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01473 359720
COLCHESTER
01206 867551
CHELMSFORD
01245 254780
LONDON
0208 221 8282

Professional, Proactive,
Partner-led advice

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LONDON: 0208 221 8282
CHELMSFORD: 01245 254780
COLCHESTER: 01206 867551
IPSWICH: 01473 359720

Email: info@lbgroupltd.com

Payroll Update From April 2018

Payroll Update From April 2018

Payroll Update From April 2018

Payroll Update From April 2018

Automatic Enrolment 

The Pensions Regulator will be increasing the minimum pension contributions that must be collected, from the new tax year starting 6 April 2018.

Please see below a table of the new minimum contribution rates to be collected from this date:-

 

Pension Basis

 

 

Employee Minimum %

 

Employer Minimum %

 

Total Minimum %

 

Qualifying Earnings

 

 

3%

 

2%

 

5%

 

Total Earnings

 

 

3%

 

2%

 

5%

 

Basic Pay

 

 

3%

 

3%

 

6%

Payroll Update From April 2018
If the LB Group payroll team manage your pension deductions, we will automatically make the statutory increases from the first pay period following 6 April 2018. If you want to make changes to the contribution percentages that will be in excess of the minimum contribution rates, please contact the LB Group payroll department to arrange this.

Where employees or employers are already contributing above the new minimum rates, we will not make any amendments unless requested to do so by the employer.

National Minimum Wage

The National Minimum Wage rates will increase effective from 6 April 2018. Please see below table of the new rates.

 

Age Group

 

 

National Minimum Wage Rate

 

25 + (National Living Wage)

 

 

£7.83 per hour

 

21 – 24

 

£7.38 per hour

 

 

18 – 20

 

£5.90 per hour

 

 

Under 18 (but above compulsory school leaving age)

 

 

£4.20 per hour

 

Apprentices Under 19

 

 

£3.70 per hour

 

Apprentices aged 19+ (in first year of apprenticeship)

 

 

£3.70 per hour

Payroll Update From April 2018

Please ensure your employees are being paid in line with the new rates from April 2018. If you need to make any changes to employee’s hourly rates or salaries please inform the LB Group payroll department prior to your first pay period following 6 April. We will check the legal minimums are being met where we hold details of hours worked or hourly rates.

Statutory Payments

The table below shows the new rates for statutory payments (including statutory sick pay and statutory maternity pay) from 6 April 2018.

 

Statutory Payment

 

Rate

 

 

SMP (Statutory Maternity Pay )

 

 

First 6 weeks @ 90% of Average Weekly Earnings (AWE)

Thereafter £145.18 per week (or 90% of AWE, whichever is lower)

 

 

SPP (Statutory Paternity Pay)

 

 

£145.18 per week (or 90% of AWE, whichever is lower)

 

 

SAP (Statutory Adoption Pay)

 

 

First 6 weeks @ 90% of AWE

Thereafter £145.18 per week (or 90% of AWE, whichever is lower)

 

 

SSP (Statutory Sick Pay)

 

 

£92.05 per week

Personal Allowance

The personal allowance will increase to £11850 per annum from 6 April 2018.

If an employee has a full personal allowance their tax code will be 1185L.

Emergency tax codes will be 1185L W1, 1185L M1 or 1185L X.

 

UK Tax Rates

The table below shows the tax rate bands effective from 6 April 2018 (excludes Scotland):-

 

Basic Rate Tax

 

 

20% on annual earnings above the PAYE tax threshold and up to £34,500

 

 

Higher Rate Tax

 

 

40% on annual earnings from £34,501 to £150,000

 

 

Additional Rate Tax

 

 

45% on annual earnings above £150,000

If you have any queries, or would like to discuss any of the effective changes, please contact the LB Group payroll department on 01206 867551. Alternatively please send an email enquiry to payroll@lbgroupltd.com.

Payroll Update From April 2018

LB Group Limited registered in England © 2018 Company Number: 2796741. Associate Directors are not statutory directors of the firm.

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