|Both the National Minimum Wage and the National Living Wage to increase from April 2018.|
|Changes to the Class 2 National Insurance contributions (NIC) to be delayed by a year.|
No big giveaways on the NIC front, but a couple of small announcements tucked away alongside some previously announced upcoming changes:
National Minimum Wage
From April 2018 the National Minimum Wage rates are:
- employees aged 25 and over £7.83
- employees aged between 21-24 – £7.38
- employees aged between 18-20 – £5.90
- employees aged between 16-17 – £4.20
- apprentices up to age 19 or in their first year of apprenticeship – £3.70
The above minimum wage rates are legally enforceable.
From April 2018, the National Living Wage for those aged 25 and over will increase to £7.83. For a full time worker this equates to being approximately £600 better off.
National Insurance contributions
The Government had previously stated that Class 2 NIC was to be abolished from April 2018 onwards and Class 4 NIC, currently 9%, would increase up to 10% from April 2018 and again up to 11% from April 2019. These changes are to be delayed by one year.
The student loan (plan 2) threshold will increase to £25,000 for the 2018/2019 tax year.
If you have any questions on National Insurance or payroll matters our specialists are on hand to help, give them a call on 01228 711888.