National minimum wage rates rise

Written by yasiradnan94
4 November 2021

The national living wage (NLW) will rise to £9.50 per hour for pay periods starting on and after 1.4.22 along with the other national minimum wage rates (see table). Since 6.4.21 the NLW rate has applied to workers aged 23 and over.

The apprentice rate will rise significantly by 11.9% to £4.81 and will be aligned with the rate for employees aged 16 and 17. This will help employers who will not have to have a formal apprenticeship agreement in place for trainees under 18 to pay the correct amount of NMW.

Older apprentices do need a formal apprenticeship agreement. Keep a sharp eye on your employees’ birthdays to ensure that any rise in the NMW rate is implemented for the pay period that begins after they move into a different age category.

You can claim a £3,000 incentive for each apprentice hired before midnight on 31.1.22.

Anyone employed through the Kickstart scheme must be paid the NMW relevant to their age. Employers must apply for funding to pay employees on the Kickstart scheme before 17.12.21 but the start date for new employees on the scheme has been extended to 31.3.22.

Hourly rate for pay periods starting fromNLW aged 23 +£/hrage 21 & 22£/hrage 18 to 20£/hrage 16 &17£/hrApprentice rate£/hr
1.4.229.509.186.834.814.81
1.4.218.918.366.564.624.30

Cash basis to replace accruals

Cash basis to replace accruals for the self-employed as standard tax reporting method for 2024-25 (first year of tax year accounting). From April 2024, as part of a move to simplify calculation of taxable profits for Making Tax Digital, all self-employed taxpayers and...

Company car charging at home

HMRC has updated its Employment Income Manual to bring the guidance on charging electric company cars at home in line with the legislation.

Flexibility of paternity leave from 6th April 2024

New fathers who are employees will benefit from greater flexibility when taking paternity leave from the start of the new tax year.

Related Posts

Holiday Pay Changes

Holiday Pay Changes

If you engage part time workers, or staff who work irregular hours, on permanent contracts you need to be aware of new rules.

MTD simplification

MTD simplification

A dramatic simplification of the MTD processes to be introduced – no EOPS; cumulative submissions each quarter; and restrictions.

Cash basis to replace accruals

Cash basis to replace accruals

Cash basis to replace accruals for the self-employed as standard tax reporting method for 2024-25 (first year of tax year accounting). From April 2024, as part of a move to simplify calculation of taxable profits for Making Tax Digital, all self-employed taxpayers and...

We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.