Payroll Bulletin Q2 2024

Introduction

As your trusted payroll adviser, we have prepared a summary of key changes that will affect payrolls by jurisdiction.  ​The items noted are, in our opinion, key changes and should not be viewed as an exhaustive list.​

Payroll Updates - Guernsey

The end of Q2 2024 marks the start of the secondary pension scheme in Guernsey. Here is a reminder of the requirements:​

• The requirement to have an offer a pension scheme is being staged over 15 months, starting in July. ​

• Employers with 26 or more staff are required to enrol by 1st July 2024. ​

• The legislation mandates a minimum total contribution rate, initially set at 2%. ​

• Contributions are based on total earnings. Total earnings are defined as anything that attracts social security, e.g. bonuses will be included*. ​

• Employees can choose to opt in or out of the scheme. ​

• Employers must have a scheme in place, irrespective of employee participation.​

* You should seek clarification from your pension provider about the treatment of gross pay that wouldn’t previously attract pension contributions. You might comply if you already contribute more than the minimum total contribution % (>2%). ​

If you would like to find out more about how Offshore can assist with pension set-up and administration, please contact payroll@offshoregroup.gg.​

Payroll Updates - Jersey

Given the stable nature of Jersey payroll, no key changes have been announced since the beginning of 2024.​

Payroll Updates - UK

This time of year means plenty of changes for the UK as we enter the new tax year. Below is a summary of the key factors for consideration:​

• Personal allowances have been frozen at £12,570 ​

• The 40% tax banding now starts at £37,701 and 45% over £125,140 ​

• Class 1 employee National Insurance Contributions have been cut from 10% to 8% ​

• The minimum wage for employees over 21 has increased to £11.44 per hour (previously £10.42). 18- to 20-year-olds will receive £8.60 per hour and under 18’s £6.40 per hour.  ​

• If you still file P11 Ds, they must be filed by 6 July. If you miss the deadline, you will suffer a 5% penalty on the National Insurance due. ​

• HMRC has announced that payrolling taxable benefits will be mandatory starting in April 2026.

Payroll Updates - Isle of Man

The start of Q2 marks the start of a new tax year in the Isle of Man, and following the budget released in February 2024, there are some items to consider. Below is a summary of the key factors for consideration:​

• The higher rate of income tax will increase from 20% to 22%, with the additional income being ring-fenced for the Island’s healthcare services. ​

• The income tax personal allowance will remain at £14,500 for a resident individual and £29,000 for a jointly assessed couple. ​

• For higher earners, the personal allowance will continue to be reduced by £1 for every £2 that a person’s total income is above £100,000 (£200,000 for jointly assessed couples). This means if a person’s total income is £129,000 (£258,000 for jointly assessed couples) or above, their personal allowance will be zero. ​

• The income tax lower rate for individuals will remain at 10%. The threshold at which the higher rate of income tax becomes payable will remain at £6,500 for an individual. ​

• The primary and secondary threshold for Class 1 National Insurance contributions will be increased by 10% to £160 per week. ​

• The upper earnings limit for Class 1 National Insurance contributions will be increased by 8.5% to £938 per week.  
  

​If you want to discuss any upcoming changes outlined above, please contact us at payroll@offshoregroup.gg.