16 March 2016

Are you ready for the National Living Wage?

From April 2016, the Government will introduce a new mandatory national living wage (NLW) for workers aged 25 and above, initially set at £7.20 – a rise of 50p relative to the current National Minimum Wage (NMW) rate. That’s a £910 per annum increase in earnings for a full-time worker on the current NMW.
The adult NMW rate is currently £6.70. From 1 April 2016 the premium will come into effect on top of the NMW, taking the national living wage to £7.20. The NMW will continue to apply for those aged 21 to 24, with the premium added on top for those aged 25 and over, taking the total hourly rate to the national living wage

Above is an excerpt from HMRC site www.livingwage.gov.uk

Who is responsible for ensuring that the employer calculates the correct NLW?

The employer is solely responsible for paying the NLW.

What you will need to do to be ready?

Review all employees’ wages and make sure that they are paid at least the NLW.

What you need to tell Taxsense Accountants Limited?

If we prepare payroll for your employees you must tell us the hourly rate you have agreed to pay each employee, and you must ensure it is no less than the NLW.

Need guidance?

Contact Rachel Labercombe Rachel@helpboxuk.comor by telephone 02392 388 003.

Source: New feed