Changes to the National Minimum Wage
(23/07/10)
The Government has confirmed a number of changes to the National Minimum Wage (NMW), which will take effect in October 2010.
NMW rates to rise
On 1 October the main adult rate of the NMW, which currently applies to those aged 22 and over, will rise by 2.2%, taking it from £5.80 to £5.93 an hour. In addition, as previously announced, the main adult rate will be extended to include 21 year old workers. The other NMW rates are also set to increase, as set out in the table below.
New rate for apprentices
Apprentices will become entitled to a minimum wage rate for the first time in October, following the Government’s acceptance of recommendations from the Low Pay Commission. The new wage will apply to apprentices who are under the age of 19, or those aged 19 and over who are in the first year of their apprenticeship.
National Minimum Wage rates
| |
22 and
over* |
18-21* |
16 and
17 |
Apprentices |
From 1 Oct 09 |
£5.80 |
£4.83 |
£3.57 |
n/a |
From 1 Oct 10 |
£5.93 |
£4.92 |
£3.64 |
£2.50 |
*Main rate applies to those aged 21 and over from 1 October 2010.
NMW enforcement team
Earlier this year, HMRC created a new enforcement team, with the principal aim of cracking down on employers who are failing to pay their employees at the correct NMW rates. The Dynamic Response Team is concentrating on the most complex and high profile cases,
particularly those where employers are using migrant workers and paying them below the minimum wage.
VAT payments made by cheque
From 1 April 2010 all cheque payments made by post are treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account – not the date that the Revenue actually receives the cheque.This means that you must allow enough time for the payment to reach HMRC and clear into HMRC’s bank account no later than the due date shown on your VAT Return.
Previously the VAT was treated as being paid on the working day the cheque reached the VAT Office. HMRC is advising that firms allow at least three working days for the cheque payment to reach them and a further three days for the payment to clear HMRC’s bank account. Bank working days are Monday to Friday and exclude bank holidays.
If the cheque payment does not clear by the due date shown on your VAT return you may be liable to a surcharge for late payment. Businesses making payments by bank giro will not be affected by the change.
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