Looking ahead: the payroll and pensions landscape of 2018

Wondering what this year could have in store for payroll and pensions? Take a look below at what potential impact may follow the key events and announcements that we know about for 2018 so far:

Month What to look out for What this means Impact
1st  February Last staging date for auto-enrolment Applies to PAYE schemes set up by 30.9.17 All new PAYE schemes since 1.10.17 have duties start date as soon as first worker engaged on FPS
14th February Deadline for Scottish Budget to be passed Tax rates confirmed 5 possible new tax rates: 19%/20%/21%/41%/46%
February White paper on DB schemes Moves to allow consolidation and new powers for TPR More upheaval in remaining DB schemes?
February Pimlico Plumbers case at Supreme Court More clarity on who is a ‘worker’ Expect more TPR activity on workers who should be auto-enrolled
13th March Spring statement
30th March Gender pay gap reporting Deadline for public sector Data for 31.3.17 ‘snapshot’ must be uploaded by this date
4th April Gender pay gap reporting Deadline for private sector Data for 5.4.17 ‘snapshot’ must be uploaded by this date
1st April NMW increases All rates increase Effective for first pay period that begins on, or after 1.4.18 – check effect on salary sacrifices especially for pensions
6th April Pension increases Auto enrolment minimum contributions increase to 2% employer, 5% total Ideally implement from 1.4.18 if scheme rules allow, so no pro-rating old & new contributions
6th April Lifetime Allowance changes Increase to £1.03m New round of protection
6th April New RTI data field Additional field on FPS for student loan plan number Inserted every time deduction is made, new generic warning msg will indicate if wrong plan in use
6th April Payrolling of cars If cars are payrolled, new RTI fields are mandatory Additional fields must be completed as per the P11D if cars are payrolled – see https://www.gov.uk/guidance/sending-car-data-to-hmrc-payrolling-car-benefit
6th April 5 Scottish rates in force? Payroll software changes, comms required Not clear yet what will happen to relief at source tax relief with 19% and 21% rates. New specialist codes SD0, SD1 and SD2 = 21%, 41% and 46% no allowances, SBR remains in use
6th April Student loan threshold changes Both Plan 1 and 2 change Increase of threshold to £25K for plan 2 will see significant annual reduction in payments. Variable interest rate earnings threshold increases to £45K
6th April Childcare vouchers closed to new entrants Existing members by 6.4.18 can remain until leave job or scheme Employees can choose 30-hour free childcare and receive vouchers too. Employees who opt for tax-free childcare have three months to give up vouchers
6th April Changes to NI on pay in lieu of notice “post-employment notice pay’ always to be subject to tax and NI whether contractual or not Increased cost of 13.8% employer’s NI plus potentially 0.5% apprenticeship levy
25th May GDPR and new UK DP Act in force Significant changes to data handling and 3rd party contracts Expect upsurge in Data Subject Access Requests
6th July New style P11D to reflect OpRA New calculation of ‘relevant amount’ for some benefits in kind Particularly impacts cars provided by OpRA with no transitional protection
October Pension Schemes Act 2017 in force Significant mergers of small master trusts pension schemes due to new regulatory regime Members must be moved to a new qualifying pension scheme without no break in membership


This article was originally published on Accounting WEB here