By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants. The Money Matters column appears in the Pembrokeshire Herald, the Carmarthenshire Herald and the Llanelli Herald newspapers.
In last week’s Money Matters column, we included some useful advice from the taxman at HMRC on reporting payroll information accurately and on time.
This week, we turn our attention to the National Living Wage and National Minimum Wage.
We pose the question: are you paying the correct rate?
The National Living Wage (NLW) and National Minimum Wage (NMW) rates have increased. More than two million people were entitled to an above-inflation pay rise when the new rates came into force.
If you are not paying the correct rate, you may receive a Notice of Underpayment from HMRC, setting out the arrears to be paid to your workers together with a penalty.
Employers may also be publicly named.
The new rates must be applied from the first day of the first pay period on or after 1 April 2018 and are as follows:
Those aged:
– 25 and over are entitled to at least £7.83 per hour (previously £7.50 per hour)
– 21 to 24 are entitled to at least £7.38 per hour (previously £7.05 per hour)
– 18 to 20 are entitled to at least £5.90 per hour (previously £5.60 per hour)
– Under 18 are entitled to at least £4.20 per hour (previously £4.05 per hour).
Apprentices are entitled to the Apprentice rate of £3.70 per hour (previously £3.50 per hour) if they are:
- Aged under 19
- Aged 19 or over and in the first year of their apprenticeship.
Apprentices aged 19 or over who have completed the first year of apprenticeship are also entitled to the age-related minimum wage:
– 19 to 20 year olds are entitled to at least £5.90 per hour
– 21 to 24 year olds are entitled to at least £7.38 per hour
– 25 year olds and over are entitled to at least £7.83 per hour.
The Government is currently running a campaign advising workers to check their pay and complain if they are being paid incorrectly.
If you need any advice on NLW and NMW rates, then please contact the team at Clay Shaw Butler.
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) –
http://www.clayshawbutler.com/news/latest-news-for-business
We have a strong and experienced team with great local knowledge all geared-up to helping you get the very best from your finances – whether that is as an individual or as a business.
We stay ahead of the game by putting great store by continual professional development for our staff.
With Investors In People status at Clay Shaw Butler, we care passionately about making sure our staff have all the tools they need to serve you, our customers.
Weblink – http://www.clayshawbutler.com
The team at Clay Shaw Butler can be contacted on 01267 228500.
The team at Clay Shaw Butler are on Twitter. Look for @clayshawbutler.
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