Budget 2014
2nd April 2014
The Budget 2014 and how it affects your payroll
- Employees will start paying tax when they earn over £10000 per year (pro rata) increased by £560 per year
- Employees and employers will start paying National Insurance Contributions when they earn/pay over £7956 per year (pro rata) increased by £276
- ALL employers will receive a maximum of £2000 off their National Insurance Contributions
- Statutory Sick pay increases to £87.15 per week but employers will NO longer be able to reclaim (if eligible) the money you pay out to employees.
- Statutory Maternity/Paternity and Adoption Pay increases (after the first 6 weeks @ 90% of their pay) to £138.18 per week (depending on eligibility)
- The new minimum wage rates from 1st October 2014 will be:
- 21 years and above £6.50
- 18-20 years £5.13
- 16-17 years £3.79
- Apprentices £2.73
From April 2014 (05 May payment) HMRC will be implementing daily interest for anyone not paying their PAYE on time.
From October 2014 they will fine anyone not submitting their wages on a weekly/2weekly/4 weekly/monthly basis or CIS on a monthly basis.