Category: Employer

Comments Off on Government Announces Apprenticeship Levy Reforms

Government Announces Apprenticeship Levy Reforms

Government Announces Apprenticeship Levy Reforms

Chancellor Philip Hammond has announced a package of new measures to reform the under-fire apprenticeship levy. Under the revised rules, employers who pay the apprenticeship levy will be able to transfer a quarter of their funds to organisations in their supply chain, including smaller employers. Levy-paying businesses have been able to transfer up to 10% … Continued

Comments Off on Apprenticeships Fall 31% in the Last Academic Year

Apprenticeships Fall 31% in the Last Academic Year

Apprenticeships Fall 31% in the Last Academic Year

The number of people starting apprenticeships has dropped by 31% in the last 12 months, the Department for Education has claimed. In the academic year between August 2017 and May 2018 there were 315,900 apprenticeship starts, compared to 457,200 the same time the year before. Business groups including the British Chambers of Commerce (BCC) and … Continued

Comments Off on Working Pensioners Pay £8.6bn in Income Tax

Working Pensioners Pay £8.6bn in Income Tax

Working Pensioners Pay £8.6bn in Income Tax

Working pensioners are on course to pay £8.6 billion in income tax in 2018/19, according to Aegon. The number of pensioner households containing at least one person working beyond their state pension age increased from 12% in 1997/98 to an estimated 17% in 2018/19. Aegon estimates there are around 12.8 million people living in 8.7 … Continued

Comments Off on Deadline For Reporting Benefits in Kind Nears

Deadline For Reporting Benefits in Kind Nears

Deadline For Reporting Benefits in Kind Nears

Most employers are currently getting their houses in order when it comes to reporting employee benefits and expenses ahead of the 6 July 2018 deadline. At the end of the tax year, employers may need to inform HMRC if any taxable benefits were handed out to members of staff over the previous 12 months. These … Continued

Comments Off on Smallest Firms Hit by Higher Pension Costs

Smallest Firms Hit by Higher Pension Costs

Smallest Firms Hit by Higher Pension Costs

The Federation of Small Businesses (FSB) warned that the doubling of minimum employer contributions into workplace pensions from 6 April 2018 will “hit the very smallest firms and startups the hardest”. Firms in labour-intensive industries – such as retail, childcare and construction – will reportedly feel the impact most acutely. The FSB claims these sectors … Continued

Comments Off on Are You Sure You or Your Workers Are Self-Employed?

Are You Sure You or Your Workers Are Self-Employed?

Are You Sure You or Your Workers Are Self-Employed?

Last year we reported that the House of Commons Work and Pensions Committee published a report calling on the Government to close the loopholes that allow “bogus” self-employment practices, which burden the welfare state but reduce the tax contributions needed to sustain it. Most of the people working for organisations such as such as Uber, … Continued

Comments Off on One Million Firms Comply with Auto-Enrolment

One Million Firms Comply with Auto-Enrolment

One Million Firms Comply with Auto-Enrolment

The number of employers that have complied with auto-enrolment passed one million for the first time in January 2018. Data released by The Pensions Regulator showed the total number of employers to have completed their declaration of compliance stood at 1,032,567 in the first month of 2018. More than 600,000 employers complied with their duties … Continued

Comments Off on Apprenticeship Levy Leaves Firms Baffled

Apprenticeship Levy Leaves Firms Baffled

Apprenticeship Levy Leaves Firms Baffled

Almost a quarter (23%) of businesses paying the apprenticeship levy has no understanding of how it works – six months after its introduction. 56% of more than 1,400 firms surveyed by the British Chambers of Commerce (BCC) did not expect to recover their payment, despite receiving an annual allowance to offset against the bill. As … Continued

Comments Off on Rising national living wage hits SME profits

Rising national living wage hits SME profits

Rising national living wage hits SME profits

64% of small businesses are seeing profits fall as a result of the national living wage (NLW) rise, according to research. The NLW increased from £7.20 to £7.50 per hour on 1 April 2017. Out of 835 businesses surveyed by the Federation of Small Business (FSB), 39% have put up prices to cope with the … Continued

Comments Off on Under-25s Push For National Living Wage Equality

Under-25s Push For National Living Wage Equality

Under-25s Push For National Living Wage Equality
Age From 1 April 2017 Over 25 £7.50 21 to 24 £7.05 18 to 20 £5.60 16 to 17 £4.05 Apprentices* £3.50 *Rate applies for under-19s or first-year apprentices. Talk to us about your payroll requirements. Contact Sue Stephens.          ">
Workers under the age of 25 are missing out on more than £6,000 a year because they are not entitled to the national living wage (NLW). Charity group Young Women’s Trust polled 4,010 people aged between 18 and 30, finding the average young worker is paid £3.45 an hour less for doing the same work as older people. Over the course of the year, younger workers are receiving £6,279 less than their older colleagues. Apprentices under the age of 25 fall short of the current NLW rate of £7.50 an hour, leaving them £7,280 a year worse off than workers over 25. 83% currently support the idea of raising the minimum wage for apprentices and 79% suggest equal pay by extending the NLW to under-25s. Dr Carole Easton OBE, chief executive for Young Women’s Trust, said: “Much more needs to be done to improve young people’s prospects [...] significantly increasing the apprentice minimum wage and changing the law to ensure under-25s are entitled to the same NLW as everyone else.”

Checks and compliance

It is a legal requirement for all employers to pay their staff the NLW or national minimum wage (NMW). Failure to do so will result in a fine from HMRC and the employer being named by the government.

NMW and NLW rates

Age From 1 April 2017
Over 25 £7.50
21 to 24 £7.05
18 to 20 £5.60
16 to 17 £4.05
Apprentices* £3.50
*Rate applies for under-19s or first-year apprentices. Talk to us about your payroll requirements. Contact Sue Stephens.