Top 10 tips for dealing with the national living wage (NLW) and the national minimum wage (NMW)

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Introduction

The national minimum wage (NMW) has been around since 1998, with NMW policy being the responsibility of the Department for Business and Trade (DBT) (before October 2023 it was the responsibility of the Department of Energy & Industrial Strategy or ‘DBEIS’). The equivalent to NMW for the those over 21 years of age (or for over 23, if looking at the picture before 1 April 2024) is the national living wage (NLW). However, in practice, there is just one set of rules. The remainder of this guidance note will therefore refer to these obligations simply as NMW.

In March 2021, the DBEIS (with responsibility subsequently taken over by the DBT, see above) published an online version of its manual: Calculating the minimum wage. Although this is the primary guidance material, day-to-day responsibility for policing the system falls upon HMRC rather than the DBT, and further guidance may be obtained from the HMRC national minimum wage manual ― see NMWM01000 onwards.

With its increasingly

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more

Year-end tax planning

Personal Tax

Foreign self-employment

Foreign self-employmentTrading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications. For an overview of the points to consider for certain jurisdictions see Tolley's Global

14 Jul 2020 11:44 | Produced by Tolley Read more

Value Added Tax

VAT registration ― artificial separation of business activities (disaggregation)

VAT registration ― artificial separation of business activities (disaggregation)This guidance note should be read in conjunction with the VAT registration ― compulsory guidance note and is relevant to persons established or resident in the UK. Persons that are not established or resident in the UK

14 Jul 2020 13:57 | Produced by Tolley Read more

��Ӱ��