Not much has been reported about this in recent weeks as the news continues to be dominated by other matters but please note that the NMW has increased to £8.72 per hour a rise of 6%.
The 21-24 year old rate is now £8.20 and 18-20 year old rate is £6.45.
Rates for younger employees and apprentices have also increased (please contact us if you need those rates).
The new rates must be applied when paying staff from 1 April 2020.
Directors minimum pay rate
Director’s typically pay themselves a small basic salary through the PAYE scheme then topped up with dividends to supplement their earnings.
From 6 April 2020, the new basic pay amount is £733 per month; this does not attract any National Insurance or PAYE income tax but importantly will qualify directors for entitlement to State Benefits, including; state pension, maternity allowance, and so on.
Not every limited company operates the above pay scheme for directors, therefore, please contact us if you want specific advice about your own position.