Big Payroll Changes for April 2024
1st April 2024 will bring big changes for employers’ payroll responsibilities. Both the National Minimum Wage and the National Living Wage are increasing, plus the National Living Wage is extending to involve employees aged 21 and over (currently aged at least 23 years).
The Low Pay Commission recommended the changes, which were confirmed in the Chancellor’s Autumn Statement of 2023. They impact employers of all sizes and business formats, including sole traders and limited companies.
This April’s rate sees the largest increase in cash terms since the National Living Wage began. The change represents a rise of 9.8% (for those aged 21 and over) and the first jump of over £1 per hour.
New payroll rates from 1 April 2024
The new hourly rates to apply from 1st April 2024 are:
- National Living Wage (aged 21+): £11.44
- National Minimum Wage (aged 18-20): £8.60
- National Minimum Wage (aged 16-17): £6.40
- Apprentice rate: £6.40 hour
Whilst the rates are issued as hourly amounts, they apply to all eligible employees. This includes those paid hourly, by annual salary and by output (piece work).
‘Employers’ payroll systems must be updated in time for the changes,’ says Trina Haggerty of Hargreaves Owen Chartered Certified Accountants near Hitchin. ‘It’s crucial to comply with legislative requirements and everyone wants to be paid correctly!’
Would you like to discuss how the new rates impact your payroll system?
The Hargreaves Owen team has expert knowledge of the legislative requirements involved with payroll. We’re here to ensure your payment obligations to your employees and HMRC are met as easily as possible. Contact us for an initial discussion without obligation or jargon.