How New National Insurance and Tax Changes Will Impact Your Payroll

In 2024, changes to National Insurance contributions and income tax thresholds have been introduced by HMRC. These changes will directly impact your payroll process, making it essential for businesses to adjust their calculations and stay compliant with the new laws. Here’s what you need to know.

Main Body:
The new National Insurance thresholds mean that some employees will pay higher contributions, while others will benefit from reduced rates. Similarly, tax changes affect different income brackets, which may lead to adjustments in how payroll is processed. Businesses need to update their payroll systems to account for these changes to avoid discrepancies and possible fines.

Key Changes to Note:

1. National Insurance Thresholds: In 2024, the lower earnings limit for National Insurance contributions increased to £6,396, affecting both employers and employees.

2. Income Tax Adjustments: The basic rate threshold has shifted slightly, impacting tax bands and deductions.

Adjusting Your Payroll:

These changes can add complexity to payroll, especially for businesses managing payroll in-house. At The Wage Shop, we ensure that your payroll system is updated in line with the latest tax laws, keeping your business compliant and error-free. We handle the recalculations, saving you time and stress.

Conclusion:
Keeping up with tax and National Insurance changes can be a challenge, but with the right support, your business can stay compliant and avoid costly mistakes.