SOCIAL CONTRIBUTIONS

CHARGES SOCIALES

NATIONAL INSURANCE NUMBER

All employees working in the UK or/and having their main place of work in the UK, have to be registered to the National Insurance and get an individual NI Number.

He/she can apply for a National Insurance number if he/she lives in the UK and have the right to work.

How to apply:

• https://www.gov.uk/apply-national-insurance-number

• “National Insurance number application line” 0800 141 2079.

He/she will have to register to local GP as well.

If the employee doesn’t have a British Citizenship, he/she will have to provide proof of the right to work in the UK (pre-settled or settled status from the EU Settlement Scheme etc).

P45 / Starter Checklist Forms

When a new employee joins a UK company, he/she has to present to his/her new employer a P45 form obtained from the previous employer.

If he/she doesn’t have one, he/she will have to complete a Starter Checklist form, available to download on the HMRC’s website.

These forms are sent to the HMRC in order they can trace the employment and allocate Tax codes & NIC codes to the relevant persons.

Tax Code and PAYE

Once a year, each UK employee receives from the HMRC their new tax code, calculated on previous year taxable incomes.

This tax code will have to be made available as soon as possible to the employer in order the PAYE deduction on the payroll is calculated accurately.

If this code is not available yet or not transmitted to the employer, the emergency tax code & tax rate will apply.

STATUTORY SICK PAY (SSP) 2022

(See “Focus On SSP” SEDI’s form for more details)

Your employees may be eligible for Statutory Sick Pay (SSP), if they get sick.

It is highly recommended to secure even a bit more with a complementary Company sick pay scheme and/or an income protection for example.

The 2022 weekly rate of SSP is £96.35 up to 28 weeks.

The first 3 days, being called “waiting days”, are paid at the discretion of the employer.

The SSP Policy in the company has to be disclosed either in the employment contract or in the company handbook when there is one.

The days you’re off sick when you normally would have worked are called ‘qualifying days’.

If you’re eligible, you’ll get SSP for all your qualifying days, except for the first 3.

A sick note is compulsory after 7 days, or before the deadline if there is one.

MILEAGE PAYMENTS FOR BUSINESS TRAVEL

1 mile = 1.609344 Km

Employee Vehicles: Mileage Allowance Payments (MAPs)

MAPs are what you pay your employee for using their own vehicle for business journeys.

You’re allowed to pay your employee a certain amount of MAPs each year without having to report them to HMRC.

This is called an ‘approved amount’.

Car mileage can be reimbursed:

• 45 pence per business mile for the first 10,000 miles (40p before 2011 to 2012).

• 25 pence for each subsequent business mile.

Company Cars – Advisory Fuel Rates from 1st of March 2022

SOCIAL CONTRIBUTIONS

1/ Employer and Employee National Insurance

2/ Pension Scheme

This is called the Automatic Enrolment and each UK employer must pay the correct contributions on time to the employees pension scheme.

If you don’t, you risk being fined by the Pensions Regulator.

Qualifying Earnings Pension Scheme Example

From the 6 April 2019 onwards:

• Total contribution: 8 per cent.

• The employer must pay at least 3%.

• The worker must pay at least 5%.

These percentages will be calculated between the Lower level of qualifying earnings (£520) and the Upper level of qualifying earnings (£4,189).

Please refer to our Pension form to see the different pension schemes available.

We usually use Nest, which is the workplace pension scheme set up by the government.

It’s free for employers, easy to set up and compatible with Automatic Enrolment standards.

NATIONAL MINIMUM WAGE

The rates change every April.

From April 2022:

• £9.50 / hour for employees 25 years old and over.
• From 21–22 years old, it is £9.18 / hour.

INCOME TAX RATE 2022/2023

In England & Northern Ireland

STATUTORY PAID LEAVE

Most workers who work a 5-day week must receive at least 28 days’ paid annual leave a year.

This is the equivalent of 5.6 weeks of holiday.

2022 UK Bank Holidays

Bank holidays do not have to be given as paid leave. An employer can choose to include bank holidays as part of a worker’s statutory annual leave.