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Key Provisions coming into effect from April 2017

Key Provisions coming into effect from April 2017

Posted on March 07, 2017

The Apprenticeship Levey

From April the 6th employers will be required to pay the levy, charged at 0.5% of the annual pay bill. A £15,000 annual allowance applies to employers. This means in practice only employers with a pay bill of more than £3 million will actually have to pay. The levy applies across the entire pay bill where the employer is a secondary contributor for National Insurance contributions so this will include pay for temporary workers on the business’ books.

New tax rules for contractors working through intermediaries in the public sector

April will also see new tax rules come into place for individuals who undertake work in the public sector working through an intermediary rather than being on the public sector’s books.

Gender pay gap reporting

Employers with more than 250 employees will need to annually publish date about the differences in pay between their males and female employees. The first reporting period starts on the 5th of April 2017, the date on which employers will need to take a snapshot of their numbers of employees.

New National Minimum Wage rates for 2016/2017 have been announced.

This year the NMW rates, including the new rate for workers aged 25 and over (National Living wage) all go up in April. From April 2017 the minimum hourly rates for:

Workers aged 25 and over (National Living Wage)                             increases from £7.20 to £7.50

Workers aged 21 and over                                                                           increases from £6.95 to £7.05

Workers aged 18 – 20                                                                                    increases from £5.55 to £5.60

Workers aged 16 – 17                                                                                    increases from £4.00 to £4.05

Apprentices                                                                                                        increases from £3.40 to £3.50                                                                    

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