[email protected]

  • Buxton 0129 822 108
  • Chesterfield 01246 277 266
  • Rotherham 01709 377 909
  • Sheffield 01142 664 432
  • Knaresborough 01423 787 616
  • About SMH
  • Our People
  • Testimonials
  • Contact
  • Blog
  • Client Area
  • About SMH
  • Our People
  • Testimonials
  • Contact
  • Blog
  • Client Area
Dec 10
Gov.uk

Changes to the National Minimum and Living Wages

  • December 10, 2020
  • SMH Chartered Accountants

One of the announcements to come out of the Chancellor’s Spending Review was welcome increases to minimum wages.

From 1 April 2021, the National Living Wage will get a 19p increase, going up to £8.91 per hour, with this rate being extended to employees aged 23 and over. It currently applies to employees aged 25 year and over.

The original plan was for a more substantial increase, but the Low Pay Commission advised against this as it would have had a negative effect on businesses already struggling from Covid-19 restrictions. National Minimum Wage rate increases are similarly constrained, although the apprentice rate will go up by 3.6%. Future and current rates are:

AgeFrom 1 April 2021Current
National Living Wage 23 and over (currently 25 and over)£8.91£8.72
National Minimum Wage 21 to 22 (currently 21 to 24)£8.36£8.20
National Minimum Wage 18 to 20£6.56£6.45
National Minimum Wage 16 to 17£4.62£4.55
Apprentices under 19 or in first year£4.30£4.15

Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the rate for their age. The provision of accommodation is the only benefit that counts towards national minimum pay, with the maximum offset increasing to £8.36 per day (£58.52 per week).

What counts as working time?

If you are required to work off-site from the main premises, deciding when to charge for your time is not always straightforward. For example:

  • Count time on standby near the workplace, or waiting to collect goods, meet someone for work or start a job, but not rest breaks.
  • Count time travelling in connection with work (including travelling from one assignment to another) and for training, but not travelling between home and work.

For example, if an employee has an appointment in the morning, then travels to the office to work there she should be paid minimum wage for the duration of the appointment plus the journey to the office. The break she takes for lunch at the office, however, is unpaid.

HMRC has a calculator to check if you paying the correct amounts of National Living Wage and National Minimum.

If you are unsure about anything, feel free to contact our team of Chartered Accountants on 0114 266 4432 or [email protected]

  • Facebook
  • Twitter
  • LinkedIn
  • E-Mail

Related Posts

  • Summer Statement 2020July 9, 2020

Comments are closed.

Categories

  • SMH Capital Allowances
  • SMH Chartered Accountants
  • SMH Chartered Tax Advisers
  • SMH Commercial Finance
  • SMH Contractors
  • SMH Conveyancing
  • SMH Corporate Finance
  • SMH Financial Services
  • SMH Payroll & Pensions
  • SMH Residential Mortgages
  • SMH Wills & Probate
  • Uncategorized
  • VAT
ACCA
ICAEW Chartered Accountants
Chartered institute of taxation
SMH Chartered institute

Our Companies

  • SMH Chartered Accountants
  • SMH Financial Services
  • SMH Wills & Probate
  • SMH Capital Allowances
  • SMH Commercial Finance
  • SMH Residential Mortgages
  • SMH Corporate Finance
  • SMH Contractors

[email protected]

Social

  • Facebook
  • Linkedin
  • Twitter
SFSY EU

Sheffield

5 Westbrook Court, Sharrow Vale Road,
Sheffield, S11 8YZ

0114 266 4432

Chesterfield

82 Saltergate,
Chesterfield, S40 1LG

01246 277 266

SMH Haywood & Co

Knaresborough Technology Park,
Manse Lane, Knaresborough, HG5 8LF

01423 787 616

Rotherham

24-26 Mansfield Road,
Rotherham, S60 2DT

01709 377909

SMH Bullock Woodburn

Norfolk House, Hardwick Square North,
Buxton, Derbyshire, SK17 6PU

01298 22108

SMH Andertons Liversidge & Co

12-14 Percy St, Rotherham S65 1ED

01709 512600

Standard Terms of Business | Legals | Privacy Policy