Moore Thompson :: Payroll and HR Bulletin

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Welcome to the Moore Thompson Payroll and HR Bulletin

Welcome to Moore Thompson’s Payroll and HR Bulletin, our regular publication to keep you up to date with news and information on payroll and HR issues.

In this edition, we look at issues relating to the new living wage, the gender pay gap, NI changes and workplace pensions.

If you have any feedback on our Payroll and HR Bulletin, please contact please contact Katie Hewlett @ katie@mooret.co.uk or on 01775 711333

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New living wage could close horticultural businesses

According to a new report from the National Farmers’ Union (NFU), horticultural businesses will be made uncompetitive and unprofitable within four years by the introduction of the New Living Wage (NLW) coming in April this year at a rate of £7.20 per hour.

This is because horticultural crops have unusually high seasonal labour requirements and wage costs can account for 60 per cent of turnover. The report forecasts that over the next five years the cost of the NLW to horticultural businesses would be between 129 per cent and 158 per cent of current profit, rendering them unprofitable very quickly.

UK gender pay gap has narrowed, but is still above OECD average

The long-running pay gap between men and women working in the UK has narrowed of late, but a recent report claims that the gap is still higher than the Organisation of Economic Cooperation and Development (OECD) average.

The UK’s gender pay gap has shrunk dramatically since 2000, but a study, titled the Women in Work index, claims that the gap remains the 21st largest out of 33 OECD countries.

LITRG calls for delay on National Insurance changes for self employed

The Low Incomes Tax Reform Group (LITRG) has asked the Government to delay changes to national insurance contributions (NICs) for the self-employed to ensure the impact is fair and those affected understand the implications.

The 2015 Budget confirmed the Government’s intention to abolish Class 2 NICs. This means that instead of paying two classes of NICs (Class 2 and Class 4), the self-employed will pay just one (Class 4) in the future.

Regulator warns of ‘master trust’ pension scheme risks

Thousands of workers who have been encouraged by the government to take out pension plans could be at risk of losing their savings, according to Pensions Regulator.

The news follows fears that dozens of companies providing auto enrolment pensions are too small to survive. Independent experts claim the problem could affect up to a quarter of a million people a year who are putting their savings into so-called ‘master trust’ pensions.