4th April 2024 Posted by - Alexander Accountancy
Payroll reminders
1 – Payroll reminder – minimum wage rates increase on 6th April
It is important to remember that the minimum wage pay rates are increasing with effect from 1 April 2024. Failing to increase to the new rates can result in penalties being charged.
The new minimum wage payment rates are set out below:
| 2023/24 rate | 2024/25 rate | |
| 21 and over (previously 23 and over) | £10.42 | £11.44 |
| 18 to 20 | £7.49 | £8.60 |
| Under 18 | £5.28 | £6.40 |
| Apprentice | £5.28 | £6.40 |
| Accommodation Offset | £9.10 | £9.99 |
If you need help with any aspect of your payroll, please do not hesitate to call us. We will be happy to help!
See: National Minimum Wage Rates
2 – Payroll reminder – National Insurance rate reducing from 6 April
From 6 April 2024, the 2% cut in employee national insurance contributions will come into effect. Employees will now be deducted 8%, rather than 10%, on monthly earnings between £1,048 and £4,189. A 2% deduction on earnings above this amount continues to apply.
There is no change to the rate of employers’ national insurance, which stays at 13.8% on monthly earnings above £758.
It is important that your payroll software is up to date so that it deducts the right amount of national insurance from your staff.
You may need to check with your payroll software provider, or you may need to update your software to make sure that the calculations will be made correctly.
If you need any help with this or any other aspect of your payroll, please call us. We will be happy to help you!
