Tax year 2016 / 2017
Even if your company financial year end is a different date, 6th April is always an important date on the calendar. It's the end / start of the tax year, so changes brought about by the government often take effect now.
A few things (there are more!) that are changing this time - and which we recommend that you should look into to see if they are relevant to you:
Tax and NIC thresholds increase
Thresholds above which (most) employees pay income tax (20%) and National Insurance (12%) are increasing to £212 and £155 per week respectively (or £917 and £672 per month). The thresholds for 40% (higher) & 45% (additional) tax rates are also increasing.
The threshold above which Employers' National Insurance contributions (13.8%) are payable is also increasing to £155 per week (or £672 per month), so this should mean savings for both you and your staff. And remember that you do not pay Employers' NIC for anyone under the age of 21. And there are special rules for apprentices too!
Employer's Allowance Towards NIC
This has been in force for a couple of years now and for 2016/17 the allowance will increase from £2,000 to £3,000 per employer. BUT there's criteria change this time - if you, as a diretcor of your own business, are the only employee on your payroll, you will NOT be allowed to claim this allowance.
THIS IS NOT AUTOMATICALLY APPLIED - REMEMBER TO TICK THE BOX ON YOUR PAYROLL SOFTWARE ON THE FIRST PAY RUN IN THE NEW TAX YEAR.
As always, we recommend that you speak to your accountant or tax adviser who will be able to offer you the best advice for your circumstances.