The new year often brings change in legislation and tax rates. Keeping on track with your Payroll by staying up to date with these future changes is a great way to ensure that you are running the financial aspects of your business correctly. HMRC has highlighted a number of areas that are going to see changes which we have outlined for you in this helpful list below.
January payroll planning
HMRC has highlighted that January’s electronic payment deadline falls on a Sunday (22nd). This means that unless a faster payment can be facilitated, funds must clear HMRC’s account on or before Friday 20 January. Failure to make payments on time may attract interest as well as a penalty.
HMRC confirmed statutory changes
The Government has published new statutory rates for the tax year 2023/24:
- National living wage (for those aged 23 and over) will increase to £10.42 from 1 April
- National minimum wage for 21 to 22 year olds will become £10.18
- National minimum wage for 18 to 20 year olds will become £7.49
- National minimum wage for those under 18 will become £5.28
- National minimum wage for an apprentice will become £5.28
- Statutory maternity, paternity, adoption, shared parental and parental bereavement pay will increase to £172.48, all effective from the first Sunday in April, which is the 2 April 2023.
- Maternity allowance will increase from £156.66 to £172.48.
Other statutory payments
- Statutory sick pay will increase from £99.35 to £109.40 from 6 April 2023.
- The statutory cap on a weeks’ pay for calculating redundancy and calculating the basic award will be announced in March 2023, and to become effect on 6 April 2023.
Pensions triple lock
- The state pension rate will rise with the September inflation figure of 10.1%, which means that the state pension will become £203.85 for the tax year 2023/24.
Company car tax rates
New company car tax rates have been set for tax years 6 April 2025, 2026, and 2027 and will be as follows:
For vehicles with zero emissions and ultra-low emissions emitting less than 75g of CO2 per kilometre:
- Increase by 1% for the tax year 2025/26.
- Increase by a further 1% for the tax year 2026/27.
- Increase by a further 1% but up to a maximum appropriate percentage of 5% for electric cars and 21% for ultra-low emission cars.
All other vehicle bands will be increased by 1% for the 2025/26 tax year, up to a maximum appropriate percentage of 37%, which will then be frozen for tax years 2026/27 and 2027/28.
Payroll expenses and benefits
Employers can now register to payroll benefits from 6 April 2023 and will no longer need to submit a P11D for each employee, making the process environmentally friendly and more efficient. can do so via the Government website.
Furthermore, employers who currently have an informal agreement in place with the HMRC for payrolling benefits for the tax year 2022/23, they can continue to submit P11D’s. However, the HMRC are recommending these agreements are formalised because they may no longer ace new informal arrangements.
We are here to help
If you require any further support with your business including your HR, Payroll or Health and Safety, please contact us and speak to a member of the team.