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
Guernsey's adult minimum wage will rise from £10.65 to £12 effective 1 October 2024.
The minimum wage for under 18’s will increase from £9.65 to £10.80 on the effective date.
The start of Q4 2024 marks the start of the secondary pension scheme in Guernsey for employers with 11-25 employees.
The legislation mandates a minimum total contribution rate, initially set at 2%.
Contributions are based on total earnings. Total earnings is 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. If you contribute more than the minimum total contribution % already (>2%), then you might already comply.
Payroll Updates - Jersey
Given the stable nature of Jersey payroll, there have been no key changes since those announced at the beginning of 2024.
Jersey's minimum wage is set to increase to £13 from April 2025. This is higher than the equivalents in Guernsey (£12) and Isle of Man (£11.45).
Payroll Updates - United Kingdom
As we move to Q3 of the UK tax year the number of changes is significantly less than earlier periods, however, with a new government regime and the first budget due in November, there could be some significant changes – watch this space!
Labour’s manifesto suggests that there will be no changes to National Insurance rates or auto enrolment obligations.
Labour promised no increases to income tax rates but they also made no proposals to increase tax bands. Many people will move into a higher tax bracket simply due to rising wages. The Government intends to keep tax bands frozen at their current thresholds until 2028.
We are confident that the National minimum wage will increase in November. Forecasts are suggesting it could be as high as £12.39 with no age bandings applied.
HMRC have continued to highlight that payrolling taxable benefits will be mandatory from April 2026. Remember you have to register before April for it to be live in the next tax year. We would recommend doing this effective 2025.
The threshold for the High-Income Child Benefit Charge increased to £60,000, with a taper up to £80,000. If an employee incomes comes between £60,000 and £80,000 it may be in their financial interest to claim Child Benefit. The tax charge is 1% of the Child Benefit award for every £200 of income between £60,000 and £80,000. If an employee’s income is over £80,000 the charge is the same as the Child Benefit they have received.
Seasonal employees- if the employer have staff who will be working for less than three months, employer can use postponement to delay assessing those employees. This pauses the duty to assess those staff until the end of the three-month postponement period.
Payroll Updates - Isle Of Man
Given the stable nature of IOM payroll, there have been no key changes since those announced at the beginning of 2024.
If you want to discuss any upcoming changes outlined above, please get in touch with us at payroll@offshoregroup.gg.
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