Install HMRC update to ensure correct NI deductions
The primary Class 1 NI threshold will increase on 6 July. How can employers using HMRC's Basic PAYE Tools ensure the change is reflected in their processing?
The Spring Statement included the announcement that the government was increasing the primary Class 1 NI threshold to £12,570. However, the change is convoluted as it will only take place from 6 July, meaning that the first three months of the payroll year had a lower (£9,880) threshold in place. We are just over a week away from the change date. If the employer uses third-party software to operater PAYE each month, their provider should have given them information on how to update the software to enact the increase. However, those that use HMRC’s Basic PAYE Tools (suitable for small employers, but not accountants) will need to remember to download the updated version on or after 6 July. The correct version will be 22.1 and will be available here.
Related Topics
-
Uber loses VAT margin scheme appeal
The Court of Appeal has ruled that Uber cannot use the Tour Operators Margin Scheme (TOMS) when accounting for VAT on its ride-hailing services. The decision could have significant implications for businesses that act as intermediaries when supplying services to consumers. What was the dispute about?
-
Investment bond - undercover tax trap?
Inheritance tax is a hot topic but most couples only need to be concerned if they are worth more than £1m. What you don’t hear about is the income tax charge on investment bonds that’s payable on death. Can you reduce the tax bill before it’s too late?
-
When are staff discounts tax efficient?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.