Payroll Information - 2007/08

National Minimum Wage

• The rates from 1st October 2007 for the National Minimum Wage are as follows:
• Under 18 - £3.40 per hour
• Youth Rate 18-21 years old - £4.60 per hour
• The main rate for over 21 is £5.52 per hour

Payment of PAYE by BACS or CHAPS

All employers with more than 250 staff must make their PAYE remittance by BACS or CHAPS. The date the remittance is due has been extended by 3 days to 22nd of each month following the end of the relevant tax month.

Quarterly Payments of  PAYE & NIC

Employers may choose to make their payments to the Collector of Taxes on a quarterly basis ie, on 19th July, 19th October, 19th January and 19th April, provided that their Monthly payments do not exceed the threshold which currently stands at £1500 per month for the 2007/08 tax year.

Student Loans

There is a 9% deduction rate for student loans on earnings over £15,000.

Internet Discounts

Small Employers with less than 50 employees will receive year on year incentive payments if they file electronically before the dates shown:

 (For more details, call 020 8464 5951 and ask for Payroll)

Construction Industry Tax Scheme  

The new Construction Industry Scheme was introduced on 6th April 2007.

Under the rules of the new scheme all sub-contractors must be verified with HMRC before a payment can be made to them. HMRC will advise the rate of tax to be deducted from their payment and this will either be at 20% for registered sub-contractors or 30% for unregistered sub-contractors. They will also advise if no deduction of tax is to be made ie. Gross payments.

Any sub-contractors paid under the old CIS will not need to be verified however their rate of deduction increases from 18% to 20%.

All payments made to sub-contractors must be declared to HMRC on a monthly Contractors return and this form should be submitted by the 19th of each month to avoid an automatic penalty of £100.00.

For more information regarding any of the above then contact us via our contact page

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