What’s new in the tax year ahead
The Low Pay Commission’s Autumn 2018 report has been published and on the 1st April 2019, the minimum wage will increase again.
The National Minimum Wage (NMW) is the minimum pay per hour most employees are entitled to by law. An employee’s age and if they are an apprentice will determine the rate they will receive.
Current rates
These rates are for the National Living Wage and the National Minimum Wage. The rates change every April.
| Year | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
| April 2018 (current rate) | £7.83 | £7.38 | £5.90 | £4.20 | £3.70 |
| April 2019 | £8.21 | £7.70 | £6.15 | £4.35 | £3.90 |
Hours on pay statements: April 2019
As of April 2019, employers will be legally obliged to show the number of hours that workers are being paid for on their pay statements or payslips. This is one of the many measures coming into force following the Taylor Review to ensure that low paid workers are not exploited.
Further proposals are also being considered in relation to employment rights and the policing of National Minimum Wage and holiday payments – powers that may be handed over to HMRC.
Termination payments: April 2019
Delayed changes in relation to Class 1A National Insurance Contributions (NICs) on termination payments over £30,000 are to be progressed, but it is still unclear how this will take place – apart from in relation to one element of a proposal that was originally set to come into force in April this year. This element means that employers will now have to pay a 13.8% NI tax on amounts exceeding £30,000 if their employees receive tax and NI-free termination payments on that £30,000.
If you have any questions on any of the above, please ask.