Outsourced Payroll

Payroll Reminder: Minimum Wage Increase and National Insurance Reduction

The minimum wage pay rates increase with effect from 1st April 2024 and the 2% cut in employee national insurance contributions will come into effect from 6th April 2024. Your company payroll will need updating accordingly.

Payroll reminder – Minimum Wage Rates Increase on 1st April 2024

It is important to remember that the minimum wage pay rates increase with effect from 1st 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 rate2024/25 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. Our payroll team will be happy to help.

For further information about the minimum wage changes, see https://www.gov.uk/national-minimum-wage-rates

Payroll reminder – National Insurance Rate Reducing from 6th April 2024

From 6th April 2024, a 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 contact us. Our payroll team will be happy to help.

For more information, visit: https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions

How can Leonherman’s Payroll team help you?

Above all, we make sure that our clients’ employees are paid on time, correctly, accurately, and in line with legislation.

Our payroll team can also help you by…

  • Applying the right tax codes (but we cannot change them unless told to by HMRC)
  • Ensuring that the correct amount of tax is taken
  • Ensuring that the right amount of National Insurance is taken
  • Managing sickness pay
  • Parental leave (such as maternity and paternity)
  • Managing payroll queries
  • Processing benefits
  • Providing employee payslips
  • Handling and reporting of deductions to HMRC
  • Pension processing and reporting
  • Keeping up to date with the latest legislation, case law and best practice

If you’d like to find out more about our payroll services, please get in touch with us today by emailing partners@leonherman.co.uk or call us on 0161 249 5040.

Important Disclaimer

This material is published for client information. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. No responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by Leonherman.

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