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What will happen from 1st April 2016?

February 22, 2016

Have you seen the TV adverts about the National Living Wage? Well Carrington Umbrella are definitely taking this on board.

As from 1 April 2016 workers aged 25 and over will be legally entitled to a new minimum pay rate of £7.20 per hour, called the National Living Wage (NLW). Obviously some of our contractors earn more than this anyway but it’s nice to know that everyone is going to receive the minimum.

As we mentioned in an earlier blog the National Living wage is being introduced in stages between now and 2020. April 2016 being the first stage when all employers must pay workers a minimum of £7.20 per hour for employees over 21 years of age. This compares favourably with the current £6.50 per hour for over 21 year olds.

However, remember the National Living wage of £9 per hour will not be implemented until 2020, and will only be given to those aged 25 years and over.

Hopefully businesses are now prepared and the prediction by The Office of Budget Responsibility of a loss of 60,000 jobs will not come to pass. Hopefully the measures the Chancellor has made to reduce corporation tax and increase the new Employment Allowance to £3000 for small firms will have taken affect. As we quoted previously, he has said, “That means a firm will be able to employ four people full time on the new National Living Wage and pay no National Insurance at all.”

So almost 3 million low wage workers will be given a direct boost by the changes, while approximately a further 3 million people could also see an increase in wages as a result.

All this means that companies such as Carrington Umbrella will be working hard to ensure that none of their contractors miss out from the NLW.

Also don’t forget that Carrington Umbrella is The Best PAYE Umbrella Company and our fees are extremely competitive at £11.65 net per week fixed fee. If you join you get 2 weeks free too.

Remember at Carrington you’re not just another Umbrella in the stand!


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