Preparing For April: Changes To National Minimum Wage
And Living Wage and other payments ...
Posted by Roger Eddowes on 28/03/2022 @ 8:00AM
The National Minimum Wage and National Living Wage are changing and various other increases will start at the beginning of the tax year 2022/23. So what are the new figures now?
Act now to ensure your payroll is updated ready for the increases in the National Minimum Wage!
Remember, there are five National Minimum Wage (NMW) and National Living Wage (NLW) bands and you should always account for important anniversaries such as an employee's birthday or an apprentice moving into a second year.
"Also, note when individuals are being paid and account for the changes accordingly!"
As an example, if your employees get paid monthly on the 15th, the old rate will apply for that pay period and the increases will apply after the 16th, for the next pay period. It may be worthwhile explaining this to your staff before you get any grumbles.
From the 3rd of April 2022, family-friendly statutory payments also increase, changing to £156.66 rather than the £151.97 (including shared parental, maternity, adoption, paternity, and parental bereavement pay) it was set at previously.
The Lower Earnings Limit (LEL) increases from £120 to £123 from the 6th of April 2022 and Statutory Sick Pay (SSP) grows from £96.35 to £99.35. National Insurance (NI) increases by 1.25% as well.
HMRC has asked all employers to include the words "1.25% uplift in NICs funds NHS, health and social care" on all payslips between the introduction on the 6th of April 2022 until the 5th of April 2023.
"It's a reminder that this has been mandated by the Government!"
We're at the end of March now and April 2022 is nearly upon us. You need to act now to ensure your payroll is updated ready for the increases in the National Minimum Wage and other payments. Remember, different changes apply from different days in early April, so take care to ensure you get everything correct.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the changes to the National Minimum Wage, it may be a great idea to give me a call on 01908 774320 and let's see how I can help you.
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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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