Legislation changes for 2020/2021 tax year
With Payroll, you can be confident that your service is always up to date with the latest legislation as it is automatically updated with the rates and thresholds for the new tax year
Here are the legislative changes for the 2020/2021 tax year:
Statutory Bereavement Pay
Update | Change in the software |
From April 2020, employees are entitled to two weeks’ leave following the death of a child which is paid at the statutory paternity rate. Bereaved parents are entitled to at least two weeks’ leave following the death of a child under the age of 18 or if they suffer a stillbirth from 24 weeks of pregnancy. |
Statutory Bereavement Pay (SPBP) can be selected during a pay run. Within a pay run, select the employee and click Add Absence. |
Company Car Tax
Update | Change in the software | ||||||||||||||||||||||||||||||||||||||||||||
Tariffs are changing in 2020 to encourage the use of electric and low-emissions vehicles. The new rates are:
|
You can now record the electric capability of car miles when adding a cash equivalent. |
Employment Allowance
Update | Change in the software |
Employment Allowance allows employers to reduce the amount of employer’s Class 1 National Insurance they pay to HMRC by up to £3,000 per year. It's currently available to employers of all sizes but, from April 2020, it will be limited to employers with an NI bill of £100,000 of less in the previous tax year. |
When you process your year end, you'll be asked whether you want to continue claiming Employment Allowance. |
Class 1A Termination Payments
Update | Change in the software |
Termination payments must now be reported in the Full Payment Submission, in the same pay period they happen. Employer National Insurance Contributions are due on any payments above £30,000. |
Employees are exempt from National Insurance and only pay income tax on payments over £30,000. |
Earlier Year Updates to prior year Full Payment Submissions
Update | Change in the software |
HMRC has extended the use of the RTI Full Payment Submission (FPS) to employers to continue to report revised year to date payment data after the deadline of 19 April. However, the EYU will still be accepted for the 2018-19 tax year. |
FPS will now be used to make amendments to tax years 18-19 onwards beyond 19 April 2020. |
UK tax bands and rates
Scottish tax bands and rates
Welsh tax bands and rates
National insurance (NI) bands and rates
Statutory payments
Employment allowance
Student loan rates
Postgraduate loans
National minimum/living wage
Visit the Payroll Year End Centre >