There are several changes coming into force from 6th April 2019, many of which may affect you and your business. Let’s take a quick look at what 2019 has in store for business owners and their employees.
National Minimum Wage increase.
As announced in the 2018 Budget, both National Living Wage and National Minimum Wage are increasing this spring. Here’s the breakdown:
- Workers aged 25 and over, increase from £7.83 to £8.21 an hour.
- Workers aged 21-24, increase from £7.38 to £7.70 an hour.
- Workers aged 18-20, increase from £5.90 to £6.15 an hour.
- Workers aged over 16 but under 18, increase from £4.20 to £4.35
- Apprenticeships for under 19’s or in the first year of apprenticeship, increase from £3.70 to £3.90 per hour.
Tax allowances and thresholds
Personal allowances increase from £11,850 to £12,500 and higher rate tax starting at £50,000.
Changes to work pensions.
There will be changes to minimum contributions for auto-enrolment pension schemes. Employer contribution is going up from 2% to 3% on employee pre-tax salary whilst workers will see 5% of their earnings go towards pension rather than the previous 3% contribution.
As your payroll agent, we can assist in the calculation of pension contributions and ensure these are correctly processed through the payroll system.
From 2019, the State Pension age will also start to rise. By October 2020 you’ll need to reach at least 66 before you’re eligible for State Pension, going up to 67 between 2026 and 2028.
Changes to Payslips.
Employers will now have to show clearly the number of hours worked on each employee payslip. This is to ensure that each employee understands how many hours they were paid for exactly in each payment period and that they are being accurately rewarded.
If you find that keeping on top of all the changes and new regulations is taking up too much of your precious time, please get in touch with our team. We offer a comprehensive list of services to help you focus on growing your business. From accounts and tax to bookkeeping and payroll, we are here to help.
Call us on 01752 895648.