Current
From April 2019
Increase
NLW
£8.21
£7.83
4.9%
21-24 rate
£7.70
£7.38
4.3%
18-20 rate
£6.15
£5.90
4.2%
16-17 rate
£4.35
£4.20
3.6%
Apprentice rate
£3.90
£3.70
5.4%
Accommodation offset
£7.55
£7.00
7.9%
The LPC 2018 Report, containing the underpinning analysis and evidence used to make these recommendations, will be published on 27 November. In previous years it has been published on the same day as the rates were announced, but the early Budget means that this has not been possible this year.
Off-payroll working in the private sector
From April 2020 the government will extend reforms to the off-payroll working rules (known as IR35) in the private sector. This follows consultation held earlier this year following the roll-out of reform in the public sector. Responsibility for operating the off-payroll working rules will move from individuals to the organisation, agency or other third party engaging the worker. Small organisations will be exempt, minimising administrative burdens for the smallest engagers. HMRC intend to work with stakeholders through the delivery of another consultation in a bid to provide support and guidance to medium and large organisations ahead of implementation. The government has decided that for services provided to small businesses, the responsibility for determining employment status and paying the appropriate tax and NICs will remain with Personal Services Companies. Small businesses will not need to consider the employment status or deduct employment taxes from the fees of people they engage in this way. This will address concerns about small businesses’ capacity to implement the proposed reform, whilst ensuring that businesses which are best placed to determine whether the rules apply take responsibility for doing so. The government intends to use similar criteria to define small businesses as is found in the Companies Act 2006. As a result, over 95% of businesses will not need to apply the reform. Concerns were raised during consultation that businesses may use blanket decisions for the employment status of groups of workers in similar roles without recourse, should those decisions be incorrect. The government plans to explore options available for ensuring that, where this occurs, there are consequences to businesses for failure to use reasonable care in their decision making. HMRC is looking at where the CEST (Check Employment Status for Tax) tool, along with wider guidance, might be improved, both as part of normal good practice and to ensure it reflects the needs of the larger and more diverse private sector. HMRC plans to work with stakeholders to better understand the concerns about CEST raised in response to this consultation; these included saying more about mutuality of obligation, how to treat multiple contracts and clarifying the language used in places.
Government has published a summary of responses to the consultation on off-payroll working in the private sector.
Parental bereavement leave and pay
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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