It’s that time of year again! Over the next few weeks we’ll share some handy hints and tips on how to simplify Payroll Year end with Xero.
We had lots of positive feedback on the changes we launched this time last year, but we’re not resting on our laurels. Take a look at some of the updates HMRC are making for the new year and some improvements to Xero that will save you time and worry during this busy time:
2018/19 Fiscal Year – Updates from HMRC
Income tax thresholds
- Personal allowance will increase from £11,500 to £11,850
- UK Higher rate threshold will increase from £45,001 to £46,351
- Introduction of Scottish Starter and Intermediate tax rates.
National living wage increases
- National living wage for employees aged 25 and over will increase from £7.50 per hour to £7.83 per hour
- Additional national minimum wage increases also for those aged 24 and under.
Statutory rate increases
- £140.98 to £145.18 (Maternity, Adoption, Paternity, Shared Parental Pay)
- £89.35 to £92.05 (Statutory Sick Pay)
- There’s no change to the £3,000 annual allowance for eligible employers.
Here’s what Xero will do for you
2018/19 Tax Code Uplifts
- Like last year, Xero will uplift tax codes for employees with codes ending in L, M, and N
- All other tax codes will be rolled over and can be updated manually if needed
- W1/M1 values will be cleared down going into the new tax year.
- P60 reports for the 2017/18 tax year will be made available to you in March
- P11 reports will also be updated to support the new tax year.
EYU (Earlier Year Update)
- Submit an EYU for 2017/18 starting 20th April 2018
- New search feature on the EYU list of employees will be available at the end of February.
- Xero automates calculations for Maternity, Paternity, Adoption, Sick and Shared Parental Pay
- The statutory rate will automatically increase.
Upcoming improvements in Xero
Early in the new tax year we’ll launch more enhancements that will:
- Post statutory recoveries to your accounts when you complete a pay run so your finances are accurate
- Let employees see their P60 report in My Payroll
- Automatically update employee tax codes for their P6 and P9 notices.