Navigating the National Minimum Wage Changes

Navigating the National Minimum Wage Changes

As businesses are preparing for the upcoming changes to National Minimum Wage (NMW), staying compliant with such wage regulations are paramount. In turn, outsourcing your payroll services will keep your business compliant to ensure you have experts in dealing with matters to avoid any fines.  

As of 1st April 2024, these significant national minimum wage changes will be introduced by the government aiming to ensure fair compensation for workers across different age groups and employment statuses.  

While this is great news for employees, it is important that you’re prepared for the financial impact of your new NMW obligations. As part of our outsourced payroll services, we provide a seamless transition into the new NMW rates, ensuring your compliance with uniformed changes. By partnering with a reputable payroll provider like FT Pay, businesses can navigate NMW changes seamlessly.  

Let’s delve into the specifics of the imminent NMW rates and what they mean for your company’s payroll. 

Age-Based Minimum Wage Rates: The NMW rates in the UK are structured based on age brackets, with different rates applying to different age groups. Here’s a comparison between the current and upcoming rates: 

Ages Before (Current) After (1st April 2024) 
23 and over (NLW) £10.42 £11.44 
21-22* £10.18 £11.44 
18-20 £7.49 £8.60 
Under 18 / Apprentice £5.28 £6.40 


*
Starting from 1st April 2024, workers over the age of 21 will be entitled to the National Living Wage (NLW). 

Our team of experienced payroll operators are on hand to help you navigate any changes and meet your statutory obligations to ensure that your workforce is paid accurately and on time. Considering outsourcing your payroll to us? Find out more about our in-house payroll bureau here.  

As part of FT Pay, our in-house payroll bureau, we have experienced payroll operators who will assist you in navigating the NMW changes. This will ensure you meet your statutory obligations by paying staff the updated amount. FT Pay also includes several other beneficial services that can streamline processes to make sure your business receives the comprehensive support that goes beyond compliance with NMW changes.  

To get in touch about outsourcing your payroll or to enquire about the new NMW update, please don’t hesitate to get in touch with our Commercial Client Director, Fabrice Legris, at @fabricelegris@fiandertovell.co.uk  

Mastering the New Payroll Year 

Mastering the New Payroll Year 

As the calendar flips to the 2024/25 tax year, your business will be gearing up for several year-end processes. One critical aspect that requires dedicated attention, however, is your organisation’s payroll. Preparing for the new payroll year involves more than just updating your calendar and submitting forms; it demands a comprehensive strategy to ensure compliance, efficiency, and accuracy.  

At FT Pay, we’re experienced at dealing with the intricacies of payroll year-end, working with your business to ensure compliance, efficiency, and accuracy. Take a look below at how we can help to navigate your organisation’s payroll year-end. 

1. Ensure your Employee Payroll Records up to date 

First things first, you will need to inform us of any new starters or leavers in the past month. Year-end is the ideal time to make sure that nothing has gone unnoticed throughout the year. Double check that we have been informed of all new starters or employee exits, as these may be harder to correct once we have entered the new payroll year. Similarly, make sure that we have received any updates to any personal information, bank account details, and tax codes across your workforce. 

You will then need to inform us of any discrepancies in your workforce’s pay for March, whether deductions for sick pay, increases for a pay rise or a one-off bonus. 

2. Your final Full Payment Submission (FPS) and Employer Payment Summary (EPS) 

Before closing out on the current payroll year, we must submit your final FPS to HMRC on or before your employee’s last payday of the tax year (which will be on or before 5th April). Your FPS is a monthly report to HMRC informing them of the payments made to your employees and detailing any deductions to their pay for that month.  

When we submit your FPS to HMRC, we’ll also let them know that it’s your organisation’s final payroll submission of the year. As the final FPS of the year, your March report will also include your end of year information, including all the employees you paid in the tax year (since 6th April 2023), no matter how much you have paid them or whether they have left the business. 

We may also need to submit an EPS by 19th April, should you want to claim any payments or reclaim deductions, such as statutory leave or employment allowance. On the rare occasion that no employees were paid in the reporting period, you would only need to submit an EPS (no FPS needed). 

3. Conduct a Year-End Review  

Before finalising the transition into the new payroll year, conduct a thorough year-end review to ensure all necessary tasks have been completed. 

This includes reviewing payroll records, submissions, and compliance documentation to identify any discrepancies or outstanding issues. The deadline to easily correct wrong payments or deductions is 19th April. Following this, a new full FPS submission would be required. 

4. Giving Employees a P60  

We will provide your employees with a P60 form by 31st May, summarising their total pay and deductions for the 2023/24 year. All individuals who are employed by your business on the 5th April must receive a P60 – this is why it’s crucial to ensure that we have the most up to date records before we begin your year-end processes. 

5. Report Expenses and Benefits  

Although you’ll probably be more than ready to wave goodbye to the 2023/24 year, it doesn’t end with the P60 deadline! We will still require the information needed to report your employees’ expenses and benefits by 6th July. Following this, the deadline to pay any Class 1A National Insurance due on the taxable expenses and benefits by 22nd July.  

There are many payroll deadlines throughout the year – you can access our calendar of key payroll dates here: 

If you don’t already outsource your payroll to FTPay, why not consider making the switch entering the new payroll year? Our in-house payroll bureau is staffed by experienced payroll operators, who are eager to assist you in maintaining your payroll, meeting statutory obligations and paying your staff on time. 

To get in touch about your payroll year-end process or to enquire about our outsourced services, please don’t hesitate to get in touch with fabricelegris@fiandertovell.co.uk.