As the end of another tax year approaches, it’s essential for employers to ensure they’re prepared for the transition from tax year 2023/24 to 2024/25. This article provides a comprehensive guide to help employers understand and comply with the necessary procedures.
Ensuring Accuracy and Compliance for Tax Year End 2023/24:
Employee Information Verification
It’s crucial to verify that all employee details, including names, addresses, national insurance numbers, and tax information, are accurate and up to date.
Compliance Check
Stay up to date with the latest HMRC regulations to ensure compliance with all requirements.
Year-to-Date Figures Review
Review year-to-date figures to ensure they align with payroll records and Real-Time Information (RTI) submissions.
Final Payroll Processing
Process the final payrolls for the tax year and submit all necessary information to your payroll provider.
HMRC Submission
Submit all required data accurately and on time to HMRC by the deadline of 19th April 2024.
P60 Distribution
Provide P60 forms to both employees and employers by the deadline of 31st May 2024.
Employee Expenses and Benefits Reporting
Report employee expenses and benefits by 6th July 2024 and issue P11d forms accordingly.
If you have your payroll already set up with NRB you do not need to worry, we have this covered for you. However, if you are interested in looking at NRB’s payroll service offering for the new tax year 24/25 please go to https://www.nrb.co.uk/services/bookkeeping/payroll-services Services – NRB or email payroll@nrb.co.uk.
Key Considerations for Tax Year 2024/25
Automatic Tax Code Updates
Employee tax codes for the new tax year will be automatically uploaded when setting up the first pay period.
Changes in employee National Insurance Contributions
The main rate of employee National Insurance will decrease from 10% to 8%.
National Living Wage
Ensure compliance with the National Living Wage rates:
- Workers aged 21 and over: £11.44 per hour
- Workers aged 18 to 20: £8.60 per hour
- Workers aged under 16: £6.40 per hour
- Apprentices: £6.40 per hour (if aged 19 or over and have completed the first year of their apprenticeship).
Further guidance is available at National Minimum Wage and National Living Wage rates – GOV.UK (www.gov.uk).
As employers gear up for tax year end 2023/24 and the commencement of tax year 2024/25, it’s imperative to ensure accuracy, compliance, and readiness. By following the outlined steps and staying informed about changes in regulations and wage rates, employers can navigate the transition smoothly. If you have any concerns, please make sure you contact your payroll team or provider for support.
