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New payroll rates in April 2017

Changes in National Minimum Wage and National Living Wage Around The Corner

If you are a UK employer, then you are reading the right blog. As you are aware, the responsibility of ensuring your employees are paid at least the National Minimum Wage (NMW) and National Living Wage (NLW) lies with you as the employer.


A common pitfall for many businesses is not being aware of the changes and when they come into effect. In light of these findings, the Government has taken action and launched an awareness campaign to encourage employees to check their pay to ensure they are receiving at least the statutory minimum ahead of the NMW and NLW increases which come into effect on 1 April 2017.

The table below summarises the new rates to be aware of:


Year 25 and over £7.50
21 to 24 £7.05
18 to 20 £5.60
Under 18 £4.05
Apprentice £3.50


This will be the second increase in six months to the NMW rates. Going forward, NMW & NLW rates will be reviewed annually in April.

What happens if you get this wrong?

Penalties imposed on employers in breach of the legislation is 200% of the additional amount owed to employees, with a maximum penalty of £20,000 per employee. The penalty is reduced by 50% if the unpaid wages and penalty is paid within 14 days. HM Revenue & Customs will also name and shame employers who are penalised.

We can help!

Are you finding it difficult to keep up with the ever-increasing changes in employment legislation or reaching the point whereby you’re considering outsourcing your payroll function? Our highly experienced team of payroll professionals deal with these issues on a daily basis for clients and can help take away the burden of ensuring your business is compliant with current legislation.

If you would like help with any of the payroll issues in this blog, please contact our payroll team at AP Accounting Solutions Ltd by email or by ringing 07853222375.

 

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