Whilst the overwhelming majority of companies comply and pay the National Minimum/Living Wage rates, it has been identified that certain working practices or employers strict requirements can mean that the actual rate of pay falls below the legal minimums.
From 1st April 2023, the National Living Wage and National Minimum Wage will rise by an average of nearly 10% across the board (9.94%), helping to support the lowest paid workers but potentially causing a further burden on the businesses employing them.
Back in October 2022, we shared the news that PAYE payments can now be paid to HMRC via Direct Debit in a similar way to VAT payments. But recent reports suggest the system is enduring some teething problems which have resulted in firms receiving incorrect penalties for non or late payment or paying twice to try and avoid penalties.
From October 2022, HMRC is extending the ability for companies to make regular payments via Direct Debit, specifically for PAYE and national insurance contribution liabilities.
A court case decided earlier this year has provided a fundamental change to the way that holiday pay is calculated for casual and part time workers. Companies previously paying holiday based on a percentage calculation must now use the calendar method, assessing holiday pay based on the average number of hours worked over the last year.