Total Office Help Bookkeeping
 
 
 
01234 924224 
helpme@totalofficehelp.co.uk 
 
 
 
 

 
NEWS AND INFORMATION 
from Total Office Help Ltd 

NATIONAL MINIMUM WAGE FROM 1 APRIL 2018 

New Pay rates for everyone from 1 April 2018 
 
Make sure you are paying the correct rate depending on the age of your employee.  
 
age 25+ £7.83  
age 21-24 £7.38 
age 18 - 20 £5.90 
age16-17 £4.20 
apprentices £3.70 
Check - and check again - that you are paying the correct rates. If you fall foul, the penalties will be steep and HMRC will name & shame. Not to mention your reputation as a fair employer may also take a beating, even if you didn't do it on purpose.  

TAX YEAR CHANGES 

Tax year 2018 / 2019 
 
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 £228 and £162 per week respectively (or £988 and £702 per month). The thresholds for 40% (higher) & 45% (additional) tax rates have also increased.  
The threshold above which Employers' National Insurance contributions (13.8%) are payable is also increasing to £162 per week (or £702 per month), so this should mean savings for both you and your staff. But remember that you do not pay Employers' NIC for anyone under the age of 21. And there are special rules for apprentices too! 
 
Marriage Allowance 
If your spouse does not earn £11,850 per year, you may be able to transfer part of their tax-free allowance (up to £1,190) to you and thus earn more without paying tax. This is simple to do over the phone with HMRC. 
 
Employer's Allowance Towards NIC 
This has been in force for a couple of years now and for 2018/19 the allowance remains at £3,000 per employer. BUT the rule about sole directors also remains - if you are the only employee on your own payroll, you CANNOT 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. 
 

KEEPING RECORDS 

What records do I need to keep and how long do I need to keep them? 
 
This is one of the most common questions asked of accountants and bookkeepers. The answer is: 
IT DEPENDS! 
 
But it isn't that complicated really. HMRC have published a 4 page leaflet which clearly details what you need to keep in order to satisfy their rules whether you are a sole trader, partnership or limited company and whether you are VAT registered or not. It's easy to read and is a great start for anyone new in business but also a good check for those who have been in business for a while - things do change and you may even find that you don't need to keep as much 'stuff' as you thought you did. 
 
If you need any help sorting out your old or current paperwork, give us a call. It's what we do! 
And we can take away all the stuff you don't need and have it shredded securely at great rates. 
Total Office Help - Business support where it matters 
 
 
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