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News – 10.04.24

Form PF: Are you up to speed with the latest developments?

Through this insight we will bring to your attention the main changes in a bitesize manner so that you can stay abreast of the requirements as they may apply to your firm. … Read more

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US and UK tax on carried interest

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Last updated: 22 Nov 2023

2024 National Living/Minimum Wage – ensure you’re compliant

With the National Living/Minimum Wage set to rise a staggering 9.8% from April 2024, hospitality businesses must enforce the new rates or face serious penalties. Samantha McCarthy shares how a National Living/Minimum Wage review can ensure your business remains compliant.

The National Living/Minimum Wage is a statutory requirement for a minimum hourly wage to be paid to workers in the United Kingdom. Until now, the national living wage has been the minimum wage for Britons over the age of 23, but from next year, it will apply to 21- and 22-year-olds for the first time.

From April 2024, the National Living/Minimum Wage rates are as follows:

The rate for workers aged 21 and over will increase from £10.42 to £11.44
The rate for 18-20 years olds will increase from £7.49 to £8.60
The rate for 16-17 years olds will increase from £5.28 to £6.40
The apprentice rate (for apprentices aged under 19 or in their first year of apprenticeship) will increase from £5.28 to £6.40

Speak to our expert

Samantha McCarthy

+44 (0)20 7556 1227
mccarthys@buzzacott.co.uk
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From April 2024, the National Living/Minimum Wage rates are as follows:

The rate for workers aged 21 and over will increase from £10.42 to £11.44
The rate for 18-20 years olds will increase from £7.49 to £8.60
The rate for 16-17 years olds will increase from £5.28 to £6.40
The apprentice rate (for apprentices aged under 19 or in their first year of apprenticeship) will increase from £5.28 to £6.40

Failure to correctly meet and operate the new rates isn't an option. If identified by HMRC, your organisation could be issued severe penalties and be named and shamed on HMRC’s website. This applies to businesses with arrears of more than £500 in National Living/Minimum Wage payments to their workforce.

For businesses operating tronc schemes, allocations from tronc can't count towards the National Living/Minimum Wage.

Finally, if you require your staff member (the worker) to purchase specific items, such as overalls, then any deductions made from employee pay or payments made to you (the employer) in respect of those items, will also need to be considered for National Living/Minimum Wage purposes, as relayed by Mark Taylor here.

How we can help

How can we help?

We provide hospitality businesses with assurance by offering National Living/Minimum Wage audits. Our reviews will confirm the impact the proposed increases will have on your business, outline any concerns we may have, and advise you on the options available to ensure you meet the demands made by HMRC.

If your organisation operates a tronc scheme, upon request, we’ll analyse your existing processes and provide a detailed report highlighting whether your arrangement correctly provides an exemption to National Insurance Contributions.

Get in touch

Call us today on +44 (0)20 7710 3389 or email troncmaster@buzzacott.co.uk. Alternatively, fill in the form below and a member of our team will be in touch.