National Living Wage and The National Minimum Wage
April 2018 will see an increase in the National Living Wage and The National Minimum Wage we will automatically uplift employee hourly rates to the new National Living Wage and National Minimum Wage rates as per the below table.
| Year | 25 & Over | 21 – 24 | 18 – 20 | Under 18 | Apprentice |
|---|---|---|---|---|---|
| 2018 | £7.83 | £7.38 | £5.90 | £4.20 | £3.70 |
| 2017 | £7.50 | £7.05 | £5.60 | £4.05 | £3.50 |
| 2016 | £7.20 | £6.95 | £5.55 | £4.00 | £3.40 |
Tax Rates and thresholds for employers: 2018 to 2019
The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.
| PAYE tax rates and thresholds | 2018 to 2019 |
|---|---|
| Employee personal allowance | £228 per week £988 per month £11,850 per year |
| UK basic tax rate | 20% on annual earnings above the PAYE tax threshold & up to £34,500 |
| UK higher tax rate | 40% on annual earnings from £34,501 to £150,000 |
| UK additional tax rate | 45% on annual earnings above £150,000 |
Auto-Enrolment
Employee and employer Auto Enrolment Pension minimum contributions rates will increase from 6th April 2018.
What are the minimum auto enrolment contribution rates?
The auto enrolment minimum is initially 2% of which at least 1% must be paid by the employer. In April 2018, this increases to 5% of qualifying earnings of which at least 2% must be paid by the employer. In April 2019 this rises again to of 8% qualifying earnings of which at least 3% must be paid by the employer.
These contributions are set on earnings over £113 per week up to an upper limit of £866 per week. You have the flexibility to pay contributions at a rate that suits your business objectives, subject to these being at least equal to the minimum requirements above.
| Date | Employer minimum contribution | Employee minimum contribution | Total minimum contribution |
|---|---|---|---|
| Before April 5 2018 | 1% | 1% | 2% |
| April 6 2018 – April 5 2019 | 2% | 3% | 5% |
| April 6 2019 onwards | 3% | 5% | 8% |
For more information on this or to arrange a free initial consultation please call us on 0151 608 5702 or get in touch with us here.
