Payroll legislation changes for 2023/24

Published by Sandra Smith on

Payroll legislation changes for 2023/24

Running payroll can be an administrative nightmare as statutory changes are frequently being made by HMRC. April 2023 saw some updated statutory payments rate for the 2023-2024 financial year which will impact your payroll process. We have reviewed all of the changes and summarised them below.

Statutory sick pay

Statutory sick pay has increased from £99.35 to £109.40 per week, with the lower earnings limit remaining at £123.00.

Statutory redundancy pay

The amount of statutory redundancy pay you can receive has been limited to £669.00 per week.

Statutory maternity, paternity, adoption and shared parental pay

Statutory maternity, paternity, adoption and shared parental payments have all increased from £156.66 to £172.48 per week.

Personal allowance

The personal allowance will remain at £12,570 for this financial year.

National living wage

The increase in the national living wage is now in place with adults seeing an increase of 9.7% to £10.42 per hour. Employees aged 21 to 22 will now receive £10.18 per hour, 18 to 20 year olds will receive £7.49 per hour and those under 18 will receive £5.28 per hour.

National Insurance

These were increased in April 2022, this was then reversed in November 2022 and have stayed at the same rate for 2023-2024.

Dividend allowance

The tax-free allowance for people who receive dividend income has now been reduced from £2,000 to £1,000.

Additional rate tax band

The threshold for the additional tax rate of 45% has now been lowered from £150,000 to £125,140 meaning higher earners will now pay more tax.

The above changes which came into effect in April 2023 will all need to be incorporated into your payroll process.

If you would like to chat about the latest payroll changes, please get in touch with the friendly Clear Vision Financial Management team. You can call us on 01794 330025 or email us. 

 

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