Posts Tagged ‘National Minimum Wage’

National Minimum Wage – changes

Thursday, February 15th, 2018

Please see below a summary of the National Minimum Wage and National Living Wage rates. These are for the current (to 5/4/18) and next (to 5/4/2019) tax years. The majority of workers aged 25 or over are entitled to the National Living Wage.

If you have queries about National Minimum Wage, payroll tax or any other employee/employer tax issues, please contact [email protected] or call 01527 558539.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2017 (current) £7.50 £7.05 £5.60 £4.05 £3.50
April 2018 £7.83 £7.38 £5.90 £4.20 £3.70

National Minimum Wage

Take a look at our video which illustrates the main changes to the National Minimum Wages and National Living Wage



National Minimum Wage changes

Thursday, September 22nd, 2016

From 1 October 2016, the National Minimum Wage (NMW) is increasing and employers need to ensure they are fully compliant with the new rates, which will be in force until 31 March 2017.

The new hourly rates are as follows:

Apprentice Rate – £3.40

16-17 Year Old Rate – £4.00

Youth Development Rate (18-20 year olds) – £5.55

21-24 Year Old Rate – £6.95

The National Living Wage (25 years and over and in place since 1 April 2016) will remain at £7.20 per hour although the Low Pay Commission is due to make recommendations this Autumn on the new rate to be applied from April 2017.

There are penalties for employers who pay below the National Minimum Wage and recent high profile cases have seen HMRC cracking down on those who have paid too little. The government has taken to ‘naming and shaming’ guilty employers as a warning shot to others who fail to pay the correct amounts.

Employers must be careful where employees are in salary sacrifice schemes, such as pension schemes. The amount of salary sacrifice deductions cannot take the employee to below the NMW and so this must be calculated carefully when preparing the payroll.

Note that the National Living Wage is different to the UK Living Wage and the London Living Wage, the latter two being voluntary.

Curo offers a full suite of payroll services and is able to advise on all aspects of payroll issues. To understand how our payroll technicians can help your business, please contact [email protected] or call 01527 558539.

National Minimum Wage

Employers – are you paying the correct National Minimum Wage?

Thursday, December 10th, 2015

Increases to the National Minimum Wage (NMW) creates a potentially expensive area of risk for some employers. In the wake of the new minimum adult pay rate rise from £6.50 to £6.70, new Government legislation on NMW means employers risk an up to £20,000 fine for EACH worker they underpay.

According to research by The Department for Business, Innovation and Skills (BIS), who surveyed a 1,000 companies, many are ignorant of the new hourly NMW rates. And more worryingly perhaps, almost half were unaware it’s an offence not to pay the rate or falsify records.

If an employer isn’t paying the correct rate an employee can initiate formal grievance procedures and make an official complaint to HMRC who will investigate it.

The age related rates from 01/10/2015 are:

21 and over – £6.70

18 to 20 – £5.30

Under 18 – £3.87

Apprentice* – £3.30

*This rate applies to apprentices aged 16 to 18 and those aged 19 or over, in their first year of the apprenticeship. All other apprentices are entitled to the National Minimum Wage that relates to their age.

So while making yourself aware of the changes and how they can affect your business is crucial, so too is getting your accounts in order.

Here are a few things we recommend:

Review your payroll – It is imperative you review your employee hourly rates to make sure they will meet the NMW rates. Minimum wage rates are age-based, so the ages of your workers are an important factor, so your systems need to be able to take birthdays into account and update or adjust accordingly. Also be aware that the mandatory National Living Wage comes into effect from April 2016, set at £7.20 an hour for workers aged 25 and above.

Look at your contracts – Include a stipulation in your employee contracts they will be paid the NMW.

Use the support tools available to you – The Government operates a Pay and Work Rights Helpline on 0800 917 2368 and has lots of useful information and guidance online at as well as an online calculator. The conciliation service ACAS has also developed online tools and guidance. But pick up the phone and talk to your accountant if you feel you’re struggling to cope and want some advice specific to your business.

Benefit from any offsets or exclusions

Some payments made to workers should not be included when the minimum wage is calculated. These include things like the employer paying for an employee’s travel to work. Considerations should also be given to salary sacrifice arrangements, which your accountant or adviser can discuss with you.

Finally there are a number of myths surrounding the NMW. Some untrue myths not to get caught out by include:

  • Staff who work longer hours than shown in their contract are not entitled to the NMW for the extra hours worked
  • Perks of the job such as staff discounts and free meals can be included in NMW calculations
  • Workers over pensionable age are not entitled to the NMW
  • The NMW is only payable to UK nationals.
  • Workers in a probationary period or subject to disciplinary proceedings do not need to be paid NMW

It’s a simple change, but mistakes can now be expensive for employers, so get it right or talk to your accountant and make sure you don’t risk a fine.

Our dedicated employer tax team can help you understand the rules and advise you on how to remain compliant. To discuss these issues in more detail, please contact [email protected] or call Helen on 01527 558539..

National minimum wage increases from 1 October 2015

Tuesday, September 29th, 2015

Announced back in March this year, the National Minimum Wage hourly rates are set to increase as follows with effect from 1 October 2015:

  • Adult rate – up 20p to £6.70
  • 18 – 20 year olds – up 17p to £5.30
  • 16-17 year olds – up 8p to £3.87
  • Apprentice rate up 57p to £3.30 per hour

It is estimated that more than 1.4 million of Britain’s lowest-paid workers are set to benefit from these increases.


National Minimum Wage Changes

Thursday, May 2nd, 2013

The National Minimum Wage rates (NMW) will be increased from 1 October 2013 to the amounts below:

  • adults will increase by 12p to £6.31 an hour;
  • 18-20 year olds will increase by 5p to £5.03 an hour;
  • 16-17 year olds will increase by 4p to £3.72 an hour;
  • apprentices will increase by 3p to £2.68 an hour; and
  • the accommodation offset increases from the current £4.82 to £4.91


May 2013