FOR THE WORKERS

Payroll Updates

Here we are, getting close to the end of the tax year, doesn’t time fly when you’re having fun? Lots of changes going on for the world of business and for the workers its good news for some, it’s the time of the National Minimum Wage increases.

The following rates are for the National Living Wage and the National Minimum Wage:

Age

25 & Over

21-24

18-20

16 & 17

Apprentices

From 1 April 2019

£8.21

£7.70

£6.15

£4.35

£3.90

As well as the above increases, the basic personal allowance is also increasing from £11,850 to £12,500. That’s an extra £650.00 per year we can earn tax free! Not necessarily a huge increase but who can complain at a few extra pounds in the bank?

Pension Updates

So even though we have minimum wage and personal allowance increases, you may find that you do not receive as many extra pounds in your pocket as you would have hoped as there are also increases to the auto-enrolment pension from 6 April 2019.

Currently, from 6 April 2018 your employers pay a minimum of 2% into your Auto Enrolment pension pot. You lucky ones, where your employer pays in more than the minimum contributions, you may only then pay in the difference to meet the total minimum requirement of 5%. Everyone else is paying in the 3% to meet this requirement.

From 6 April 2019, the employer minimum is increasing to 3%, and the total minimum contributions are increasing to 8%. Therefore for the employer’s only paying in the minimum, the employee now has to contribute 5% of their salary.

Overall a few changes to the new tax year, I am sure there will be a few more after 29th March, but lots to look forward to!

Aisling Zaganjori MAAT

Accounts Senior