HR Main Legislative Changes 2018-19

In accordance with guidance from The Pensions Regulator, schemes operating on a minimum contribution basis will need to increase auto enrolment contributions for both employee and employer from 6th April 2018.

Posted 09/03/2018

DATES TO REMEMBER

6th April - New tax year commences
16th April - PSC begins to generate P60s
31st May - Statutory deadline for issuing P60s to employees
6th July - Statutory deadline for P11Ds
19th July - Payment of Class 1A NIC due

Automatic Enrolment Pension Schemes

The majority of auto enrolment schemes affected are those where the employee is currently contributing 1% or (0.80% net) and the employer 1%. These schemes will increase to 3% employee (or 2.4% net) and 2% employer contributions from 6th April 2018.

Payments in Lieu of Notice

From 6th April 2018 all payments in lieu of notice for leaving employees (PILON) will be treated as taxable and NIC-able. Previously, non-contractual PILONs could be made free from Tax and NIC and such non-contractual payments are now aligned with the contractual version.

Employment Allowance

The Employment Allowance (EA) reclaim continues into 2018/19 at the rate of £3,000 p/a. Notification of the reclaim to HMRC is via RTI and PSC will continue to carry out this process on client's behalf.

Apprenticeship Levy

The Apprenticeship Levy introduced in 2017/18 continues into 2018/19 on the same basis and will affect all employers with an annual pay bill of 3M or greater.