With 1st April right round the corner, what do you need to do to get ready for the new payroll year? Well, one of the first things you need to look at if you run payroll, is changes to minimum wage rates and new tax codes. Lets, start with the easier part of the two, tax codes. For the 2020/2021 tax year, you will be pleased to know the basic rate tax code is staying the same S1250L as last year (if you are resident in Scotland). This means you are entitled to Personal Allowances of £12,500.
But what about minimum wage rates? These are set to go up to the following rates per hour:
Ages 25 + = £8.72
21-24 = £ £8.20
18 – 20 = £6.45
under 18 = £4.55
Apprentice = £4.15
You must pay at least these rates by law. If your employees are paid over £118 per week, you will also need to look into your obligations to provide pensions to your employees under Automatic Enrolment.
Not sure what to do or when to do it? We provide full payroll services, including Automatic Enrolment. This can be done weekly or monthly to suit your business.
Contact us today for more information.