How to deal with Living Wage?
Living wage in UK is currently set at £7.20 per hour and set to rise to £7.50 per hour from April 2017, a rise of 4.16%. This is an issue for Small Businesses in the UK.
For a Service Based Businesses, this adds to the overheads. Is the Government pushing such overheads onto Small Businesses just to maintain the standard of living?
Let us look at the NIC & Tax rates for 2016-17.
- Up to £155 pw – No NI to pay
- Up to £211 pw – No Tax to pay
- Living wage – £7.50 for > 25 years
Hence if you are looking for staff, why not have one with £155/7.50 = 20 hours per week & another one for 20 hours a week, thereby there is no TAX/NIC to pay by the Employee & the Employer?
Does this mean that Employers are looking for Part Time Staff & this means that Employees can have more than one job?
Yes, the way our Business evolves is changing. Are you ready for the change?
Can Excel Accountants help you?
Why not give us a call on 07879601780 to arrange an Initial FREE Consultation?
To Your Success