Category: Employer

Comments Off on Smallest Firms Hit by Higher Pension Costs

Smallest Firms Hit by Higher Pension Costs

Smallest Firms Hit by Higher Pension Costs

The Federation of Small Businesses (FSB) warned that the doubling of minimum employer contributions into workplace pensions from 6 April 2018 will “hit the very smallest firms and startups the hardest”. Firms in labour-intensive industries – such as retail, childcare and construction – will reportedly feel the impact most acutely. The FSB claims these sectors … Continued

Comments Off on Are You Sure You or Your Workers Are Self-Employed?

Are You Sure You or Your Workers Are Self-Employed?

Are You Sure You or Your Workers Are Self-Employed?

Last year we reported that the House of Commons Work and Pensions Committee published a report calling on the Government to close the loopholes that allow “bogus” self-employment practices, which burden the welfare state but reduce the tax contributions needed to sustain it. Most of the people working for organisations such as such as Uber, … Continued

Comments Off on One Million Firms Comply with Auto-Enrolment

One Million Firms Comply with Auto-Enrolment

One Million Firms Comply with Auto-Enrolment

The number of employers that have complied with auto-enrolment passed one million for the first time in January 2018. Data released by The Pensions Regulator showed the total number of employers to have completed their declaration of compliance stood at 1,032,567 in the first month of 2018. More than 600,000 employers complied with their duties … Continued

Comments Off on Apprenticeship Levy Leaves Firms Baffled

Apprenticeship Levy Leaves Firms Baffled

Apprenticeship Levy Leaves Firms Baffled

Almost a quarter (23%) of businesses paying the apprenticeship levy has no understanding of how it works – six months after its introduction. 56% of more than 1,400 firms surveyed by the British Chambers of Commerce (BCC) did not expect to recover their payment, despite receiving an annual allowance to offset against the bill. As … Continued

Comments Off on Rising national living wage hits SME profits

Rising national living wage hits SME profits

Rising national living wage hits SME profits

64% of small businesses are seeing profits fall as a result of the national living wage (NLW) rise, according to research. The NLW increased from £7.20 to £7.50 per hour on 1 April 2017. Out of 835 businesses surveyed by the Federation of Small Business (FSB), 39% have put up prices to cope with the … Continued

Comments Off on Under-25s Push For National Living Wage Equality

Under-25s Push For National Living Wage Equality

Under-25s Push For National Living Wage Equality
Age From 1 April 2017 Over 25 £7.50 21 to 24 £7.05 18 to 20 £5.60 16 to 17 £4.05 Apprentices* £3.50 *Rate applies for under-19s or first-year apprentices. Talk to us about your payroll requirements. Contact Sue Stephens.          ">
Workers under the age of 25 are missing out on more than £6,000 a year because they are not entitled to the national living wage (NLW). Charity group Young Women’s Trust polled 4,010 people aged between 18 and 30, finding the average young worker is paid £3.45 an hour less for doing the same work as older people. Over the course of the year, younger workers are receiving £6,279 less than their older colleagues. Apprentices under the age of 25 fall short of the current NLW rate of £7.50 an hour, leaving them £7,280 a year worse off than workers over 25. 83% currently support the idea of raising the minimum wage for apprentices and 79% suggest equal pay by extending the NLW to under-25s. Dr Carole Easton OBE, chief executive for Young Women’s Trust, said: “Much more needs to be done to improve young people’s prospects [...] significantly increasing the apprentice minimum wage and changing the law to ensure under-25s are entitled to the same NLW as everyone else.”

Checks and compliance

It is a legal requirement for all employers to pay their staff the NLW or national minimum wage (NMW). Failure to do so will result in a fine from HMRC and the employer being named by the government.

NMW and NLW rates

Age From 1 April 2017
Over 25 £7.50
21 to 24 £7.05
18 to 20 £5.60
16 to 17 £4.05
Apprentices* £3.50
*Rate applies for under-19s or first-year apprentices. Talk to us about your payroll requirements. Contact Sue Stephens.          
Comments Off on Recruiters working harder to fill vacancies

Recruiters working harder to fill vacancies

Recruiters working harder to fill vacancies

Recruiters are finding it difficult to hire new staff due to increasing competition for highly skilled employees, a study has found. Of 400 recruitment agencies surveyed by IHS Markit for the Recruitment and Employment Confederation (REC), 40% found the availability of temporary staff had got worse in July 2017 compared to the previous month (35%). … Continued

Comments Off on Expenses and benefits deadline looms

Expenses and benefits deadline looms

Expenses and benefits deadline looms

Expenses and benefits not payrolled for the 2016/17 tax year will need to be reported to HMRC by 6 July 2017. Employers can report them by completing specific forms which are available to download on the HMRC website. There are 2 forms to complete – P11D and P11D(b). What to do You need to fill … Continued

Comments Off on Auto-enrolment minimum contribution increases

Auto-enrolment minimum contribution increases

Auto-enrolment minimum contribution increases

By law, under automatic enrolment, minimum pension contributions are required to increase over time on set dates. Increases from the current total minimum contribution of 2% of “qualifying earnings” take place on 6 April 2018, rising to 5%, and on 6 April 2019, reaching a total minimum amount of 8% You can choose to pay … Continued

Comments Off on Real-time Information and PAYE update

Real-time Information and PAYE update

Real-time Information and PAYE update

HMRC are making changes to PAYE so that more people pay the right amount of tax on their income as they earn it. For the c. 41 million Pay As You Earn (PAYE) taxpayers the tax they owe is deducted from their income using information their employer gives to HMRC. HMRC say the new changes … Continued