Did you know?
As the National Minimum and National Living Wage will increase on 1 April 2019, the ideal time to find out how this will affect your business is now.
What does this mean?
The National Living Wage, which is the statutory minimum pay for employees aged 25 and over, will increase by 4.9%. This means that from April 1 2019, the minimum pay will be £8.21 per hour. Consequently, this change directly affects the National Minimum Wage, if your business employs younger people.
How does this affect your business?
Most UK businesses, including some of those who currently pay their employees above the minimum, will be impacted by this increase. There will be an update for the tax planning associated with the renumeration from your business. Your accountant should be able to provide you with this information to ensure your business is prepared for this change. We would advice that you also check out the new rates and see how they affect you and your employees.
Furthermore, we would also recommend that you notify all your current employees about the National Living and Minimum Wage increase. A salary increase is certainly a positive change, however this will affect your employees in a number of ways:
- Personal allowance increase from £11 500 to £12 500
- Higher rate threshold increase to £50 000
- Tax Code Change (1250L)
- This change may also affect National Insurance contributions
For further information on paying the National Minimum Wage correctly, register for one of HMRC’s free webinars.
Are you a UK business owner? Would you like to ACHIEVE more for your business, maximise profits and minimise stress? To find out how Pentins can help you get the most out of your business, talk to one of our expert advisers. Book a Discovery Call.