Staying Compliant

A guide to the updated National Minimum Wage and National Living Wage for the new tax year.

As the new tax year approaches, with it comes an update to the National Minimum Wage and National Living Wage and it is imperative that all businesses comply!

The Government announced in November 2023 their acceptance of the Low Pay Commission’s recommendations on minimum wage rates which would see them reach their NLW target first set back in 2019. The target had been for the NLW to equal two thirds of median hourly pay for those aged 21 and over, which has now been achieved by the largest increase in minimum wage in cash terms ever.’

From the 1st of April 2024 employers will be legally required to pay employees at the new rate that applies to them based on their age or whether they are an apprentice.

It is hoped that the increases will reduce poverty and income inequality, while improving the standard of living and financial wellbeing of the population.

New Rates

Check out the new rates below to familiarise yourself with those that will apply to you or your employees.

NMW and NLW rates that come into effect are as follows:

In addition, it is important to note that the National Living Wage which is currently payable to those 23 and older is now being introduced to those 21 and older. Meaning those that are 21 and 22 years old will see their wages increase from £10.18 per hour to £11.44 which is a 12% increase.

Failure to ensure that employees are paid appropriately can result in HMRC issuing penalty charges, so it is important that businesses understand the changes and apply them appropriately to avoid a nasty surprise.

How WBV can help

Do you currently complete the payroll for your business and find it difficult to keep on top of the ever-changing rates and rules? Here at WBV Swansea and Neath we offer a fully comprehensive payroll service provided by our knowledgeable team, who are here to ensure that your business is fully compliant with every aspect of payroll.

Please do not hesitate to get in touch today if you have any queries – WBV Accountants, Swansea and Neath