HMRC have recently announced a raft of measured aimed at employers to ensure they comply with the requirements to pay the National Minimum and National Living Wages. Specific sectors are being targeted with HMRC doggedly following up on all complaints.
HMRC have publicised a top 10 list of mistakes that employers make when paying employees that can affect the National Minimum Wage rates.
There has been much publicity recently regarding HMRC’s National Minimum Wage enquiry at Iceland Foods Ltd.
As of 1st October 2015, the powers that be decided that everyone in the UK deserved a little pay rise in the annual re-draft of the National Minimum Wage – hurrah! However, a little extra payment will also come by April 2016 with the implementation of a new National Living Wage in the UK to the tune of £7.20 – double hurrah! These extra coppers in the kitty apply just to those of you that are aged 25 and over, but those under 24 years old will still enjoy the increase to their National Minimum Wage. Considering everyone is only getting older however, that little bit extra is definitely something to look forward to in the future. Who knows, by the time some of us are due to hit the quarter century mark, to quote a well-known Mr Delboy Trotter; “This time next year, we’ll be millionaires!”
Managing a payroll includes not only making sure that the correct amount is paid to the members of staff and that their tax is deducted, but also that their national insurance contributions are correctly calculated and paid. NI contributions are important as they build up the entitlement to such benefits as old age pensions and sick pay.
With Alistair Darling's recent budget it looks like national insurance is set to rise next year. If you're an employer this is very significant, as if you choose to process payroll in-house it is your responsibility to deduct the correct amount from your employees wages and pay it to HMRC. Of course, if you choose payroll outsourcing, such as Dataplan Payroll's managed payroll services, then you can guarantee that NI payments will be made accurately and efficiently on your behalf.