MINIMUM WAGE INCREASES

The National Minimum Wage (NMW) and National Living Wage (NLW) are the legal minimum wage rates that must be paid to employees. Employers are liable to be penalised for not complying with the NMW and NLW rules.

There are different levels of NMW and NLW, depending on age and whether the employee is an apprentice. The rates are due to increase from 1 April 2020 as shown in the following table:

  FROM 1 APRIL 2019 (£) FROM 1 APRIL 2020 (£)
NLW for workers aged 25 and over 8.21 8.72
NMW main rate for workers aged 21-24 7.70 8.20
NMW 18-20 rate 6.15 6.45
NMW 16-17 rate for workers above school leaving age but under 18 4.35 4.55
NMW apprentice rate * 3.90 4.15

*for apprentices under 19 or 19 or over and in the first year of their apprenticeship

There are no exemptions from paying the NMW on the grounds of the size of the business.

If you would like help with payroll matters please get in touch.

A DECADE OF BIZARRE EXCUSES AND EXPENSE CLAIMS

Vengeful witches and pet hamsters feature in HMRC’s list of imaginative excuses and expense claims, which has been published in the run up to the self assessment deadline.

HMRC has compiled a list of the weirdest unsuccessful excuses from the last decade.

The list includes one taxpayer who claimed their mother-in law was a witch who had cursed them, hamsters and dogs that had eaten the post and a taxpayer who was up a mountain without internet access.

HMRC also reported questionable expense claims including pet food for a Shih Tzu ‘guard dog’ and 250 days of claims for a £4.50 sausage and chips meal.

Commenting on the list, Angela MacDonald, HMRC Director General of Customer Services, said:

‘Each year, we try to make it as easy and simple as possible for our customers to complete their tax returns and the majority make the effort to do their’s right and on time.

‘We always offer help to those who have a genuine excuse for not submitting their return on time. It is unfair to the majority of honest taxpayers when others make bogus claims.’

Internet link: GOV.UK news

HMRC OFFERS TIPS ON AVOIDING SELF ASSESSMENT TAX SCAMS

HMRC is giving information to taxpayers to help them avoid scams ahead of the Self Assessment deadline.

HMRC is warning millions of Self Assessment taxpayers to be aware of fraudsters in the run up to the 31 January deadline.

Over the last year, HMRC received almost 900,000 reports from the taxpayers about suspicious HMRC contact, in the form of phone calls, texts or emails. Of these more than 100,000 were phone scams and over 620,000 reports related to bogus tax rebates.

According to HMRC the most common techniques fraudsters use include phoning taxpayers offering a fake tax refund, or pretending to be HMRC by texting or emailing a link to a false page, where their bank details and money will be stolen. Fraudsters are also known to threaten victims with arrest or imprisonment if a bogus tax bill is not paid immediately.

HMRC’s Customer Protection team identify and close down scams but taxpayers should recognise the signs to avoid becoming victims. HMRC does not contact taxpayers asking for their PIN, password or bank details. Taxpayers are warned that they should never give out private information, reply to text messages, download attachments or click on links in texts or emails which they are not expecting.