HMRC's new tax year starts only on 6th April of every year. However the option to start the new tax year in our service is available after 31st March. Our system will be automatically updated and fully compliant with the legislative changes from the start of the new tax year

When moving to new tax year 2018-19, please take note of the following changes below:-
1) Global Tax Code uplifted to 1185L
2) Income Tax Rates and Bandwidth
3) Auto Enrolment Minimum Contribution Rates
4) Statutory Payments Rates
5) Student Loan Rate
6) Reporting Payrolled Car Benefit

1) Global Tax Code uplifted to 1185L
HMRC have announced a general 'uplift' of all tax codes with 'L' suffix by 35. The employee with tax code 1150L in 2017-18 will have their tax code uplifted to 1185L from 6 April 2018.
Tax Codes
Emergency Tax Code 1185L
L Suffix Uplift 35
M Suffix Uplift 39
N Suffix Uplift 31
Click here for more information.


2) Income Tax Rates and Bandwidth
Employee Personal allowance increased from £11,500 to £11,850 for the tax year 2018-19. The threshold for PAYE is £988 per month. Below are the income tax rates and bandwidth for UK and Scotland that will come into effect from 6th April 2018

UK Rate of Income Tax:
Table below shows the changes to UK rate of income tax bandwidths from 6 April 2018.
UK Rate % Bandwidth
Basic Rate 20% £1 to £34,500
Higher Rate 40% £34,501 to £150,000
Additional Rate 45% £150,001 and above

Scottish Rate of Income Tax:
From 6 April 2018 onward, Scottish tax payers will be subjected to pay tax based on the new Scottish bandwidths. Our system will be automatically updated with the new income tax band changes from the start of the new tax year. Table below shows the changes to Scottish rate of income tax bandwidths from 6 April 2018.
UK Rate % Bandwidth
Starter Rate 19% £1 to £2,000
Basic Rate 20% £2,001 to £12,150
Intermediate Rate 21% £12,151 to £31,580
Higher Rate 41% £31,581 to £150,000
Top Rate 46% £150,001 and above
Click here for more information.


3) Auto Enrolment Minimum Contribution Rates
From 6th April 2018, the minimum contribution rates for auto enrolment pension will increase. Our system will automatically update the minimum percentage contribution rates to meet the new increased rates for both employee and employer from the day(6th April 2018) the new rates become effective.

Date Employer Minimum contribution Employee Minimum contribution Total Minimum contribution
Till 5th April 2018 1% 1% 2%
6th April 2018 - 5th April 2019 2% 3% 5%
From 6th April 2019 3% 5% 8%
Click here for more information.


4) Statutory Payment Rates
The Small Employer's Relief threshold (£45,000) and recovery rate (3%) remain unchanged for 2018-19, as does the standard recovery rate (92%).

Statutory payment rate (weekly) for the tax year 2018-19 are shown in the table below:

Statutory Sick Pay(Weekly) £92.05
Statutory Maternity Pay (Weekly) £145.18
Statutory Paternity Pay (Weekly) £145.18
Statutory Adoption Pay (Weekly) £145.18
Statutory Shared Parental Pay(Weekly) £145.18
Click here for more information.


5) Student Loan Threshold
From 6 April 2018 onward student loan threshold for
Only thresholds are different for both the plans but the calculation method and deduction rate (9%) remains the same.

Click here for more information.


6) Reporting Payrolled Car Benefit
This is important for employers who registered to use the payrolling service where car and car fuel benefits are made available to an employee. From 6th April 2018, it is mandatory to report these benefits using a FPS. Employers who haven't payrolled these benefits can still continue to report using P46(Car) form.

Click Here to know about new first year licensing rates and other details.


Thank you for your attention,
Regards
Support Team