National Minimum Wage and National Living Wage Rates 2021-22

April 1st, 2021 | Posted in PAYE, Payroll, Small Business

The National Living Wage is applicable to all employees aged 23 and over.  The rate increased to £8.91 from 1st April 2021.  The National Minimum Wage applies to all other employees under 23.  The table below summarises the National Minimum Wage and Living Wage rates for the year commencing on 1 April 2021 and these are the minimum hourly rates that employees are entitled to by law:

Date 23 and over 21 – 22 18 – 20 Under 18 Apprentice
1 April 2021 £8.91 £8.36 £6.56 £4.62 £4.30

The apprentice rate applies to apprentices under the age of 19, or to those aged 19 and over but in their first year of apprenticeship.

Note that the above rates do not apply to the self-employed.

The temporary VAT reduction for hospitality, holiday accommodation and attractions increases from 5% to 12.5% as of today and remains 12.5% until 31 March 2022 when it is due to revert to the full 20% rate. Don't forget to update till systems!

Making Tax Digital (MTD) for self-employed businesses and landlords with income over £10,000 now postponed by a year to April 2024; partnerships won't be required to comply until April 2025 #MTD #notsurprised https://bit.ly/3AEYc5y

Read more about the Health and Social Care Levy on our blog here. Will affect the employed, self-employed and employers. https://bit.ly/3ncznKu

HMRC have released some of the most ridiculous excuses from employers caught not paying their employees the minimum wage. I'm baffled by every single one of them! https://bit.ly/3m69kUR

ICAEW CharteredAccountants BLK RGB copy
QB Advanced Certification logo
Xero Logo Blue