Firstly, we hope that you, your families and loved ones are safe and well.
This is our annual news update, to let you know of some changes from the New Tax Year.
NHS National Insurance Levy
You will all have heard about the £12 Billion National Insurance increase to help the NHS. We will be updating payslips accordingly and the suggested wording from HMRC is “1.25% uplift in NIC’s funds NHS, Health & Social Care”. You will see separate line items for these National Insurance increases for both the Employees National Insurance and the Employers National Insurance, the latter forms part of the employment costs. This addition will be included in your uplifted umbrella rate, as with all other employment costs. We will update our Frequently Asked Questions and any payslip explanations accordingly.
Please note this increase is an additional PAYE deduction implemented for the Government and this amount will be paid in full to HMRC. It is important to be aware that your agency and ePayMe will not benefit from this deduction, nor have control over the implementation.
Tax Codes, Exemptions & Allowances
Tax codes will not be changing, if you are currently on a 1257L tax code, this will remain the same for 2022. This means you can earn up to £242 per week or £1,048 per month before paying tax.
The national living wage, minimum wage and for those aged 23 and over will increase to £9.50 from £8.91.
The National Insurance Threshold will increase from 6th April to £190 weekly and £823 monthly.
Please remember to advise us if you are age exempt from NI contributions (employee). We will need a copy of your current passport or birth certificate in order to action this. We also require you to notify us of any changes to your personal details, in writing please by emailing us.
Student Loans
Student loan and postgraduate loan recovery is also increasing in the new tax year:
Plan 1 student loan will be deducted on earnings over £382 per week and £1,657 per month.
Plan 2 student loan will be deducted on earnings over £524 per week and £2,274 per month.
Postgraduate loan will be deducted on earnings over £403 per week and £1,7500 per month.
P60’s & Payslips
P60’s will be issued to you before the 31st May 2022. If you receive your payslips via email, your P60 will be emailed to you. Please check your junk/spam mailbox if this does not arrive in your inbox.
Please do ensure that you check your payslips regularly for any comments, points to action or messages. We also ask that you check hours/days/half days, days worked and umbrella rates are correct. If you do notice any issues, please contact us so that we can check with your agency.
Operational Updates
After carefully analysing the legislation changes, operational costs, data security and the value added by new improvements to our services, there will be a small incremental increase percentage applied to your daily/weekly margin from the 6th April from as little as 15p and this may affect your percentage charge or capped amount. However, this the margin still remains in the uplift amount invoiced for umbrella, which will increase accordingly.
We have also invested heavily into the infrastructure of the Customer Service and Registrations teams. This is to ensure that our service levels remain high with the best payroll experience possible. We have also remained focussed and have invested in accreditations and memberships to professional bodies in our industry. In addition, we have also overhauled our IT, the safety of the information we hold, the continuity of service and disaster recovery has never been so important.
We have not reviewed our margins since September 2018, please be assured that we have made every effort to keep this increase to the minimum and that this only reflects increased costs for the above.
Benefits
We also wanted to make your aware of some of the main benefits of being paid through an outsourced payroll provider. We can process your payroll through multiple agencies, across multiple sectors, all under one tax code. This is due to the payment being processed under our PAYE reference, which means we would be able hold your primary tax code. By doing this, it can help you when providing employment history for a mortgage, loan or financial support due to the continuity of employment; rather than having a string of short-term employment with different companies, which could affect any kind of financial support or credit.
We offer a FREE rewards service through our Pension Partner, Smart Rewards. This is available to you even if you choose to opt out of the pensions scheme.
Home Office right to work changes
From the 6th April, if you have a biometric residence permit, biometric residence card or frontier worker permit you will also need to provide a share code at the start of your employment, or if your BRP is due for renewal from the 6th April onwards. If you require further assistance with the right to work guidelines please click here to visit the Home Office website.
If you have any questions please to not hesitate to contact us by email or ☎ 01252 863700