You can call us (office hours) Monday to Friday on : 0121 455 8055
 
 

Key changes for payroll

Wages & TaxesKey changes for Employees and Employers

Personal allowance to rise to 11,500 from April 2017. This means that we all would have around £112 per year more in our pocket compared to 2016/17 along with this, the higher tax bracket will rise from £43,000 to £45,000 in April 2017.

Another major change that would affect most employers is a 30p increase from the National Minimum Wage for employees aged 25 or over. The National Living wage (NLW) effective from 1st April is £7.50 an hour. This is a plus point for all those employed at minimum wage. However, this would in turn increase the costs of a business significantly. The NLW may also applicable to apprentices. Strongly recommended to ensure all employees are paid at the right rate before running the April payroll.

On a more positive note, employers still get National Insurance Contribution allowance for the 2017/18 tax year and this has been frozen to £3,000 from 2016-17. Please note, if you’re the director and the only paid employee in the company you won’t be eligible to claim this allowance.

National minimum wage from April 2017:

The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.

You must be at least:

  • School leaving age to get the National Minimum Wage
  • Aged 25 to get the National Living Wage – the minimum wage will still apply for workers aged 24 and under
Age Rate
25 and over £7.50 per hour
21 to 24 £7.05 per hour
18 to 20 £5.60 per hour
Under 18 £4.05 per hour
Apprentice* £3.50 per hour

……………………………………………………………………………………………………………………………..

* Apprentice are entitled to the specified rate if they are aged under 19 or aged 19 or over and in the first year of their apprenticeship. National minimum age applies to apprentice if they are aged above 19 and completed their first year of apprenticeship.

Employers are still eligible to apprentice grants if they meet the criteria and funding for training depending on the age of the apprentice.

Please find more information on the links below:


 

Tags: ,

 

More Posts in All News

 
 

Share this Post