Employment Tax

National Living Wage/ National Minimum Wage

With effect from April 2019 the rates will increase by 4.9% as follows:

Over 25’s increases from £7.83 to £8.21 per hour

The rate for 21 to 24 year olds increases from £7.38 to £7.70 per hour,

The rate for 18 to 20 year olds increases from £5.90 to £6.15 per hour

The rate for 16 to 17 year olds increases £4.20 to £4.35 per hour and apprentices, rates increase from £3.70 to £3.90 per hour

IR35

To help people comply with the existing rules and bring private sector organisations in line with public-sector bodies and agencies, the government will reform the off-payroll working rules in the private sector. Responsibility for operating the off-payroll working rules will move from individuals to the organisation, agency or other third party engaging the worker. This will be effective from April 2020 but small organisations will be exempt.

Employment Allowance

To ensure the Employment Allowance targets smaller businesses, from April 2020 the government will restrict the allowance to employers with an employer National Insurance contributions (NICs) bill below £100,000 in their previous tax year however it is expected that over 99% of micro-businesses and 93% of small businesses will still be eligible for the allowance.

Apprenticeships

The Government will reduce the contributions for small employers from 10%-5%

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