National Minimum Wage Update
As of October 2014 the National Minimum Wage (NMW) will be increasing.
The new hourly rates are as follows:
- Workers aged 21 and over will increase from £6.31 to £6.50
- Workers between the ages of 18-20 will increase from £5.03 to £5.13
- Workers between the ages of 16-17 will increase from £3.72 – £3.79
- Apprentices up to the age of 19, or in their first year of apprenticeship, will increase from £2.68 to £2.73 (unless the rate is specified in the apprentice training contract). If the apprentice is 19 or over and past their first year of training, they will get the rate that applies to their age.
An employee who is paid less than the NMW for any pay period is entitled to be paid arrears by their employer. Arrears are the difference between the remuneration received by the worker and the NMW rate which applied at the time they were underpaid. However, from April 2009, where the current rate of NMW is higher than the rate that applied at the time of underpayment, the arrears are calculated by reference to the current rate.
Failure to pay the correct rate NMW will result in a penalty being issued. From 7 March the penalties have been revised; the penalty percentage has increased from 50% – 100%, with the maximum penalty increasing from £5,000 to £20,000. The penalty is therefore 100% of the total underpayment for all employees affected.
As further deterrent, employers who fail to pay the correct rate will be ‘named and shamed’ under new measures introduced by the Government. If you have any concerns about the NMW, please do not hesitate to get in touch particularly if you are unsure whether the correct NMW rate is being applied to your employees.
Vat Fuel Scale Charges
The new VAT fuel scale charges came into effect from 1 May 2014, please see the following link for full details of the changes; these must be used from the start of the next prescribed accounting period beginning on or after 1 May 2014 http://www.hmrc.gov.uk/vat/forms-rates/rates/rfsc-2014.pdf
Employers Allowance Scheme
Employers can reduce their employer Class 1 National Insurance Contributions (NICs) by up to £2,000 each year through a new scheme known as the ‘Employer Allowance’ scheme.
The allowance is not given automatically, it has to be claimed by employers. If Curle & Company currently provide your business with a payroll service, then this allowance will be claimed for you. However, if your payroll is done in-house or by another provider; please check that a claim is made to avoid losing out.
Once you have opted in, the allowance will be offset against each monthly Class 1 NIC payment that is due to be made to HMRC until the full £2,000 has been used, or the tax year ends.
For example: If your monthly total Class 1 NIC liability is £200 (per month) your full allowance (£2,000) will be used by month 10 in the tax year. You will be required to pay the employers Class 1 NIC liability for months 11 and 12.
The employment allowance applies per employer; therefore, regardless of how many PAYE schemes an employer operates, each employer can only claim one allowance.
Free Employment Law Advice
With businesses more likely to face dismissal or discrimination claims, an increasing number of Employment Tribunals and a deluge of ever-changing legislation, having immediate access to the right Employment Law advice is essential.
Our agreement with ELAS gives you unlimited access to their dedicated team, who are at the end of the phone whenever you need friendly and helpful advice. Whatever the issue, you can rest assured that confidential Employment ELAS advice is just a phone call away – giving you peace of mind that the action you take is correct!
FREE Employment Law Advice Unlimited Access
Available 9am – 5pm Monday – Friday
FREE ADVICE LINE NUMBER 0845 862 8031
As ELAS also provide a wide range of additional business services, you can choose to upgrade to a more comprehensive level of service at preferential rates that we have negotiated.
- July 19
- Postal payments for month ended 5 July should reach your HMRC Accounts Office by this date. If you pay late you may have to pay a late payment penalty.
- Receipt of the Contractors Monthly Returns for month ended 5 July for those under the Construction Industry Scheme is due by this date whether submitted electronically or on paper.
- July 22
- Electronic payments for month ended 5 July must clear into the HMRC bank account by this date. If you pay late you may have to pay a late payment penalty.
- July 31
- Companies House filing date for companies with a year end of 31 October 2013.
Keep in Touch
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This newsletter is also available on our website at www.curleco.com
If you would like your business featured on our website as ‘Business of the Month’ or would like us to share any important information or memorable events etc about your business or employees please contact Gareth Curle on 01236 82272