Below is some useful general payroll information that we hope you may find useful when dealing with your employee’s payroll queries. We can also help and advise over the telephone or email if you wish. Our doors are always open and we respond to all queries and questions promptly. We are here to help!

HOLIDAY

All employee’s are entitled to a minimum of 5.6 weeks paid holiday and this can include Bank Holidays. Part timers are paid pro-rata. For example an employee working 3 days per week is entitled to holiday pay of 3 days x 5.6 weeks = 16.8 days. For employee’s joining part way through your holiday year they are entitled to be paid holiday proportionate to the rest of the holiday year so we can calculate this for you. All Employee’s leaving are entitled to their accrued holiday pay calculated up to the day they are leaving.

NATIONAL MINIMUM WAGE

Date Age Minimum Hourly Rate
From 01/10/2013 Aged under 18 (but above compulsory school age) £3.72
From 01/10/2013 Aged 18-20 inclusive £5.03
From 01/10/2013 Aged 21 and above £6.31

Apprentice rate is £2.68 for those under 19 or those in their first year. If you are 19 or over and past your first year you receive the rate that applies to your age.

May we remind you that it is a criminal offence for an Employer to pay less than the minimum wage and can carry a maximum fine of £5000.00

STATUTORY MATERNITY PAY 2014/2015

QUALIFYING RULES
  1. Must have been continuously employed by you for 26 weeks going into the qualifying week.
  2. Still be pregnant at the start of the 11th week before the week the baby is due, or have had the baby by then.
  3. Have average weekly earnings which are not less than the lower earnings limit for payment of NIC which applies on the Saturday of the qualifying week.
  4. Normally give at least 28 days notice before her SMP is due to start.
CALCULATING SMP

If your employee meets all the qualifying conditions, then for the first 6 weeks SMP will be 90% of the employee’s average weekly earnings. After that it will be either the weekly standard rate or 90% of the employee’s average weekly earnings whichever is less. At present the standard weekly rate is £138.18.

A quick and easy user friendly method to calculate SMP is on the Inland Revenue website go to www.hmrc.gov.uk/calcs/smp.htm

STATUTORY SICK PAY 2014/15

The only days you can pay SSP for are the days of the week your employee normally works, their contracted working days. You can however decide not to use the contracted working days if, for example your workforce operates a varied work pattern. For simplicity you may wish to have the same days each week as their working pattern and can do this if your employee’s are in agreement.

SSP is not payable for the first three qualifying days these are called waiting days. For employee’s earning £102.00 per week or more the rate of SSP is £87.55 per week.

PERSONAL TAX ALLOWANCE 2014/15

The following changes to Income Tax from 6th April 2014

  • Personal Allowance – £10000.00
  • For this tax year earnings above £150,000 will attract tax at 45%
  • Basic Rate 20% tax band is from £1 to £31865.00
  • Higher Rate 40% tax band is from £31865.00 to £150,000
  • Additional Higher Rate is 45% above £150,000

TAX THRESHOLDS, RATES AND CODES

PAYE tax rates, thresholds and codes Figures to use 2014-15
PAYE tax threshold £192 per week £833 per month £10,000 per year
Basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £31,865
Higher tax rate 40% on annual earnings from £31,866 to £150,000
Additional tax rate 45% on annual earnings above £150,000
Emergency tax code 1000L

NATIONAL INSURANCE 2014/2015

Class 1 NICs thresholds Figures to use 2014-15
Lower earnings limit (LEL) £111 per week £481 per month £5,772 per year
Secondary Threshold (ST) £153 per week £663 per month £7,956 per year
Primary Threshold (PT) £153 per week £663 per month £7,956 per year
Upper accrual point (UAP) £770 per week £3,337 per month £40,040 per year
Upper earnings limit (UEL) £805 per week £3,489 per month £41,865 per year

CLASS 1 NICs: RATE FOR EMPLOYEE (PRIMARY) CONTRIBUTIONS

NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).

NICs category letter Earnings at or above LEL up to and including PT Earnings above PT up to and including UAP Earnings above UAP up to and including UEL Balance of earnings above UEL
A 0% 12% 12% 2%
B 0% 5.85% 5.85%
2%
C NIL NIL NIL NIL
D 0% 10.60% 12.00% 12%
E 0% 5.85% 5.85% 5.85%

PAYMENTS TO HM REVENUE & CUSTOMS 2014/15

The contact number for PAYE and self assessment is 0845 3667 816. Office opening hours are Monday to Friday 8am – 8pm and 8am – 4pm Saturday.

You can pay over your PAYE by internet or telephone banking or let us make the payment for you by BACS, direct to HMRC once payroll has been finalised.

If paying over yourself you need to quote your Accounts reference which is found on the Yellow PAYE payments booklet. Further information is found on the HMRC website at www.hmrc.gov.uk/payinghmrc/index.htm

Accounts Office Sort Code Account Number Account Name
Cumbernauld 08-32-10 12001039 AO Cumbernauld