T O P I C A L I N F O R M A T I O N F R O M M A G E E G A M M O N
Email:
MG@MageeGammon.comWebsite:
www.MageeGammon.comHenwood House, Henwood, Ashford, Kent TN24 8DH Phone: 01233 630000
Principals:
Jon Gammon, Antony Tutt, Mark Britland, Abhi Jain, Roland Parry, Andy Childs
Managers:
David Brookes, Julie Devine, Linda Hayward, Peter Horton, Barry Spokes
Magee Gammon is a trading style of Magee Gammon Partnership LLP and Magee Gammon Corporate Limited.
Registered to carry on audit work in the UK and Ireland, and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
AUTO ENROLMENT REMINDER
We would remind you that the Government is continuing the introduction of
pension membership throughout 2016 and 2017 for all employers called Auto
Enrolment. You should automatically receive notification of your Staging Date
from The Pensions Regulator. You can check your Staging Date on their website:
www.thepensionsregulator.gov.uk/employers/staging-dateIf you would like any help or advice regarding the implementation of
Auto Enrolment please call
Lee Trice
on
01233 630000
.
MG NEWS
Implementing the new National Living Wage
The National Living Wage (NLW) comes into effect in
April 2016, and is set to have a significant impact on
both employers and employees. Here we explore the
NLW in greater detail.
What is the National Living Wage?
The new compulsory NLW was announced in the 2015
Summer Budget by Chancellor George Osborne. Starting from
1 April 2016, the rate will be set at £7.20 an hour for those
employees aged 25 and over. The NLW will give eligible employees
a premium of 50 pence an hour on top of the National Minimum
Wage (NMW). The new wage is expected to rise to £9 an hour by
2020. This is significantly higher than the NMW rate of £6.70 an
hour, which currently applies to employees aged 21 and over.
The NLW is being introduced to help ‘lift the wages of the lowest
paid’ and forms part of the Government’s plan to ‘move to a higher
wage, lower tax and lower welfare society’. It is estimated that
2.7 million people stand to benefit from the introduction of the
NLW. However, for those employees under 25, the appropriate rate
of the NMW will continue to apply.
The NLW should not be confused with the Living Wage, which is a
voluntary wage rate that some employers choose to pay.
Advice for employers
The NLW is likely to have a significant effect on many businesses,
and employers are being urged to take steps now to ensure
that they are ready. To help businesses prepare ahead of the
introduction of the NLW in April 2016, the Government is advising
that firms should:
know the correct rate of pay – £7.20 per hour for staff aged 25
and over
determine which staff are eligible for the new rate
update the company payroll in time for 1 April 2016
communicate the changes to staff as soon as possible.
National Living Wage
From 1 April 2016
Aged 25 and over
£7.20
National Minimum Wage
From 1 October 2015
21 and over*
£6.70
18 – 20
£5.30
16 and 17
£3.87
Apprentices**
£3.30
* 21 – 24 from 1 April 2016. ** Rate applies to apprentices under
19, or those 19 and over in the first year of apprenticeship.
In recognition that the new NLW will increase costs for some
businesses, the Government is raising the amount employers can
claim through the Employment Allowance. From April 2016 the
Employment Allowance will enable employers to reduce the amount
of Class 1 national insurance contributions (NICs) they pay for their
employees by up to £3,000. This is up from the previous allowance
of £2,000. Small businesses and charities particularly stand to gain
from this change.
We can advise on a variety of employment-related issues
– please contact us for further information.
Spring 2016 inside this issue...
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The 2015 Autumn Statement: some key measures
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Under control? The new requirements for companies
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Grandparents set to share parental leave and pay
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Business Round-Up
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Web Watch
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Reminders for your Spring Diary
Property Auctions
Our Property team will be on
hand at the Clive Emson Property
Auctions at Kent County
Showground, Detling in 2016
and will be available to discuss
any issues that you may have.
Next auction date: 17th March 2016.