New government, new legislation, new payroll

The votes are in, the Conservative Party has won the election, and change is coming.

This may have been dubbed the Brexit Poll, but the Conservative manifesto promises more than just to Get Brexit Done. It pledges a significant amount of change in a variety of areas across the economy and the UK public realm, particularly when it comes to payroll.

To work out how much, we at IRIS have picked through the Conservative manifesto with a fine-toothed comb to highlight the upcoming changes that we believe will impact your payroll the most.

1) Raising the National Living Wage

In the first few months of this new government, plans are in place to increase the National Living Wage to two-thirds of the average earning.

What does this mean for payroll?

This initiative will require some payroll professionals to make extensive changes to their workforce’s wages, potentially increasing admin.

2) Addressing taper problems in doctors’ pensions

There are currently issues with doctors’ pensions resulting in doctors turning down extra shifts for fear of paying higher taxes.

We’ve been promised that within the first 30 days of the new government there will be an urgent review, working with the British Medical Association and Academy of Medical Royal Colleges to tackle this issue with pensions.

What does this mean for payroll?

This plan is going to have a major impact on GPs as professionals managing the payroll will have to accommodate the changes to pensions.

3) Employing more healthcare professionals

There are plans for 6,000 more doctors, 6,000 more primary care professionals on top of the 7,500 extra nurse associates and 20,000 primary care professionals who have already been announced.

What does this mean for payroll?

If you’re a Practice Manager running a GP surgery, this plan may result in you having to onboard a substantial number of additional employees.

4) Increasing teachers’ salaries

Plans to increase teachers’ starting salary to £30,000 are also on the table in a bid to improve our education system.

What does this mean for payroll?

Similar to the National Living wage increase, schools will have to change the wage for a number of their existing and future staff.

5) Raising the National Insurance threshold

Discussions are in place to raise the National Insurance threshold to £9,500 next year – representing a tax cut for 31 million workers.

The ultimate ambition is to ensure that the first £12,500 earnt is completely free of tax.

What does this mean for payroll?

These changes to National Insurance tax mean that your employees’ monthly salary will change, resulting in further work for payroll professionals.

What can you do?

With so many changes to payroll on the horizon, you need a comprehensive payroll solution.

It’s crucial that you’re able to automate payroll processes and that you have an infrastructure in place that can support all the upcoming change.

IRIS has a range of products to support the requirements of your payroll, providing flexible solutions that can support you in keeping up with changing legislation.

However, depending on the resources within your business, managing all this may still be too time-consuming, even with a modern payroll solution.

If so, consider a managed payroll service and completely eliminate your payroll responsibilities by outsourcing to specialists.

The IRIS Outsourced Payroll service was created utilising our 40 years of industry experience within a vast range of sectors to ensure we free up your time and provide you with peace of mind.

For more information on how our IRIS Outsourced Payroll service can help you prepare for the new government’s radical payroll changes, click here.