• Skip to main content
  • Skip to primary sidebar

DFC Accountants

Accountancy and Business Services in Cardiff, Wales

  • home
  • privacy statement
  • how we can help
    • accountancy
    • bookkeeping
    • VAT
    • payroll
    • taxation
    • share dealing losses
    • exit or succession planning
    • solutions for you
  • digital tax
  • meet the team
  • wealth management
  • advisory
  • news & updates
  • Login
  • contact us

NMW rates – 01/04/2021

1st April 2021 by

The National Minimum Wage (NMW) and the National Living Wage (NLW) rates rise for pay periods starting on or after 1 April 2021, but this year there is also a change in the age qualification for the top two bands.

The NLW rate now applies to workers aged 23 and over, which previously applied only for workers age 25 and older. This means the next band down now applies to workers aged 21 and 22, not 21 to 24 inclusive. This represents a significant cost increase for employers who employ workers aged 23 and 24.

Where employers have a salary sacrifice scheme in place, perhaps for employer provided bicycles, they need to check there is still the headroom in the wages calculation, after the salary reduction has been taken, to leave at least the NLW in place for those younger workers.

The current NLW and NMW rates are:

Employers must also retain all NMW and NLW records for six years instead of three years from April 2021.

Written by the Tax Advice Network

Filed Under: Uncategorised

Primary Sidebar

Contact Us

02920 448 120
julie.burrows@dfcaccountancy.co.uk
Address:
2 Alexandra Gate
Ffordd Pengam
Cardiff, Wales, CF24 2SA

News & Blog

  • Changes to VAT return wording – 08/04/2021 8th April 2021
  • VAT Partial exemption concession – 08/04/2021 8th April 2021
  • New rules for accounting records – 06/04/2021 6th April 2021
  • NMW rates – 01/04/2021 1st April 2021
  • New tax year – 01/04/2021 1st April 2021

© 2021 DFC Accountants Ltd · Site by The Clever Web Company

Address: 2 Alexandra Gate, Ffordd Pengam, Cardiff, Wales, CF24 2SA
Email: julie.burrows@dfcaccountancy.co.uk