From 1 April 2021 the National Living/Minimum Wage rates will increase as follows:
• £8.91 an hour for workers aged 23 and over – previously £8.72
The National Living wage now applies to workers who are 23 years of age or older (previously 25).
• £8.36 an hour for workers aged 21 to 22 – previously £8.20
• £6.56 an hour for workers aged 18 to 20 – previously £6.45
• £4.62 an hour for workers aged 16 to 17 – previously £4.55
• £4.30 an hour for apprentices under 19 or in their first year – previously £4.15
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 2021
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 can begin using your employment allowance as soon as you submit the application, HMRC will not send you a confirmation letter. If your application is rejected, you will receive an automated message from HMRC within 5 working days.
Auto-enrolment: There is no change to the minimum contributions from 6 April 2021.
From 6 April 2021 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.