Sorry. You need to upgrade your browser

You are using Internet Explorer 8

This is considered an out of date browser. This website has been developed with modern browsers in mind to allow it to display at its best in a wide variety of viewing situations - including mobile viewing. But we haven't supported older browsers like IE8. Please upgrade to the latest version of Internet Explorer - or try Mozilla Firefox or Google Chrome. Both are excellent browsers.

Thank you.

Chartered Certified Accountants
and Business Advisors

01530 447999

Changes to NMW and NLW from April 1st 2020!

From the 1st April 2020 the National Minimum & National Living Wage rates will increase.

The National Minimum Wage is a legally enforceable minimum level of pay and is the minimum wage that a worker should be paid. The exact level of pay is determined by an employee’s age and whether or not they are employed as an apprentice. All employers have to pay the minimum wage irrespective of the size of their business and correct payment is legally enforceable.

People sometimes ask for the clarification between The National Minimum Wage and The National Living Wage. The difference comes with employee’s ages. The National Minimum Wage is the minimum pay per hour almost all workers are entitled to. The National Living Wage is higher than the National Minimum Wage and workers will receive this if they are 25 and over.

The new rates that the Government are introducing will apply to the next pay period that begins on or after the 1st April 2020.

The new rates are:

National Living Wage - £8.72 per hour for ages 25 and over
National Minimum Wage - £8.20 per hour for ages 21-24
National Minimum Wage - £6.45 per hour for ages 18-20
National Minimum Wage - £4.55 per hour for school leaving age up to 17
National Minimum Wage for apprentices - £4.15 per hour

It should be noted that the rate for apprenticeships is only payable to those apprentices who are under 19 years of age or for those who are 19 and in their first year of apprenticeship. For apprentices who are 19 and over and have completed their first year of their apprenticeship are then entitled to the correct National Minimum Wage relevant to their age.

As an employer you are legally responsible for adopting these new rates into your payroll from 1st April. If your employees currently earn above these rates then there is no legal obligation for you to increase their pay in line with these rates, it only relates to people within these defined age brackets and level of employment.

If this affects you as an employer, we suggest it is good practice to notify your staff in writing of these changes as this demonstrates to your employees you have actioned the changes. It is worth pointing out that the changes in these rates will also feed through to employer obligations for workplace pensions when pay rises are awarded and will need to be actioned accordingly.

At Sence we offer dedicated payroll support to our clients and help guide employers through these changes and other related payroll issues.

11 Mar 2020

« Back to latest news

Latest news

Government Funding & Loan Support Schemes

The Government has, since the start of the pandemic, announced support and funding options available to businesses of al...

Click to read more >

Statutory Sick Pay Rebate Scheme

HMRC have announced that they will launch this scheme online on the 26th May 2020. The scheme will enable employers w...

Click to read more >

COVID-19 Self-Employed Income Support Scheme - what you need to know!

What's happened so far.... HMRC have started contacting those of you who are self-employed who they think could be el...

Click to read more >

Staff Retention Scheme Online Portal Launch

HMRC are expecting to launch the online portal for businesses to register furloughed employees on Monday 20th April ...

Click to read more >

COVID-19 Cash Grants Updates

Here’s a bit of an update we've had this week from North West Leicestershire District Council on the cash grant pay-ou...

Click to read more >

Covid-19 Further updates & measures introduced to help if you are a Self-employed individual and/or Partners of Partnerships

Quick content links Taxable grants Self-Assessment Information VAT Payments Time to Pay Universal Credit ...

Click to read more >

Covid-19 Further updates & measures introduced to help if you are a Director and/or have a Limited Company

Quick content links Self-Assessment Information VAT Payments Time to Pay Universal Credit Business loan i...

Click to read more >

Budget Overview

It seems like an age ago already, but it was only the 11th March when Chancellor Rishi Sunak presented his first Budget....

Click to read more >

COVID-19 - Support for employers and employees

Keeping you updated with where to find the latest information and guidance relating to COVID-19. COVID-19 " Support...

Click to read more >

COVID-19 - Notice to clients

As a responsible business we are looking to support and protect our clients and staff during this current period of unce...

Click to read more >

Home Sweet Home!

Changes to Capital Gains Tax - Applicable if you own more than one home, otherwise a good read! For many, owning and ...

Click to read more >

Changes to NMW and NLW from April 1st 2020!

From the 1st April 2020 the National Minimum & National Living Wage rates will increase. The National Minimum Wag...

Click to read more >

Tax changes for “greener” employer provided cars

There is significant movement in the provision of electric vehicles into the UK market. In the last month the Government...

Click to read more >

How can we help?

 

Submit

Testimonial

If you want peace of mind and a professional service I would highly recommend Sence Accounting.

Paul Flowers
Bow Boutique Limited

Click to read the full testimonial >