Bedford based small business specialist Andrew Logan of Tax Assist Accountants gives advice on tax & accountancy matters
How much is the National Minimum Wage?
Most workers in the UK over school leaving age are entitled to be paid at least the National Minimum Wage (NMW). There are no exemptions for smaller businesses; they should still pay their workers the NMW. The NMW tends to increase in October each year.
Since October 2014, the rates have been:
£6.50 for workers 21 and over
£5.13 18 – 20 years
£3.79 for 16-17 years, who are above school leaving age but under 18
£2.73 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
But from October 2015, the rates will be as follows:
£6.70 for workers 21 and over
£5.30 18 – 20 years
£3.87 for 16-17 years, who are above school leaving age but under 18
£3.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
It is important to note that these rates, which come into force 1 October 2015, apply to pay reference periods beginning on or after that date.
National living wage
From April 2016, the national living wage will be £7.20 an hour for workers aged 25 and older. The minimum wage will still apply for workers aged 24 and under.
For more information about the topic above please call 01234 326447