Make sure your business is prepared for the National Minimum and Living Wage Increase on 1st of April 2019. From the 1st of April 2019, the national living wage which is the statutory minimum required to be paid to workers aged 25 or over will be increasing by 4.9% to £8.21 per hour.
Click here to view the new rates and how they might impact your business.
The minimum wage rates for young workers will also be increasing to become above the rate of inflation. As a business, you need to make sure that you are prepared for this increase as it will have an impact on your cash flow, your budgeting and also the bottom line of your business. Start by amending your budget to reflect this change, model your product or service pricing to determine if you can still afford to provide your services at the current price. Plan to implement cashflow solutions such as loan arrangements, cash agreements etc. in order to sustain this additional cash strain. Speak to your accountant to make sure a cash flow plan is in place to avoid any nasty surprises, seek advice from them about any payroll changes that might be required to your current setup. It might also be beneficial to speak to your employees and notify them of any changes that they might see on their pay slips from the 1st of April onwards.
Clear House Accountants and specialist Accountants in London who also specialize as Payroll service providers. We operate payroll from end to end for our clients providing them with a complete outsourced payroll related solution. If you have any questions about payroll or are not sure about how to proceed with operating payroll for your employees, please do not hesitate to speak to us.