9 March 2017

Payroll changes in April 2017

We outline the main payroll changes coming into effect from 6 April 2017 that employers need to be aware of.

There are a number of important payroll changes coming into effect from 6 April 2017 that employers need to be aware of, as we outline below:

Scottish Rate of Income Tax

Employers need to remind their employees of the importance of keeping HMRC informed of their correct and current residential address details, as this is vital in determining whether or not they are a Scottish taxpayer.

Individuals can check and update their address details through their online Personal Tax Account. If they have not yet registered for this service, they can do so quickly and easily here.

Child care vouchers

Annual assessments for every employee using a Child Care Voucher (CCV) scheme must be assessed using the UK base rate.

Apprenticeship Levy

The Apprenticeship Levy will be introduced from 6 April 2017. Aimed at funding apprenticeships across the UK, the scheme will require all UK employers with a gross salary bill over £3 million each year to pay a levy to invest in apprenticeships. The rate will be 0.5% of the employer’s gross pay bill and it is estimated that 2% of employers will be eligible.

National Minimum Wage and Living Wage Rates

The National Minimum Wage and Living Wage Rates will be increased as follows:

National Living Wage 25+ £7.20 to £7.50
National Minimum Wage 21-24 £6.95 to £7.05
  18-20 £5.55 to £5.60
  16-17 £4.00 to £4.05

The National Minimum Wage for an apprentice will increase from £3.40 to £3.50.

Gender pay gap reporting

Employers with over 250 employees, including those working part-time, at 5 April 2017 must now generate reports based on six calculations, as noted below. The employer must also provide a written statement confirming the information is accurate, which must be signed by a senior person (for example, a director). The employer has one calendar year to have all six calculations published on their own website and a designated government website (please note that no details on individual employees will be published).


  • Mean gender pay gap
  • Median gender pay gap
  • Mean bonus pay gap
  • Median bonus pay gap
  • Proportion of males and females receiving bonus payments
  • Proportion of males and females in each quartile band

If you have any questions regarding these upcoming changes and how they may affect you, do not hesitate to get in touch with a member of our payroll team. 

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