National Minimum Wage

If you are a starting up a new business or an existing one looking to expand you need to be aware of legislation around national minimum rates of pay. Employing people is always complicated and one thing that will lead to immediate problems are errors in pay or breaking minimum pay rates. Local authorities and the Government have a policy of naming and shaming offenders and that is not an area you want your business to be involved in.

So here’ s a simple overview of current national rates and please remember they will be reviewed and most likely changed each year so you need to keep on top of things.

Firsty the hourly rate for the minimum wage depends on the age of the person you are employing (another thing you need to keep an eye on as time goes by). It is also different if the person is an apprentice.

You have to be older than the school leaving age to qualify for the National Minimum Wage and 25 or over to qualify for the National Living Wage.

Current rates

These rates are the current rate for the National Living Wage and the National Minimum Wage.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2017 £7.50 £7.05 £5.60 £4.05 £3.50

 

As we said before they will change every year in April as the new tax year begins unless they are frozen in the budget which seems unlikely.

So as an employer you need to be aware of age changes, position changes (e.g. when an apprentice becomes an employee) and current legislation.

Payroll

As this is just one area that effects how your payroll is calculated and there are many more such as overtime, PAYE, pensions, student loans and sick pay to name just a few, it may be sensible to outsource your payroll services if you don’t have the expertise in house. It is generally low cost and can help you manage the legislation more easily than trying to do it all yourself.

MCC Accountants would be happy to discuss any payroll service requirements you may have so please feel free to send us an email or give us a call outlining the type of payroll issues you are facing in your business.