UK Year End is approaching quickly and the Payroll team in Xero have been hard at work to make this your smoothest year yet.
We will keep you updated over the coming weeks with information about how to use Payroll in Xero to make your year end tasks a breeze. In the meantime, here is an overview of some of the changes made by HMRC and a sneak peek of the product updates that you can expect:
2017/18 Fiscal Year – Updates from HMRC
Income Tax Thresholds
- Personal Allowance will increase from £11,000 to £11,500
- Higher Rate Threshold will increase from £43,000 to £45,000
National Living Wage Increases
- National Living Wage for employees aged 25 and over will increase from £7.20 per hour to £7.50 per hour
- Additional National Minimum Wage increases for those aged 24 and under
What is Xero doing to help you make this your easiest year end ever?
2017/18 Tax Code Uplifts
- W1/M1 values will be reset going into the new tax year.
- Not sure how to lift your tax codes for the new year? No problem! Xero will handle tax code uplifts for employees with tax codes ending L, M, and N for 2017/18.
- All other tax codes will be rolled over and can be updated manually if needed.
- Soon you will be able to choose your employment allowance settings for the new tax year.
- P60 reports for the 2016/17 tax year will be made available in March.
- P11 and P45 reports will be updated to support the new tax year.
EYU (Earlier Year Update)
- More information coming soon, but we want to help you file EYUs directly from Xero
More updates and information about when these changes will be available and what you can do to get ready will be coming soon.