save a few quid in taxNew National Minimum Wage Increases

On 1st October 2016 the National Minimum Wage rates for the different age bands and for apprentices will increase. All employers need to make sure they are ready.

For clients where we operate their payroll we automatically double check this each pay period.  We would suggest that you need to check that your payroll provider is doing this for you too if you outsource to a third party.  Alternatively if you operate payroll inhouse then perhaps a check of your own working practices may be required in order to make sure you are ready!

  1. Find out more about the new National Minimum Wage rates of pay here
  2. Check you know who is eligible in your organisation
  3. Take the appropriate payroll action.

 

Here is a brief summary in table form by age and year

Year

25 and Over

21 to 24

18 to 20

Under 18

Apprentice

1st Oct 2016

£7.20

£6.95

£5.55

£4.00

£3.40

1st Oct 2015

*NLA did not exist

£6.70

£5.30

£3.87

£3.30

*NLA = National Living Wage came into effect April 2016

 

FACTIt’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records.

If you discover that for whatever reason you have not paid an employee the National Minimum Wage you must pay any arrears immediately.  You can use the National Minimum Wage calculator on HMRC’s website to calculate this and here’s the link Minimum Wage Calculator

It’s better for an employer to sort this out sooner rather than latter if it affects them as HMRC officers have the right to carry out checks at any time and request records.  A disgruntled employee could notify them!

 

For further reference you can assess more detailed information on the  HMRC website  employers’ National Minimum Wage page

 

Disclaimer
This article is for general information only and no action should be taken, or refrained from, as a result of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavour to ensure that the information contained in this article is correct, no liability will be accepted by KMA Accountancy for damages of any kind arising from the contents of this communication, or for any action or decision taken as a result of using any such information.

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