This means that from the 1st of April, all workers age 23 and over must be paid the National Living Wage or above. The Chancellor announced this change in last November's Spending Review and it means that the National Living Wage rate increases by 2.2% from £8.72 to £8.91 in April.
"This is a pay rise of £345 for any full-time employee who is on this rate!"
For those aged 21 and 22, the new rate is £8.36, for 18 to 20-year-olds it's £6.56 and for under 18s it is £4.62. The new Apprentice rate is £4.30 per hour. These all come into force on the 1st of April 2021.
So, what do you have to do now? Well, be ready for the change on the 1st of April 2021 and make the necessary changes to your payroll to accommodate the new pay rate of all workers on your payroll who are aged 23 or over.
"Do you need a handholding session?"
One of the services I offer is a handholding session to help you make changes to your payroll ready for the new rates to come into force. I can work with you remotely to ensure the new rates are applied to all your workers and ensure your first payroll in April goes smoothly.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the national living wage increase, or maybe need a handholding session to get your payroll ready, then get in touch? Do give me a call on 01604 420057 and let's see how I can help you.
Alison loves bookkeeping. She has been helping clients to be better bookkeepers in Sage 50 for over 22 years and has more recently added Xero Accreditation to her list of skills.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with running two network marketing businesses and is also a Regional Leader for 4Networking as she likes to keep busy.
You know what they say, if you want something done well ask a busy person!
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