Total Office Help Bookkeeping
 
 
 
01234 924224 
helpme@totalofficehelp.co.uk 
 
 
 
 

 
NEWS AND INFORMATION 
from Total Office Help Ltd 

NATIONAL LIVING WAGE 

New Minimum Pay for all over 25s from 1 April 2016 
 
Different to the National Minimum Wage which always changes on 1 October every year and has rates for everyone aged 16+, the new National Living Wage is a substantial increase for all workers aged 25+. The minimum you must now pay is £7.20 per hour - much more than the £6.70 minimum wage for all aged 21+ which was effecvtive last October. 
 
Check - and check again - that you are paying the correct rates. If you fall foul, the penalties will be steep and HMRC will name & shame. Not to mention your reputation as a fair employer may also take a beating, even if you didn't do it on purpose.  

TAX YEAR CHANGES 

Tax year 2016 / 2017 
 
Even if your company financial year end is a different date, 6th April is always an important date on the calendar. It's the end / start of the tax year, so changes brought about by the government often take effect now. 
 
A few things (there are more!) that are changing this time - and which we recommend that you should look into to see if they are relevant to you: 
 
Tax and NIC thresholds increase 
Thresholds above which (most) employees pay income tax (20%) and National Insurance (12%) are increasing to £212 and £155 per week respectively (or £917 and £672 per month). The thresholds for 40% (higher) & 45% (additional) tax rates are also increasing.  
The threshold above which Employers' National Insurance contributions (13.8%) are payable is also increasing to £155 per week (or £672 per month), so this should mean savings for both you and your staff. And remember that you do not pay Employers' NIC for anyone under the age of 21. And there are special rules for apprentices too! 
 
Employer's Allowance Towards NIC 
This has been in force for a couple of years now and for 2016/17 the allowance will increase from £2,000 to £3,000 per employer. BUT there's criteria change this time - if you, as a diretcor of your own business, are the only employee on your payroll, you will NOT be allowed to claim this allowance.  
THIS IS NOT AUTOMATICALLY APPLIED - REMEMBER TO TICK THE BOX ON YOUR PAYROLL SOFTWARE ON THE FIRST PAY RUN IN THE NEW TAX YEAR. 
 
As always, we recommend that you speak to your accountant or tax adviser who will be able to offer you the best advice for your circumstances. 
 

KEEPING RECORDS 

What records do I need to keep and how long do I need to keep them? 
 
This is one of the most common questions asked of accountants and bookkeepers. The answer is: 
IT DEPENDS! 
 
But it isn't that complicated really. HMRC have published a 4 page leaflet which clearly details what you need to keep in order to satisfy their rules whether you are a sole trader, partnership or limited company and whether you are VAT registered or not. It's easy to read and is a great start for anyone new in business but also a good check for those who have been in business for a while - things do change and you may even find that you don't need to keep as much 'stuff' as you thought you did. 
 
If you need any help sorting out your old or current paperwork, give us a call. It's what we do! 
And we can take away all the stuff you don't need and have it shredded securely at great rates. 
Total Office Help - Business support where it matters 
 
 
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