April 2019 brings in some key changes to the National Minimum Wage, tax, pensions, payslips apprenticeship fees, maternity/paternity pay and sick pay which will affect barbershops. Here’s a handy round up of what you need to know, courtesy of the NHF.
- National Minimum Wage and National Living Wage: Rates will rise from 1 April 2019: National Living Wage for over 25s rises to £8.21ph; 21-24 year olds to £7.70ph; 18-20 year olds to £6.15ph; 16-17 to £4.35ph, with apprentices starting at 3.90ph.
- Making Tax Digitial: Barbershops that are VAT registered will have to keep their VAT business records digitally and send in VAT returns using Making Tax Digital (MTD) compatible software from 1 April 2019. This also applies for those using the VAT Flat Rate Scheme.
- Pension contributions: From 6 April 2019, the total minimum contributions employers and employees must pay into a workplace pensions scheme will increase from 5% to 8%. Employers must make a minimum contribution of 3% and employees must make a minimum contribution of 5%.
- Payslips: From 6 April itemised payslips will now need to be given to all employees. Payslips must include the total number of hours worked or a breakdown of hours paid for different types of work and/or different rates of pay.
Statutory Maternity, Adoption, Paternity and Shared Parental Pay are all set to rise from April 2019. Statutory Sick Pay is also rising.
For more help and information on all of these areas, go to www.nhf.info