Following on from the Chancellors Budget, further changes will affect how you pay your employees from April 2019.
It has been confirmed that the National Living Wage for workers aged 25 and over will be increasing from £7.83 to £8.21 per hour.
The complete list of changes from April are:
|Current Rate||From April 2019|
|National Living Wage||£7.83||£8.21|
|21 to 24 Rate||£7.38||£7.70|
|18 to 20 Rate||£5.90||£6.15|
|Under 18 Rate||£4.20||£4.35|
This also falls in line with the April increase to employee’s and employer’s contribution rates for those on Auto Enrolment pension schemes.
From April 6th 2019, the employer will need to contribute a minimum of 3% with the total contribution equaling 8%, meaning the employee will usually need to contribute the 5% themselves.
Of course, employers can chose to contribute more than the 3% minimum should they wish to, as long as the total contribution reaches 8%.
With these increased costs, it is important for employers to claim up to £3,000 per year off their National Insurance bill if they qualify for Employment Allowance. Employers can backdate their claim to the 2014/15 tax year if they have not previously claimed and are entitled to do so.
Our dedicated payroll team offer a fully-comprehensive service, giving you peace of mind that your payroll is being taken care of efficiently by professionals.
To find out more please visit our website or contact our payroll team on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.