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Announcements

Tax Year Changes 2017-18


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 only after 31st March of the Tax year.

When moving to new tax year 2017-18, please take a note of the following changes below:-

1) Global Tax Code uplifted to 1150L
2) PAYE and Scottish Rate of Income Tax(SRIT).
3) National Insurance Contributions(NIC) Rates
4) Introduced Apprenticeship Levy
5) Statutory Payment Rates
6) Student Loan Rate
7) Notional payment in payrolled benefits
8) Vehicle tax modifications( M1 Vehicles )

1) Global Tax Code uplifted to 1150L
HMRC have announced a general 'uplift' of all tax codes with 'L' suffix by 50. The employee with tax code 1100L in 2016-17 will have their tax code uplifted to 1150L from 6 April 2017.

Tax Codes Tax Codes Scotland
Emergency Tax Code 1150L Emergency Tax Code 1150L
L Suffix Uplift 50 L Suffix Uplift 50
M Suffix Uplift 55 M Suffix Uplift 55
N Suffix Uplift 45 N Suffix Uplift 45
Click here for more information.


2) PAYE and Scottish Rate of Income Tax(SRIT)
Personal allowance increased from £11,000 to £11,500 for the tax year 2017-18. Table below shows the changes to income tax rates and income tax bandwidths from 6 April 2017.

Tax year Basic Rate 20% Higher Rate 40% Additional Rate 45%
2017-2018
Rest of UK
£1-33,500 £33,501 - 150,000 £150,001 and above
2017-2018
Scotland
£1-31,500 £31,501 - 150,000 £150,001and above
Click here for more information.


3) National Insurance Contributions(NIC) Rates
National Insurance Contributions(NIC) Rates for the tax year 2017-18 are shown in below tables.

Employee NI Rates expressed as decimal
  A B C H J M Z
LEL-PT 0 0 0 0 0 0 0
PT-UEL 0.12 0.0585 0 0.12 0.02 0.12 0.02
  0.12 0.0585 0 0.12 0.02 0.12 0.02
Above UEL 0.02 0.02 0 0.02 0.02 0.02 0.02

Employer NI Rates expressed as decimal
  A B C H J M Z
LEL-ST 0 0 0 0 0 0 0
  0 0 0 0 0 0 0
ST-UEL 0.138 0.138 0.138 0 0.138 0 0
Above UEL 0.138 0.138 0.138 0.138 0.138 0.138 0.138
Click here for more information.


4) Introduced Apprenticeship Levy
Apprenticeship levy will be introduced from 6th April 2017. Levy will be payable each month for all employers if the annual pay bill exceeds £3 million.
  • Levy will be charged at a rate of 0.5% of the employer's annual pay bill.
  • All Employers will have an annual levy allowance of £15,000 to offset against their levy liability.
  • However, connected companies or charities will only have single £15,000 levy allowance to share between them.
Click here for more information.


5) Statutory Payment Rates
The Small Employer's Relief threshold (£45,000) and recovery rate (3%) remain unchanged for 2017-18, as does the standard recovery rate (92%).

Statutory payment rate (weekly) for the tax year 2017-18 are shown in the table below.

Statutory Sick Pay(Weekly) £89.35
Statutory Maternity Pay (Weekly) £140.98
Statutory Paternity Pay (Weekly) £140.98
Statutory Adoption Pay (Weekly) £140.98
Statutory Shared Parental Pay(Weekly) £140.98
Click here for more information.


6) Student Loan Rate Changes
From 6 April 2017 onward student loan threshold for
  • Plan 1 will increase from £17,495 to £17,775.
  • Plan 2 threshold will remain unchanged(i.e. £21,000 ) and are applicable for 2017-18 also.
Only thresholds are different for both the plans but the calculation method and deduction rate(9%) remains the same.

Click here for more information.


7) Benefit In Kind modifications.
7.1) Notional Payment in Payrolled Benefits
Our application now allows you to include notional payment in payrolled benefits. To setup the Notional/ Benefit in Kind payment, follow the road map below.
Road Map :
Employer / Setup -> Chart of Setup -> Notional / Benefit in Kind Payment Setup

7.2) Report Car benefit details via FPS
You can now include the Payrolled Car benefit details within the FPS. You can notify the changes to HMRC by e-filing a FPS for the respective pay period rather than e-filing P11D. In order to payroll the Car Benefit, you need to First add the car in the Chart of Setup section and then assign it to the respective employee. Please follow the road map below:

Road Map : To Add Car
Employer/Setup -> Chart of Setup -> Car (Benefit in Kind) -> Add / Edit Car -> Add New Car

Road Map : To Assign Car
Payrun -> Pay Frequency-> Other Payments 'Enter link' -> P7. Notional / Benefit in Kind Payment Setup -> Select "Company Cars private use" from drop down -> Assign

Please Note : The benefits and expenses that you are aiming to payroll must be registered with HM Revenue and Customs (HMRC) using the payrolling employees taxable benefits and expenses service.


8) Vehicle tax modifications ( M1 Vehicles )
The vehicle tax rates will be modified for M1 Vehicles registered from 1 April 2017. For the first year tax rates will be based on CO2 emissions of the vehicle. These changes will not affect the vehicles registered before April 2017.

After the first year, tax rates will be the following:
  • £140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicles
  • £0 a year for vehicles with zero CO2 emissions

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

Please refer to the HMRC Employer Bulletin Click here


Thank you for your attention,
Regards
Support Team


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