This month, millions of workers will take home more pay due to a reduction in the national insurance rate.
As announced by the chancellor, Jeremy Hunt, in November 2023, the main National Insurance rate for employees was reduced from 12% to 10% on 6 January 2024.
As an example:
On a salary of £30,000 an employee’s NIC per month was £174.30 at the original 12%, however from 6th January 2024 the new amount of £145.25 will be payable, saving £29.05 per month or £348.60 per year.
The self-employed will receive their reductions from April 2024 and we’ll be sharing more detail on this nearer the time.
In the meantime, you can read the full details on the Government website:
HMRC’s Working Time Regulations were introduced on 1st January 2024, and as promised, the GLX payroll team are pleased to share these details with you.
The main aim of these changes is to simplify holiday entitlement and holiday pay calculations.
They will be particularly relevant for companies with zero/variable hour employees or part-year workers, such as term-time only workers.
It’s important to note that the reinstated 12.07% holiday calculation (based on 28 days of holiday) and rolled-up holiday calculations can only be used for holiday years that start after 1st April 2024.
If your holiday year began on 1st January 2024, you’ll need to wait until January 2025 to implement and continue using your current method.
For full information, you can visit the following link:
If you would like to discuss this further, please don’t hesitate to get in touch.
The Government is proposing to introduce an accrual method to calculate entitlement at 12.07% of hours worked in a pay period for irregular-hour workers and part-year workers in the first year of employment and beyond.
Regular-hours workers, who know their hours, will continue to accrue annual leave in their first year of employment as they do now.
In addition, employers may be permitted to calculate holiday pay for irregular-hours workers and part-year workers using the old method of ‘Rolled Up Holiday Pay’ (RHP) which had previously been deemed as unlawful.
Workers will not be able to request that they receive RHP, it will be the employer’s choice and if used they will be required to calculate a worker’s holiday pay as 12.07% of the worker’s total earnings within a pay period. The employer will be required to pay the worker with each payslip, rather than when the leave is taken and the Government expects employers to clearly mark RHP payments as separate items on each payslip.
These proposals will affect companies whose new holiday year entitlement starts from 1st April 2024 onwards and GLX will be following the progress of these proposals.
You can read more about the proposed changes on the link below and for further information please don’t hesitate to get in contact with the payroll team at GLX to discuss how these changes may affect you and your business.
Running a business presents unique challenges and effective financial management is crucial for long-term success.
Whilst larger companies may choose to hire an in-house finance director, many businesses cannot justify a full-time, permanent position. This may be due to cost, or simply not requiring this provision on a full-time basis, and this is where we come in…..
Outsourcing the finance director role to GLX can be a game-changer, providing expert financial guidance without the cost and administrative burden of a full-time employee. In this article, we discuss the reasons why businesses should consider outsourcing their finance director role.
Cost-Effectiveness:
Hiring a full-time finance director can be a significant financial burden for businesses. Outsourcing this role allows businesses to access the expertise of a financial professional without the costs and administration associated with a permanent employee. Outsourcing offers flexibility in terms of budget and time, allowing businesses to only pay for the services they need, when they need them.
Expertise and Experience:
Accountancy is a complex field that requires specialised knowledge and experience, especially when considering specific regulations and tax laws. By outsourcing the finance director role, businesses can gain access to a team of professionals who possess a deep understanding of financial strategies, tax regulations and industry-specific financial practices. These experts can provide valuable insights and guidance, helping businesses make informed decisions and avoid costly mistakes.
Time-Saving:
Maintaining a successful finance department can be time-consuming, particularly for business owners who already have multiple responsibilities. Outsourcing the finance director role frees up valuable time, allowing business owners to focus on core operations, strategic planning and growth initiatives. By delegating financial responsibilities to experts, business owners can ensure that their financial affairs are in capable hands, whilst they concentrate on other crucial aspects of their business.
Scalability and Flexibility:
Outsourcing the finance director role to a firm like GLX provides businesses with the flexibility to scale their financial management as needed. During periods of growth or expansion, businesses can easily adjust the level of financial support required by tapping into our team of experts. This scalability ensures that financial management aligns with the changing needs of the business, without the hassle of hiring, training, or releasing employees.
Access to Advanced Technology:
Financial management involves the use of sophisticated software and tools that can be complex for businesses to acquire and maintain. By outsourcing the finance director role, businesses gain access to cutting-edge financial technology without the associated costs. This allows them to leverage advanced tools for budgeting, forecasting and financial analysis, enhancing their decision-making capabilities.
Risk Mitigation:
Financial compliance and adhering to regulatory requirements are crucial for businesses to avoid legal issues and penalties. Outsourcing the finance director role ensures that businesses stay up to date with changing regulations and industry standards. Financial experts can help companies navigate complex tax laws, prepare accurate financial statements and ensure compliance with reporting requirements, reducing the risk of costly errors or audits.
Outsourcing the finance director role can be a strategic move for businesses, providing them with access to expert financial guidance, cost savings and increased efficiency. By leveraging the expertise of financial professionals who understand specific regulations, businesses can focus on their core competencies, drive growth and make informed financial decisions. With the flexibility, scalability and advanced technology offered by outsourcing, companies can gain a competitive edge in today’s challenging business landscape.
To discover how our team at GLX can match you with an outsourced finance director, contact us today on 01603 950300 or email info@glx.co.uk