The 6th April 2024 is the start of the new tax year, and it’s important that you are aware of the changes that will come into effect and impact you and your household staff.
We’ve covered all the major changes below, but full details of the new Tax Rates & Thresholds can be found here.
National Insurance & Tax-Free Allowance
National Insurance contributions have decreased to 8%. This will have no impact on the total cost of employing your household staff if their salary is based on a gross agreement. If you have agreed a net salary with your staff, then their take home pay will be unaffected and as an employer your total cost will decrease.
The personal tax allowance threshold for 2024/25 has been frozen at the limit of £12,570, so you will only pay income tax on any earnings which are above the £12,570 threshold.
The National Minimum Wage & The National Living Wage
The National Minimum Wage and National Living Wage have increased for 2024/25, and as an employer you have a legal obligation to be compliant.
All changes can be seen in the table.
The new rates apply from 1st April 2024.
If you need to make adjustments to your staff’s salary, you can do so via our Members Area or by calling our team.
Statutory Payment rates for 2024/2025
The first 6 weeks of Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) remain the same, at 90% of the employee’s average weekly earnings (AWE). The statutory weekly rate for the remaining 33 weeks will increase to £184.03 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (ShPP) and Statutory Parental Bereavement Pay (SPBP) will all share the same weekly rate of £184.03 or
90% of the employee’s average weekly earnings, whichever is lower.
The weekly rate for Statutory Sick Pay (SSP) will increase for 2024/25 from £99.35 to £116.75.
These changes will apply from April 2024.
Live-In Household Staff
From 1st April, live-in domestic workers must be paid at least the National Minimum Wage.
The accommodation offset allowance is still applicable and details will be shared once this update has been announced in full.
(Please note that whilst we are confident this change is coming into force, we need to wait for ACAS and HMRC to update their advice before officially confirming.)
If you need to adjust your employee’s salary, you can do this via our Members Area or by calling our team.
Benefits in Kind
As part of your subscription fee, we will complete a submission to HMRC for any taxable benefits you are providing your employee with. All you need to do is let us know what your household staff’s benefits are, and we will submit the P11D on your behalf.
The deadline to declare all the necessary Benefits in Kind information to us is the 31st March 2024.
If you have any questions about any of these changes you can email us at info@stafftax.co.uk or call us on 020 3137 4407, and we’ll be happy to help!
