It’s that time of year again – a new tax year means changes to running your payroll. So, what do you need to watch out for?

Changes to Workplace Pension contributions

This is the new one this year. Contributions to the Workplace Pension are increasing from April 2018, and will do so again on 1 April 2019.

To date, staff in your scheme have contributed 1% of their qualifying earnings and you have matched it. A total of 2% of their qualifying earnings has been put into a pension scheme.

From April, the employee’s contribution increases to 3% and your contribution to 2%, ie a total of 5%.

In April 2019, it will increase to 5% for the employee and 3% for you – a total of 8%.

Make sure you reflect the increases or you can be fined. Full details are on The Pension Regulator’s website

Changes to PAYE codes

The standard tax code for employees has changed from 1150L to 1185L to reflect the increase in the personal allowance to £11,850. Make sure your payroll software is updated to reflect this, and any other changes to your employee’s codes.

If they’re on a non-standard code, HMRC will notify you.

Changes to Minimum Wage

The rates for Minimum Wage and Living Wage will increase to:

  • Aged 25 and over – £7.83
  • Aged 21-24 – £7.38
  • Aged 18-20 – £5.90
  • Under 18 – £4.20
  • Apprentice – £3.70

Again, paying less than these rates can lead to big fines. And unhappy staff!


If you’ve got any queries on any of these, please get in touch.

If you found this useful, please share it using the icons at the side of the page, or leave a comment below.

Any questions?

If you’d like a meeting or a Skype call to discuss this, please get in touch with your favourite Liverpool accountant