For most of us, hiring and paying staff is an essential part of our business and with changes to the National Living Wage and National Minimum Wage from April 2017, along with changes to some other statutory payments, it is essential for businesses to stay up to date.
Payroll is a time consuming but necessary task. In readiness for the changes our specialists have done the hard work for you, providing an overview to ensure you remain compliant with ever changing employment law.
National Living Wage and National Minimum Wage
From 1 April 2017 both the National Living Wage (NLW) and the National Minimum Wage (NMW) rates will increase. The NMW rates have previously always increased from 1 October. These rates are a legal right which covers workers above compulsory school leaving age.
The new hourly rates from 1 April 2017 are as follows:
- employees aged 25 and over will increase from £7.20 to £7.50
- employees aged between 21-24 will increase from £6.95 to £7.05
- employees aged between 18-20 will increase from £5.55 to £5.60
- employees aged between 16-17 will increase from £4.00 to £4.05
- apprentices up to the age of 19 or in their first year of apprenticeship will increase from £3.40 to £3.50 (unless rate specified in apprentice training contract).
Statutory Maternity, Paternity, Adoption and Shared Parental Pay is increasing to £140.98 per week and Statutory Sick Pay is increasing to £89.35 per week, all with effect from 6 April 2017.
From April 2017 the apprenticeship levy is being introduced for all UK businesses to pay towards the funding of apprenticeship training. All companies are subject to the levy even if they don’t employ any apprentices.
The levy is charged at a rate of 0.5% of your total pay bill. However you only start paying the levy if your total pay bill is more than £3 million a year. If your pay bill is over £3 million there is a levy allowance of £15,000 per year which means the first £15,000 is discounted from the levy bill. If you have connected companies you can only receive one levy allowance.
The levy payment will be calculated and paid to HMRC with your usual monthly PAYE liabilities.
For peace of mind for all your payroll and employment law requirements contact a member of our team on 01228 7111888.