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New National Living Wage

New National Living Wage

New National Living Wage

In April 2016 the governments New National Living Wages will become law.

If you are an employer, you’ll need to make sure you’re paying your employees correctly. From April 2016 all workers aged 25 and over are legally entitled to at least £7.20 per hour.

About the New National Living Wage

The government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.

The New National Living Wage is an essential part of this. It ensures that work pays, and reduces reliance on the state topping up wages through the benefits system.

Employees

If you are 25 and over then you should see the increase in your pay automatically from April, if you currently earn the current national minimum wage for adults of £6.70 per hour then the increase of 50 pence per hour ,if you are a full time worker will make an annual increase of at least £910. Please check your payslip in April to ensure your pay has been automatically increased. If you don’t see a difference you may want to speak to your employer or visit ACAS for more information.

For more information or advice on the above please contact Claytons Accountancy Services Ltd.

Auto Enrolment

Update on Auto Enrolment

Auto Enrolment

Despite many companies and businesses staging dates having been and gone, there is still an alarming number of employers who are unaware of Auto Enrolment.

According to the Pension Regulator, hundreds of thousands of the smallest companies are still lacking the awareness of what auto enrolment entails and don’t even know when their “staging date” is!

Given that many of these companies are small businesses they are likely to have very little or no experience of running a workplace pension, therefore it is essential to start planing well ahead of the staging date.

Once an organisation is clear on it staging date, it will need to start by assessing the eligibility of its workforce (which can be an extremely time consuming task)

As an employer you are legally obliged to automatically enrol your employees into a workplace pension scheme, rather than actively choosing to join your scheme, and if they don’t want to be in , they must actively opt out!

For this reason it is crucial that employees are made aware of the Auto Enrolment from the beginning of the process, and are given all the necessary tools to help them make informed decisions about their future.

The message for small businesses is clear : Auto  Enrolment is coming, the sooner you get to grips with what you need to do, the better off you will be.

For advice and help with the above please contact Clayton’s Accountancy Services Ltd.

NATIONAL MINIMUM WAGE ADVICE

NATIONAL MINIMUM WAGE ADVICE

CHANGES TO NATIONAL MINIMUM WAGE FROM 1ST OCTOBER 2015

The National Minimum Wage rate per hour depends on your age and whether you’re an apprentice – you must be at least school leaving age to get it.

The New Rate From 1st October 2015 are as follows:

Age 21 & over Age 18-20 Under 18 Apprentice Age 16-18 Apprentice Age 19 & over.
£6.70 £5.30 £3.87 £3.30 £3.30

 

These replace the current minimum rates of :

Age 21 & Over Age 18-20 Under 18 Apprentice Age 16-18 Apprentice Age 19 & over. 1st Year Only
£6.50 £5.13 £3.79 £2.73 £2.73

 

The rate for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.

APRIL 2016 sees the introduction of the National Living Age for workers aged 25 and over.

The hourly rate will be £7.20

Please contact Clayton’s Accountancy Services for further National Minimum Wage Advice or any other business accounting matter.