National Minimum Wage

7 Million Taxpayers Submitted Their 2019/20 Self Assessment Tax Returns

This is a rise of 130,000 compared to the same time last year. However the number of people submitting a later return has also increased from 613,000 in 2018/19 to 777,000 in 2019/20 and out of those, some 295,000 taxpayers have yet to submit their returns. The 10. 7 million returns received, along with the 2. 2 million returns submitted in January, represents 31% of all taxpayers. The deadline for submitting returns is 31 January each year, or the date a tax bill is ­issued by HMRC, if earlier.

This was an increase of over 300,000 compared to the same time last year, but represents just a small proportion of around 24 million total individual taxpayers due to submit a Self Assessment tax return for the 2017/18 tax year, The London NET ( The latest figures from HM Revenue and Customs (HMRC) shows that there were 42,818 penalties issued for late submission of Self Assessment tax returns, which equates to an average of 15 per day. In total 10,743,500 tax returns were received by the HMRC before midnight on last Wednesday (31 January).

Fair Piece Rate

Currently, the piece rates that most workers earn is adjusted every two years based on the prices of goods. Employers must not pay their workers on a piece rate basis in any work performed outside of the hours of 6am and 6pm Monday to Friday; or any other time during which a worker is protected from losing their jobs because they are entitled to annual leave, public holiday payment, or night work overtime rate.

". In addition, there is a fair piece rate which means that employers must pay their output workers the minimum wage for every hour they work based on an hourly rate derived from the time it takes a worker working at average speed to produce the work in question. The entitlement of workers paid under this system is uprated by 20%. The Fair piece rate system requires employers pay a minimum wage based on the time it takes a worker working at average speed to do a piece of work.

The time taken is calculated by dividing the number of hours it takes to produce a product into the total number of pieces produced, with a resulting hourly rate. Preventing and addressing gender-based violence against workers in the changing world of work is a collective responsibility. The new legislation on fair piecework and wage payment guarantees the right to an uprated minimum rate based on experience, skills, training or output per given period. The fair piece work scheme is an hourly wage paid for each unit of work produced.

The minimum wage entitlement for this group will be uplifted by 20% and is considered a long term measure to improve the situation of this group who are considered to be at risk of exploitation. This represents a year-on-year increase of 7. 9% for online wage and pension pots. The most commonly observed non-Christian religion is Islam (6. 1 per cent), followed by Hinduism (2. 1 per cent), a Jewish community (0. 7 per cent) and Buddhism (0.

National Minimum Wage

The National Minimum Wage was introduced in 1999. It is a legal requirement for employers to pay all workers a minimum wage. The government sets the NMW rates every year. The 2016/17 rates are:: £6. 70 per hour for adults aged 21 and over; £5. 30 per hour for 18 to 20-year-olds, and £3. 87 for under 18s. The National Minimum Wage (NMW) and National Living Wage (NLW) is the minimum hourly rate that employers must legally pay their staff.

The national minimum wage is currently applicable throughout the UK except for the devolved nations that have their own specific minimum wages. National Minimum Wage (NMW) and National Living Wage (NLW) rules are laws that set the minimum rates of pay for jobs. The term 'Allowances'is used to denote additional payments such as travel expenses, accommodation, overtime, etc. The UK’s National Minimum Wage (NMW) applies to all employees, and it makes it illegal to pay below that rate.

What Are Rates Of The Nmw And Nlw?

The National Minimum Wage and national living wage increases were announced on 22 June 2018. The government has confirmed the level of the increase to the NMW from 1 April 2019 is set at 4. 9 per cent. This is an increase of 50p per hour for employees aged 25 and over, taking the rate to £7. 83 per hour. Exact rate changes will vary slightly based on employee age and if they are eligible for the NLW.

The National Living Wage (NLW) and National Minimum Wage (NMW) are the legal minimum pay per hour for most workers aged 25 and over. If you are aged 21 to 24 inclusive the NLW and NMW also apply to you, although you may be entitled to the Youth Allowance or Young Person's Allowance at a lower rate. To find more information go to GOV. UK. The NLW is a legal minimum wage, applicable to most workers between the ages of 18-20.

There are different rates of the NLW depending on your age and whether you are an apprentice under 19 years. For workers aged 16-17 years old, there are no separate lower rates available; NMW will apply only. Age     (Years)  National Minimum Wage (NMW)  All workers, 21 and over  Apprentice rate     Under 18  £4. 20 per hour  £3. 70 per hour  £3. 70 per hour       Under 20  £4. 35 per hour £3.

What Is The National Living Wage?

The National Living Wage (NLW) is a legal minimum pay rate for workers aged 25 years and above. This is assured by a Government's National Minimum Wage Act which sets the rate and establishes other legal parameters for enforcement. The National Living Wage (NLW) replaced the National Minimum Wage (NMW) as the new wage floor from 1st April 2016. What is the National Living Wage (NLW)? The National Living Wage (NLW) works alongside the National Minimum Wage (NMW).

  It's higher than the NMW because it's set to reflect the true cost of living in the UK from April 2016. It's based on estimates of what people need to earn in order to have a basic but acceptable standard of living. The National Living Wage came into effect on April 1st 2016 and replaced the NMW. The NLW will be interesting to enterprises who have employees who are aged 25 or older and who are not receiving the London Living Wage (LLW).

The NMW was a basic minimum wage for workers over the age of 21 years and under the age of 25 years. Who needs to pay the National Living Wage? Your business must pay each employee aged 25 years or over the National Living Wage if they are: an employee who works at least 30 hours per week; or an apprentice aged 16-18 working in the first year of their apprenticeship. 90 per hour £3.

What Records Are Needed To Demonstrate Compliance?

The records which must be kept are the dates of the pay periods, the gross and net amount paid to each employee including details of deductions made for FICA tax. If the correct rate of NMW is being paid employees can be asked to sign a ‘self-certification’ form confirming they have been paid the right levels. There should also always be an up-to-date employment contract or group of contracts which refer to the rate of pay and procedures for repayment in the event of errors.

A copy of HMRC Order 2010 should also exist. In this context a single pay statement for each employee which details particulars of the hourly rate of pay and the basic hours to which it applies is normally considered sufficient. However, you should be aware that in recent years both the Tribunal and HMRC have sought more detailed information where they suspected employees were being paid less than the NMW. complete records of hours worked and wages paid would normally suffice as appropriate payroll records.

Where workers are engaged on individual contracts for services, evidence of the actual hours worked is unlikely to be required so long as it can be shown that payments have been made at a rate that would cover the NMW had it been applicable. There is no precise requirement. HMRC have stated that records of written contracts, working hours, copies of payslips or timesheets and the rates and method of payment will all be helpful as evidence.

Where levels of pay are significantly above the level of the NMW, special records are not likely to be necessary. Bear in mind that there is no precise requirement and that the records will only be required by the HMRC if it is not satisfied that the correct payment has been made. Where levels of pay are significantly above the NMW, special records are not likely to be necessary. It is always prudent to keep good records of the pay and hours worked by employees as this protects both the employer and employee in the event of an HMRC enquiry.

What Rights Do Workers Have?

Workers are entitled to; a written statement of particulars within 2 months of starting employment, Entitlement to paid holidays, National minimum wage of at least £6. 19 per hour, Maximum 48-hour working week unless average breaks it down over an 8-week period, a maximum of 10 hours per work day and 48 hours per work week (Legal maximum), Statutory sick pay if sick for 4 days in a row (first week not paid), Pay in lieu of notice if you hand in an official notice stating the date on which you will leave your job, Statutory maternity and paternity leave and pay.

A worker has the right to know how much they are being paid. Written evidence of the rate of pay or method of calculation must be provided if a worker asks for it. It is good practice, however, to issue written wage statements regularly to all workers (eg workers paid by the hour). What rights do workers have?. Workers are allowed to see their own pay records and can complain to an Employment Tribunal if not able to do so.

Laura Grace

Laura Grace

Main Contributor and Editor of The London NET