Living wage implications: Perrys Chartered Accountants, Central London & Kent
As a network of 7 branches of chartered accountants, Central London and Kent, it goes without saying that we keep abreast of changes to legislation and law pertaining to all aspects of money, tax and finance and how these changes will impact on our clients.
Perrys Chartered Accountants, Central London and Kent explain the changes to the national minimum wage
The new national minimum wage changes that came into effect on 1 October 2015, mean that rates for UK adult workers aged 21 and over have risen by 20p, from £6.50 to £6.70 per hour which is the largest real-terms increase in the national minimum wage since 2007. In addition to the new pay scale for adults, rates were also increased by 17p for 18 to 20 year olds to £5.30 per hour, and by 8p, for 16 to 17 year olds to £3.87 per hour. Apprentices' pay scales have risen by 57p, to £3.30 per hour.
Employers were legally required to ensure that they complied with the changes to the national minimum wage as soon as they came into effect and, although most UK workers were entitled to receive the new rates of pay, some exemptions apply – e.g. voluntary workers and individuals undertaking work experience who are of compulsory school age – and so companies should double check any anomalies with their accountant.
As chartered accountants, Central London and Kent, Perrys provided peace of mind to clients, assessing their payrolls to identify those workers who were entitled to receive the new minimum wage and making sure that they were aware of how the minimum wage is calculated.
What is the new National Living Wage? Perrys Chartered Accountants, Central London and Kent explain
The announcement of a compulsory 'National Living Wage' was described as the "final flourish" of Chancellor George Osborne's extensive summer Budget speech. From April 2016, the National Living Wage will be paid to workers aged 25 and above, initially at £7.20 per hour with a target of it reaching more than £9 per hour by 2020. Although it will effectively give a payrise to 6 million workers, it is anticipated that it will cost 60,000 jobs, according to the Office for Budget Responsibility.
As trusted chartered accountants, Central London and Kent, Perrys will be on hand to assist our clients when these changes come into effect next year. We understand the rationale behind these changes and anticipate that this is likely to have a significant impact on many of our clients, especially SMEs. The Chancellor also indicated that there will be various reductions and adjustments to corporation tax from 2017/18, but this may not be enough to mitigate the effect on smaller businesses straight away.
Perrys – chartered accountants, Central London and Kent – for all your accountancy needs
At Perrys Chartered Accountants we offer our clients a service that is 'exceptional as standard' and we are committed to providing a winning combination of extensive knowledge, clear and proactive advice and value for money.
We have built a reputation for providing robust and effective accountancy and tax planning services to clients of all sizes, from private individuals, sole traders and start-ups to established SMEs and blue chip businesses.
To arrange a free and informal discussion to find out how Perrys Chartered Accountants, Central London and Kent can help you and your business, please call us or visit your nearest branch.