The Living Wage – Planning Ahead

Living Wage - Planning Ahead advice from Wayne Penlington of Alexander Accountancy Burton

Many small business owners worry about controlling expenditure and, when it comes to employee costs, they quite often don’t plan ahead.  With the introduction of the living wage from next year many businesses will see a dramatic increase in costs with the initial rate of £7.20 per hour increase to £9.00 by 2020.  This comes at the same time Workplace Pensions are being phased in with employer contributions rising to 3% by 2019.  Overall an employer could see the cost of employing someone currently at the national minimum wage rise by 33% over the next 5 years!  That’s a scary increase and some industries, such as hospitality, the care industry and retailers will be affected across a sizeable proportion of their workforce.

At Alexander Accountancy we work with businesses to identify how the changes will impact them, so they can plan ahead and start to make the changes now that will help them navigate through the next few years.  Should you wish to know more please contact us and ask us about our free diagnostic review where we can help you start to plan your way through the forthcoming changes.

Email – wa***@al*******************.uk

Call Burton on Trent – 01283 743851

 

NB: We have a power point presentation that we will be uploading to explain a little further, so make sure to check back in a few days time.