Massey Accounting Company

making your business less taxing

National Living Wage to replace National Minimum Wage from April 2016

Leave a comment

The National Living Wage of £7.20 per hour will become the new minimum pay rate for those aged 25 and over starting 1 April 2016.

Slightly confusingly the two terms National Minimum Wage (NMW) and National Living Wage (NLW) will now run in tandem but basically:

If your employees are aged 25 and over they will be entitled to the £7.20 National Living Wage.

Under 25 years old and they will be entitled to the National Minimum Wage of £6.70. Although there are lower rates for those under 21 or on an apprentice scheme. See our post regarding NMW for more details.

It seems that the change needs highlighting because we’ve become accustomed to the NMW rise on 1 October each year. But on 1 April 2016 many of your employees will be entitled to their second pay rise in 6 months. Please be sure to plan for the additional costs and adjust your payroll settings accordingly.

Enjoy saving tax?

We have two videos to help on ourYouTube-logo-full_colorchannel; and for regular tax-tips follow our blog on Google+ or click +Follow at the bottom of this page.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.