The National Minimum Wage rates are set to increase from April 2020 and we’re urging employers to take note of the changes:

Year                                       25 & over            21 to 24                18 to 20                Under 18              Apprentice

April 2019 (current)        £8.21                     £7.70                     £6.15                     £4.35                     £3.90

April 2020                           £8.72                     £8.20                     £6.45                     £4.55                     £4.15

A word of warning: if you’re employing an apprentice, check to make sure they meet the apprentice criteria. Apprentices are entitled to an apprentice rate if they’re either aged 19 or under, or over 19 and in their first year of an apprenticeship.

An apprentice is entitled to the minimum wage for their age if they are both aged 19 or over and have completed the first year of their apprenticeship.

We’re urging all employers to ensure they hold correct date of birth information for their employees to ensure the correct rates are applied.

Company car BIKS

From April 2020, electric company cars with zero emissions will not attract a Benefit in Kind charge during the 2020/21 tax year.

Employment Allowance

From April 2020, employers can claim the Employment Allowance if their annual Class 1 National Insurance bill was less than £100,000 in the previous tax year. The EA relief is currently £3,000 but likely to change in the Budget.

If you would like help understanding your employer tax obligations, our team is here to advise. The rates, rules and opportunities change frequently and we can help you get it right and stay off HMRC’s radar.

Please contact [email protected] or [email protected] or call 01527 558539 to find out how we can help your business. We offer advice and solutions on all areas of employer taxation including employee incentivisation, EIS and EMI, company share option schemes and bespoke payroll solutions.

National Minimum Wage