National Living/Minimum Wage Changes from 1 April 2020
From 1 April 2020 the National Living/Minimum Wage rates will increase as follows:
• £8.72 an hour for workers aged 25 and over – previously £8.21
• £8.20 an hour for workers aged 21 to 24 – previously £7.70
• £6.45 an hour for workers aged 18 to 20 – previously £6.15
• £4.55 an hour for workers aged 16 to 17 – previously £4.35
• £4.15 an hour for apprentices under 19 or in their first year – previously £3.90
If you are paying any employees with reference to the National Living/Minimum Wage you will need to amend the hourly rates accordingly.
Employment Allowance Changes from 1 April 2020
The Employment Allowance Flag will be automatically switched off in the payroll and a new application will need to be made. Your software will tell you how the process works. You must not deduct any employment allowance until you have received confirmation from HMRC.
Auto-enrolment: There is no change to the minimum contributions from 6 April 2020.
From 6 April 2020 the minimum contribution is 8% with at least 3% from the employer, so contributions should be reviewed to confirm compliance.
For more information see The Pensions Regulator contribution levels guidance here.
If you have any questions on the above, please do not hesitate to contact me.