National Minimum Wage Rates from 1 April 2020
Ross Brinsdon (TLA) • April 1, 2020
Do employee staff in your business? If the answer is yes, this is a reminder that the National Minimum Wage (NMW) and National Living Wage (NLW) rates changed on 1 April 2020; please see the new rates for 2020-2021 year for your information.
National Minimum Wage and National Living Wage rates
The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.You must be at least:
- school leaving age to get the National Minimum Wage
- aged 25 to get the National Living Wage - the minimum wage will still apply for workers aged 24 and under
Current rates
These rates are for the National Living Wage and the National Minimum Wage. The rates change every April.
| Year | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
|---|---|---|---|---|---|
| April 2020 (current rate) | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
| April 2019 to March 2020 | £8.21 | £7.70 | £6.15 | £4.35 | £3.90 |
Apprentices
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19
- aged 19 or over and in the first year of their apprenticeship
Apprentices are entitled to the minimum wage for their age if they both:
- are aged 19 or over
- have completed the first year of their apprenticeship
https://www.gov.uk/national-minimum-wage-rates
If you’re part of a working household that receives tax credits, you may be eligible for a new one-off payment of £500. The new payment is being introduced to provide extra support when the temporary increase in Working Tax Credit ends as planned on 5 April 2021. You may get a one-off, tax-free payment of £500 if, on 2 March 2021, you were getting either: Working Tax Credit Child Tax Credit and were eligible for Working Tax Credit but you did not get a payment because your income is too high to get Working Tax Credit payments You do not need to contact HMRC or apply for the payment. HMRC will contact you by text message or letter in April 2021 to confirm you are eligible. If you are eligible, you should get your payment direct to your bank account by 23 April 2021. HMRC have confirmed that you will not see the payment on the online tax credit service. The payment is non-taxable and will not affect your benefits. You do not need to declare it as income for Self-Assessment tax returns or for tax credit claims and renewals.
The HMRC Portal for Covid-19 related Statutory Sick Pay is now open for claims; 26 May 2020.
Advice on how to assist both employers and employees with the tricky path of redundancy.
How to claim your Self Employment Income Support Scheme (SEISS) Grant from HMRC
New Loan Scheme introduced on 27 April 2020 for small businesses - Quick and Simple Application and Approval Process for Loans up to £ 50,000 (based on 25% of business turnover)
HMRC have extended the employee cut off date to be eligible for furlough pay from 28 February to 19 March 2020
Coronavirus Job Retention Scheme (CJRS) Portal to go live for businesses to claim for their furlough workers pay on 20 April 2020.
Are electronic signatures legally binding?
This post will help determine whether you a Company Director or Self-Employed per HMRC.