Feb 2021

22

Plan for Jobs - £1,000 for Traineeships

In the July 2020 Plan for Jobs announced by Chancellor Rishi Sunak, an investment fund of £111 million is available to assist the largest development ever for traineeships and employers that provide a traineeship. An employer can claim a £1,000 bonus for each trainee that is enrolled under this new traineeship programme. The new project will help young people learn new skills and experience that will assist them in finding employment or an apprenticeship or equip them for further study options.

Registration for applicants for this scheme can now be made online here. The bonus of £1,000 will be available to employers to claim until 31st July 2021 and will help employers with the traineeship costs such as uniforms, travel cost and providing facilities. The maximum number of trainees an employer can claim under this programme is 10 trainees. Employers can claim this incentive of £1,000 per trainee for any trainee placement they have since 1st September 2020

The traineeship programme period will last for a period of at least 6 weeks and can be as long as 12 months. The programmes will help the trainees develop skills for the workplace such as digital skills in conjunction with English and maths skills. Traineeships will be combined with job placements for a minimum of 70 hours.

Research has shown that traineeship programmes have previously assisted nearly 120,000 young people since 2013 and two thirds of trainees either progress to employment or study further or partake in an apprenticeship within six months of completing the traineeship programme.

This scheme encourages and assists employers to help train or educate young people in conjunction with the apprenticeship scheme. Under the apprenticeship scheme employers can claim £2,000 for any new apprentice aged under 25 that is hired and £1,500 for any new apprentice aged 25 or older. This scheme will end in March 2021 and over 10,000 have already availed of this scheme.

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Posted byDebbie ClarkeinPay/Wage


Feb 2021

12

Minimum Wage Increase on 1st April 2021

The Low Pay Commission’s recommendations for the new National Minimum Wage were approved by Government and these new wage rates will come into effect on the 1st April 2021. The National Living Wage of £8.91 per hour will now be paid to employees aged 23 years and over instead of the previous age threshold of 25 years and older. This is an increase of 2.2% from £8.72.

The National Minimum Wage (NMW) is the minimum pay per hour most employees are entitled to by law. An employee's age and if they are an apprentice will determine the rate they will receive. The hourly rate for the minimum wage depends on an employee's age and whether they are an apprentice:

  • The apprentice rate is applicable to apprentices aged under 19 and those aged 19 or over when they are in the first year of their apprenticeship
  • Employees under 23 years old are entitled to the National Minimum Wage
  • Employees aged 23 or over are entitled to the National Living Wage

Rates from 1 April 2021 will be:

Minimum wage rates

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Posted byDebbie ClarkeinPay/WagePayroll


Jan 2021

26

New Proposed Statutory Payment Rates Announced for 2021-22

As there was no Autumn Statement or Budget from Chancellor Rishi Sunak, the financial secretary to the Treasury, Jesse Norman announced a written ministerial statement in the House of Commons with details of the increase of the National Insurance thresholds. The 2020 Autumn Spending Review confirmed that the personal tax allowance and tax basic rate threshold would increase by 0.5%. This is based on the consumer price index.

This would mean that the personal tax allowance for 2021-22 would increase by £70 from £12,500 to £12,570 and the tax basic rate threshold for 2021-22 would increase to £37,700 from £37,500.

The annual National Insurance threshold for Small Employer’ Relief remains at £45,000.

Please see some rates details below:

Statutory Adoption Pay

2020-21  2021-22
Earnings threshold £120.00 £120.00
Standard rate £151.20 £151.97
     

Statutory Maternity Pay

2020-21   2021-22 
Earnings Threshold  £120.00  £120.00 
Standard Rate  £151.20  £151.97 
     

Statutory Paternity Pay 

2020-21   2021-22 
Earnings Threshold  £120.00  £120.00 
Standard Rate  £151.20  £151.97 
     

Statutory Shared Parental Pay

2020-21   2021-22 
Earnings Threshold  £120.00  £120.00 
Standard Rate  £151.20  £151.97 
     

Statutory Sick Pay 

 2020-21  2021-22 
Earnings Threshold £120.00 £120.00
Standard Rate £95.85 £96.35

Posted byDebbie ClarkeinPay/Wage


Nov 2020

18

New Real Living Wage Rates Announced

The Living Wage Week took place from 9th to 15th November 2020 and as part of this week the new living wage rates details were announced. The new rates apply to employees aged 18 years of age and older from 9th November 2020, but employers who are already part of this scheme will have six months to apply the new pay rises.

The new London Real Living Wage announced by the Living Wage Foundation, has increased by 10p from £10.75 to £10.85 per hour. This helps reflect the higher cost of living facing families in the city. The UK Living Wage rate has increased by 20p from £9.30 to £9.50, an increase of 2.1%. The Government's current national minimum wage for over 25s is £8.72, which is £78p less than this rate.

It is estimated that over 250,000 employees will be affected by the new real living wage increase. An employee working 37.5 hours per week being paid the new Living Wage rate of £9.50 will earn more than £1,500 more annually compared to an employee on the current national minimum wage for over 25s. And an employee working the same hours per week in London being paid the new Living Wage rate of £10.85 will earn more than £4,000 per year compared to an employee on the national minimum wage for over 25s.

The total number of accredited Living Wage organisations is nearly at 7,000. Over 800 employers have been accredited by the Living Wage Foundation since the start of the Coronavirus pandemic. New companies that have signed up include Capital One, Tate & Lyle and All England Lawn Tennis Club.

An upgrade to BrightPay payroll software has now been released catering for the new Living Wage rates. For information about the Living Wage Foundation visit the Living Wage Foundation website here.

Posted byDebbie ClarkeinPay/Wage


Mar 2020

13

Budget 2020 – An Employer Focus

Chancellor of the Exchequer Rishi Sunak presented Budget 2020 to Parliament on 11th March 2020. The main points to be noted by employers are:

  • The personal tax allowance will remain the same at £12,500 for the new tax year 2020-21.
  • There are no changes to the PAYE tax thresholds from 6th April 2020.
  • The National Insurance threshold will increase by £868, from £8,632 to £9,500 for 2020-21.
  • The Employment Allowance has increased to £4,000 from £3,000 for eligible employers. 
  • From April 2020 the government will restrict the Employment Allowance to employers with an employer National Insurance contributions (NICs) bill below £100,000 in the previous tax year.
  • Employees aged 25 and over will receive the National Living Wage of £8.72 an hour and it was announced that it is planned that the National Living Wage (NLW) will increase by two thirds by 2024 that will equate to £10.50 per hour.
  • In relation to the Coronavirus, as previously announced by the Prime Minister Statutory Sick Pay (SSP) will be paid from the first day of sick leave rather than day four and the government will refund Statutory Sick Pay for 14 days to employers with less than 250 employees. 
  • A temporary Coronavirus Business Interruption Loan Scheme will be available for businesses from the government to help pay employees’ wages and business costs.

Posted byDebbie ClarkeinPay/Wage


Jan 2018

12

2018-19 Rates and Thresholds for Employers

For 2018-19 the new personal allowance for an employee is £11,850.


The 20% PAYE tax threshold is for annual earnings up to £34,500.


The UK higher tax rate of 40% is on annual earnings from £34,501 to £150,000.


The UK additional tax rate is 45% on annual earnings over £150,001.


For the new tax year 2018-19, the Department for Work and Pensions have published the statutory payment rates for benefits and pensions.


Click here to see the full list published.

 

Please see some rates details below:


Posted byDebbie ClarkeinPay/Wage


Jan 2018

5

The UK’s gender pay gap has risen. Here’s how you can help.

The Prime Minister has announced that she is taking action to close the pay gap between male and female employees and ultimately improve workplace equality.

This push being taken by the Prime Minister came after new figures were published. The figures showed that the UK’s overall gender pay gap has risen to 18.4%. Interestingly, the gap for full time workers has fallen from 9.4% in 2016 to 9.1% in 2017.

By law, businesses with 250 plus employees must report the pay gaps and bonus data as a mandatory requirement.

In a bid to seal the gender pay gap The Prime Minister is now asking all companies for their help.

“The gender pay gap isn’t going to close on its own – we all need to be taking sustained action to make sure we address this.”

Here are some of the recommended ways that all businesses can help:

  • Ensure there are female representatives at senior level. This can be achieved by ensuring there are opportunities to progress for females within a company. This can also be achieved by introducing a return to work scheme for women.
  • Publish gender pay gap information. This can prove helpful in closing the gender pay gap if all companies, even those with fewer than 250 employees, publish this information.
  • Make flexible working a reality. This should be advertised with a new position from the start.

 

 

 

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Posted byCailin ReillyinPay/Wage


Dec 2017

18

Minimum Wage Increase on 1st April 2018

The Low Pay Commission’s Autumn 2017 report has been published and on the 1st April 2018, the minimum wage will increase again.


The National Minimum Wage (NMW) is the minimum pay per hour most employees are entitled to by law. An employee's age and if they are an apprentice will determine the rate they will receive.

 

Posted byDebbie ClarkeinPay/Wage


Sep 2017

26

42 Year Low in UK Unemployment

The UK's unemployment rate has fallen to its lowest level since 1975, according to official figures which also show a growing gap between price rises and wage growth. The unemployment rate fell to 4.3% in the three months to July, down from 4.4% in the previous quarter and 4.9% a year earlier.

The employment rate, which measures the proportion of people aged 16- 64 in work, hit 75.3% - the highest since comparable records began in 1971. In total, there are 32.1 million people at work in the UK, according to the figures, or 181,000 more than the previous quarter.

While that performance suggests the labour market is continuing to shrug off uncertainties and other headwinds in the wake of the Brexit vote, the figures also highlighted a worsening squeeze for family budgets. It is also reported that average wage growth remained static at an annual rate of 2.1% over the same three months. With inflation coming in at 2.9%, the real value of wage growth is falling.

Posted byCaoimhe ByrneinEmployment UpdatePay/WageWages


May 2017

29

Hiring An Apprentice:

If you are considering employing an apprentice there are some things you should know:

 

  • An apprentice will be aged 16 or over
  • An apprentice must be paid at least the minimum wage for their age  
  • An apprentice must work with experienced staff, learn job specific skills and study for a work based qualification during the working week
  • An apprentice must work for at least 16 hours per week and will usually work for 30 hours
  • An apprentice must be paid for time spent training or studying
  • An apprentice must be provided with the same conditions as other employees i.e. paid holiday, sick pay and any benefits such as childcare voucher schemes.

 

If you employ an apprentice you may be eligible for an apprenticeship grant of £1,500 if you have less than 50 employees and your apprentice is aged between 16 and 24.  

If you are providing the training you can apply for training funding to cover some or all of the training costs.  Further information is available on the HMRC website.

Employers who have an apprentice will not be required to pay employers National Insurance Contributions (NICs) on their earnings if they are under 25, earning below £45,000 and on an approved UK government apprenticeship.  National Insurance category ‘H’ is to be used for apprentices under 25 in qualifying circumstances.

Posted byCaoimhe ByrneinHMRCNICPay/WageWages