For parents of babies born on or after 5 April 2015, Additional Statutory Paternity Pay (ASPP) will be replaced with Shared Parental Pay and Leave (ShPP/L). ShPP/L allows eligible partners to share parental pay and leave.
- Parents can agree to curtail maternity pay and leave into shared parental leave. The available shared parental leave is 52 weeks minus the weeks of maternity leave already taken
- The available shared parental pay is 39 weeks minus the weeks of maternity pay already taken
- At least a week must be taken at a time and all leave must be taken before the child's first birthday
- Parents can choose to be on leave at the same time
- Ordinary Paternity Leave is not affected. Fathers can still take up to two weeks OPL and then take SPL/ShPP if required
Statutory Adoption Pay will be paid at 90% of average weekly earnings for the first 6 weeks
- Statutory Adoption Pay becomes a Day one right
- From 5 April 2015 the first 6 weeks will always be paid at 90% of the average weekly earnings, mirroring SMP. For the remaining 33 weeks the SAP will be calculated as before
New NI Catergory letters for people aged under 21 (M,Z,I,& K)
- New NI category letters are being introduced to identify employees who are under 21 with the aim of encouraging employment of the young and reduce youth employment
- Employer NI contributions for employees under 21 are being reduced to a 0% rate up to a new NI threshold called the ‘Upper Secondary Threshold’ (UST). Employers will still pay 13.8% on any earnings above the UST
- To support the new transferable allowance between couples
- Only applicable to couples on the basic tax rates (not higher or additional rates)
- Couples have to apply to HMRC to transfer the allowance, once HMRC approves of the transfer new tax codes will be issued (M & N)
Changes in Tax Codes
There will be an uplift to tax codes with the suffix ‘L’. These codes will increase by 60; 1000L becomes 1060L and the emergency tax code from 6 April 2015 is 1060L. There is no ‘global uplift’ feature in QuickBooks, employee tax codes must be changed individually on their employee record.
Tax deductions will be restricted to 50% of taxable pay for all tax code type
Under the new rules, the tax deducted in a single pay period will be limited to 50% of Gross taxable earnings for all tax codes.
Full Payment Submission (FPS)
- Changes to support new legislation mentioned above
- Employee address must now be shown on each FPS
Further details showing how QuickBooks manages new legislation will be available nearer the release date of QuickBooks 2015 R6.