With the 2018 tax year ending on the 5th April, there has been a number of announcements made by HMRC & the Pension Regulator. The first of which is the increase for the national minimum wage. The changes are as follow:
- 25 & over £7.83 Per Hour
- 21 to 24 £7.38 Per Hour
- 18 – 20 £5.90 Per Hour
- Under 18s £4.20 Per Hour
- Apprentice £3.70 Per Hour
Tax Codes will also be updated from the 6th April 2018 onwards. If you have a tax code ending in L, your tax code will increase by 35. Anyone with a tax code ending in M will have their tax code increased by 39 and anyone with a tax code of N will have an increase of 31. What this will mean is that the employee will have to earn slightly more before income tax & national insurance is deducted from their wage.
The Pensions Regulator has also sent out reminders that the percentage of the deductions taken from eligible employees for their pension contributions will be increasing. The minimum contributions for employees is 3% of their qualifying earnings and the minimum contribution from the employer is now 2% of the employee’s qualifying earnings.
If you require more information on any of the upcoming changes it can be found on the Pension Regulator Website or the HMRC website.
For more information on the professional payroll services we provide click HERE or feel free to contact us using the form below.