With the start of the new tax year, there are a few changes coming up with the national living wage and national minimum wage.
- The National Living Wage is due to increase by 2.2% on 1 April 2021. Currently, the rate is £8.72 per hour and this will rise to £8.91 per hour.
- Also from 1 April 2021, the National Living Wage will be extended to 23 and 24 year olds for the first time. The rate is also going up for those under 23, this is summarised in the table below.
| Previous Rate | New Rate from
01 April 2021 |
|
| National Living Wage ** | £8.72 | £8.91 |
| 21-22 year old Rate * | £8.20 | £8.36 |
| 18-20 year old Rate | £6.45 | £6.56 |
| Under 18 | £4.55 | £4.62 |
| Apprentice | £4.15 | £4.30 |
** Now from ages 23 and over, previously 25 years and over.
* Now 21 to 22 year olds, previously ages 21 to 24 years.
If you have any employees that are affected by this change then you will need to review their pay to make sure that they get paid at the new rates.
If any of this new information affects your PAYE in any way and you wish to discuss these matters in more detail, please do not hesitate to contact us. Please call the office on 01773 881045, Monday to Thursday from 8:30am to 5pm and Friday from 8:30am to 2pm.
