As we enter the new tax year, Your Tax Shop, based in the heart of Ashton-under-Lyne’s town centre, would like to take this opportunity to advise you of the latest employment law changes. The first change affecting the national minimum wage (NMW) rates.

Your Tax Shop can confirm that as of yesterday, 1st April 2019, the national living wage (NLW) for those aged 25 years and over has increased to £8.21 per hour. Minimum wage rates have also increased across the various age categories, rising to £7.70 per hour for 21-24 year olds, £6.15 per hour for 18-20 year olds and £4.35 per hour for those under the age of 18. Your Tax Shop can also confirm that the apprenticeship rate for those under the age of 19 (or 19 and over but in the first year of their apprenticeship), has also increased to £3.90 per hour.

Your Tax Shop can’t stress enough how extremely important it is that you make sure your staff are paid the correct rate. The new changes will apply to all pay periods that begin on or after 1st April 2019. As an employer, it is your duty to ensure that your employee’s salaries are increased in line with the new employment law changes. Failure to abide by the new changes could result in financial penalties, employment tribunals and potentially damage your business’s reputation.

Did you know… from the 6th April 2019, employers will also be required to supply all workers with itemised payslips, which must include the total number of hours worked. This is something Your Tax Shop already do for our clients as we believe this helps the employee to understand their pay much easier! For more information on itemised payslips, read our other blog here:

As well as changes to the national living wage (NLW) and national minimum wage (NMW), Your Tax Shop can also confirm that there will be changes to the minimum pension contributions. From the 6th April 2019, the total minimum contribution must be no less than 8% of qualifying earnings. See the table below which visibly shows the rise in contributions:

Date effective Total minimum contribution Employer minimum contribution Staff contribute the remainder
Current rates 5% 2% Up to 3%
6 April 2019 8% 3% Up to 5%

Do you require any further advice on the latest employment law changes, advice on how to prepare for these changes, or struggling to determine how much your employees should be paid? Your Tax Shop, a multi-award-winning accountancy practice based in Ashton-under-Lyne, can help make sure you are compliant at all times with any of the new changes. Get in touch with one of our tax experts on 0161 339 5689 today!