Employment Law Changes From April 2018
You'll need to adjust your payroll ...
POSTED BY ROGER EDDOWES ON 02/04/2018 @ 8:00AM
We're at the start of the new 2018/19 financial year, so I thought I'd let you know about a few employment law changes which have just taken place. You'll need to adjust your payroll ...
Take note of the employment law changes and adjust your payroll accordingly!
copyright: shaunwilkinson / 123rf stock photo
They are significant changes so you need to be aware of them, particularly in the area of employee wages. You don't want to fall foul of HMRC by not abiding by them.
Firstly, the National Minimum Wage and National Living Wage have both gone up:
Age 25 and over – £7.83 per hour
Age 21-24 years old – £7.38 per hour
Age 18-20 – £5.90 per hour
Over compulsory school age but not 18 – £4.20 per hour
Apprentice rate – £3.70 per hour
Secondly, the rates of Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SPP) and Shared Parental Pay (SPP) will all increase from £140.98 to £145.18 per week.
SSP will also increase from 6th April from £89.25 to £92.05 a week. The average weekly earnings limit which an employee must reach to be eligible for these statutory payments rises from £113 to £116 a week.
Next up are tribunals as the maximum basic award rises from £95,211 to £98,922 for unfair dismissal. Also remember, individuals no longer need to pay to lodge a claim with the employment tribunal ... this may lead to an increase in claims.
With effect from 6th April, minimum auto-enrolment contributions will increase. As an employer, you need to contribute at least 2%, whilst the employee is required to contribute 3% themselves through automatic wage deductions.
And finally, with effect from 6th April, payments in lieu of notice upon termination of employment will become subject to income tax and employee National Insurance contributions.
"Would you like to know more?"
If you're uncertain about any of these employment law changes and need further information, do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with a leading firm of accountants, then why not visit our website which you can find at www.essendonaccounts.co.uk and let's see how we can help you!
More about Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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