim of SSP will be abolished. You still need to keep a record of SSP paid in the normal way but there will be no reclaims at all. Reclaims for SMP, SPP and SAP remain the same.
TAX RATES 2014-15
The new standard tax code is 1000L
Tax Bands:
- 20% £1 to £31,865
- 40% £31,866 to £150,000
- 45% £150,001 and above
NIC Thresholds 2014-15:
Payments start from the primary threshold: weekly pay of £153, monthly £663, annual £7,956
Employees deductions are 12% on amounts above the primary threshold, up to £805 weekly/ £3,489 monthly then 2% on all other earnings
Employers liability: 13.8% on all earnings above the secondary threshold (values are the same as the primary threshold mentioned above).
The threshold for statutory payments is £111 per week.
SSP rate £87.55 per week
SMP/SPP/SAP standard rate £138.18
Student loans are recovered at 9% on earnings above: weekly £325.19 , monthly £1,409.16 or annual £16,910.00.
£2,000 NIC ALLOWANCE
HMRC are introducing a £2,000 Employers Allowance to be offset against your Employer’s NIC. Most employers are eligible for this and we will be taking it into account on your monthly PAYE Summaries.
There are a small number of employers who are not eligible and you can check your entitlement by logging on to the following website:
https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics