Chancellor confirms NLW will rise in April 2017

14 December, 2016

Chancellor Philip Hammond’s Autumn Statement has confirmed that the National Living Wage (NLW) for workers over the age of 21 will increase from £7.20 an hour to £7.50 as of 1 April 2017.

The news may come as a blow to many small and medium-sized enterprises (SMEs), which could face hefty fines for non-compliance if they fail to update their payroll prior to the change taking effect.

Under recent changes introduced to NLW legislation, businesses which are found to be paying their staff less than the Living Wage can face fines of up to 200 per cent of the total underpayment.

In effect, it means that firms can face fines of anywhere between £100 up to a maximum penalty of £20,000 for non-compliance.

And in the most serious cases, a business owner may be criminally prosecuted by HM Revenue & Customs (HMRC), which could come coupled with an unlimited fine – the maximum penalty upon conviction.

At Watson Buckle, we can offer support and advice on all of your payroll obligations, including the National Living Wage. For more information about how we could help you, please contact us.

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