Payroll Year End 2018/19

Year End Instructions

You can download the Payroll year end instructions from the following link: Download the instructions 

Download link

You can download the Payroll year end update from the following link: Download now

General Software Changes

Personal allowances have been uplifted this year so you will need to update the personal allowances for codes L, M and N before processing the first pay period of 2018/19.

You can find instructions on making these changes for each payroll company you process the payroll year end guidance notes above.

Employment allowance

The Employment Allowance is available again for the year April 2018/19 and if you are eligible you could reduce your Class 1 NICs by up to £3000 in the 2018/19 tax year.  If you claimed in the 2017/18 year the claim will be automatically brought forward to the new tax year; there is no need to submit the claim again.

Scottish rate of income tax

Additional rate bands come into effect from 6th April 2018; new rates of tax have been introduced: 19, 21, 41 or 46% will automatically applied to employees with an "S" prefix to their tax code.

Company car benefits

From April 2018, if you choose to payroll company cars, the car
information must be submitted via payroll and tax will be collected in real
time through a monthly deduction.
 For employers, this
means P11d and P46 cars are no longer required. 
Employers wishing to payroll benefits need to register before the start
of the new tax year.

Automatic
enrolment 

Under automatic enrolment, pension contributions are
due to increase over time. 
From April
2018 the minimum total contribution is 5%, with a minimum of 2% coming from the
employer.
  These new rates need to be
manually applied to your pension setup (see below).

Tax Code Changes

For EVERY PAYE scheme which is being process please refer to the following:        

1.   Open the company in Keytime Payroll (for 2018-19)

2.    Go to payroll > End of year

3.     Select change tax code

4.     Type L to change the L code

5.     Enter 35 for the amount to change

6.     Type M to change the M code

7.     Enter 39 for the amount to change

8.     Type N to change the N code

9.     Enter 31 for the amount to change

Emergency tax code is 1185L

For further details regarding Tax and tax credit rates and thresholds for 2018-19 please refer to the following:

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019

Student Loan thresholds

If you have ticked the box for a Student loan the annual earnings above which collection will start are as follows:

Threshold for Plan 1   £18,330

Threshold for Plan 2   £25,000

Auto enrolment minimum contribution



Minimum total contribution increases to 5% from 6th
April 2018.
  To increase the contribution
rate, click the Company menu, select Pension Details, select (click) the
pension and click the Details tab.
  Enter
the new rates, note that the minimum contribution for employers is 2%.