National Minimum Wage increase – Are you prepared for next April?
The Autumn Budget confirmed that the National Living and National Minimum Wage would be increasing next year from 1 April.
The new rates will be as follows from this date:
|23 and over
|21 to 22
|18 to 20
|April 2021 (current rate)
Businesses have several months to prepare for these new rates and so they must get their payroll ready to deal with these changes.
Remember, failing to pay the minimum wage could result in your business being fined and named and shamed publicly by HM Revenue & Customs.
Common payroll mistakes when it comes to the National Living and National Minimum Wage include:
- Including tips
- Failing to change the rate of pay after birthdays
- Deductions from wages for uniforms
- Overtime miscalculations
- Paying the apprentice rate to somebody who isn’t an apprentice
- Paying the apprenticeship rate after some finishes their apprenticeship
- Making wage deductions that are for the employer’s benefit, including deductions for parties or events
- Paying the wrong rate due to accommodation
If you would like assistance preparing for this change, including help calculating the impact on your employment costs, contact our experienced team.