Legislation Changes on the Horizon
To keep Schools and Academies up to date with upcoming Legislation Changes Strictly Education have put together the following information.
From April 2018 the following rules will apply:
- All PILONs will be subject to tax and NICs as earnings
- All other post-employment payments which would have been treated as general earnings if the employee had worked their notice period will be subject to tax and Class 1;
- Payments relating directly to the termination of the employment will have a £30,000 income tax and employer NICs exemption. There will continue to be an unlimited employee NICs exemption on termination payments
- Payments over £30,000 will be subject to employer NICs.
Although still in discussions at present, there is to be a levy on large employers to fund 3 million additional apprenticeships in the next 5 years. In November the government published its response to a consultation on the levy and announced in the chancellor’s autumn statement that the rate of the levy will be 0.5 percent of an employers pay bill. Only employers with pay bills over £3Million will pay it. If this goes ahead it will come into effect from April 2017 but we will of course keep you updated and the changes that may apply to you.
Grandparents and Childcare
The government is planning to extend shared parental leave and pay to working grandparents, with the aim of increasing flexibility and choice for working parents, and to help support the costs of childcare during the first year of a child’s life. The government aims to implement the policy by 2018.
The HMRC have passed new guidelines enabling them to take overdue tax, over £1000, directly from individual’s bank accounts. There are strict criteria surrounding this though, including have prior meetings and consultations with the individual, before any money is removed, as well as ensuring individuals have a set amount in there account.
Pensions Auto Enrolment
Auto Enrolment to pension schemes continue to be rolled out. By April 2017, all business started before April 2012 will go through the enrolment process. New Business from 1st April 2012 will stage between 1st May 2017 and 1st February 2018. You can check your staging date on The Pensions Regulators website. Strictly Education can assist in the administration surrounding this so please do not hesitate to contact us if you have any concerns in this area.
For those of you who fall under the Local Authority as the employer and first staged during 2013, you will be coming close to or already reached your automatic re-enrolment date (Assessment at Staging) and therefore you will need to ensure all administrative duties under staging have been undertaken and are followed accordingly.
In addition, for those Local Authorities that applied Transitional Delay, the employee’s affected will need to go through the Auto Enrolment staging process in October 2017.
To ensure we continue to offer the highest level of support to our clients, Strictly Education offer a ‘pension enhancement service’ ,which enables us to assist with the production of the relevant reports, but also the other administration tasks that would typically be controlled by the Academy/school for Auto Enrolment. This includes the production of the letters to the relevant members of staff and the documenting of staging dates.
If this is a service you would be interested in and are a client of our Payroll Service please contact the team, so we can provide you with a copy of the ‘pension enhancement service’ SLA detailing the additional costs for this service.