How much is the National Minimum Wage?
Most workers in the UK over school leaving age are entitled to be paid at least the National Minimum Wage (NMW). There are no exemptions for smaller businesses; they should still pay their workers the NMW. The NMW tends to increase in October each year.
Since October 2014, the rates have been:
But from October 2015, the rates will be as follows:
It is important to note that these rates, which come into force 1 October 2015, apply to pay reference periods beginning on or after that date.
From April 2016, the national living wage will be £7.20 an hour for workers aged 25 and older. The minimum wage will still apply for workers aged 24 and under.
Does Auto Enrolment apply to my staff?
I employ all part-time staff and as a result, they do not earn very much over the course of a tax year. Could you tell me if I am likely to have anything to do for these new Workplace Pension rules please?
Under the new Workplace Pensions rules, all employers have “duties” towards all of their staff who are:
“Eligible workers” are aged between 22 and state pension age, and earn over £192 a week (2015/16). If you have staff that meet the definition of an eligible worker, they must be put into a workplace pension scheme and you must pay regular pension contributions for them. You don’t need to ask their permission and therefore we refer to them being “automatically enrolled” into the pension scheme.
If you have no staff to automatically enrol, there is no need to set up a pension scheme immediately. However, while your staff may not be eligible for automatic enrolment, they can still ask to go into a pension scheme. If they do this, your responsibilities will depend on how much they earn:
Failure to comply with the Workplace Pensions rules can lead to a fixed penalty of £400 plus escalating penalties starting from £50 per day. Gary can help you ensure your business is compliant. Contact him for more information.
I have received a cheque from my bank for being mis-sold PPI. Is any of it taxable?
The tax due will depend on the different components making up your cheque. Typically, it will consist of:
The simple interest is to compensate you for being deprived during the term of the PPI policy and is taxable- like any normal bank interest is.
Normally, the bank deduct basic rate income tax of 20% before paying you the simple interest. As a result, if once you include the interest in the calculation of your total income you are still a basic rate taxpayer, you should not need to complete a tax return nor have any additional tax to pay on it.
However, if the simple interest is not taxed and exceeds £10,000 or if you are not a basic rate taxpayer, then there could be tax implications and you should confirm with HM Revenue & Customs whether they require a tax return from you. Conversely, if you income is under the personal allowance, you may be due a tax refund.
If you have any further questions, please give Gary a call or drop him an email and he will be happy to complete your tax return for you.
Member since: 17th March 2014
Hello! I'm Penny from thebestof Sudbury, shouting about the best local businesses from Hadleigh through the Clare. When I'm not doing that, you'll find me knitting socks or tending to my 6 chickens
The following Cookies are used on this Site. Users who allow all the Cookies will enjoy the best experience and all functionality on the Site will be available to you.
You can choose to disable any of the Cookies by un-ticking the box below but if you do so your experience with the Site is likely to be diminished.
In order to interact with this site.
To help us to measure how users interact with content and pages on the Site so we can make things better.
To show content from Google Maps.
To show content from YouTube.
To show content from Vimeo.
To share content across multiple platforms.
To view and book events.
To show user avatars and twitter feeds.
To show content from TourMkr.
To interact with Facebook.
To show content from WalkInto.