Don’t forget – the National Living Wage and Minimum Wage go up in April
Changes to the National Living Wage and Minimum Wage
If you are an employer, you will be familiar with both the National Living Wage and the National Minimum Wage. The National Living Wage is the minimum you can pay a worker aged 25 or over (except those in the first year of an apprenticeship). This is currently set at £7.20 per hour, but from 1 April 2017 it will increase to £7.50 per hour.
The National Minimum Wage is the least you can pay a worker or an apprentice aged under 25. From 1 April, it will increase across all bands.
What does this mean for me as an employer?
As an employer, it is vital to make sure you abide by these changes. If you don’t, HMRC has the power to fine you and any arrears will have to be paid back immediately. You also have to keep records for three years, proving you are paying at least the National Living Wage or National Minimum Wage.
However, when calculating these wages for your employees, there are rules about what should be included in the calculations. For example, you can’t include items a worker has bought for the job and which they aren’t refunded for – such as tools, uniform and safety equipment.
On the other hand, you must include items such as repayment of overpaid wages, wage advances or loans, Income Tax and National Insurance contributions and penalty charges for a worker’s misconduct.
If you miscalculate and accidentally pay employees less than they are entitled to, you still run the risk of a major fine and having to pay back arrears.
Speak with a THP Payroll adviser today
So, rather than risk making a mistake, why not talk to us today? Our payroll team are happy to advise you and to help make sure you stay on the right side of the law. Simply get in touch at any of the THP offices, located in Wanstead, Cheam, Chelmsford, Saffron Walden, or in The City and a member of our friendly accounting team can advise you accordingly.
Image credit: https://checkyourpay.campaign.gov.uk/