Updates for Tax Year 2016/17
The Living Wages applies from 1st April 2016 for 25 year olds and above £7.20 gross per hour.
The standard tax allowance rises from 1060L to 1100L.
Rates Over £112 – Must register as an employer with HMRC
£155 – National Insurance Due
£213 – Tax Due
Further details from the government site:
About the new national living wage
The government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.
With record employment, the highest GDP growth in the G7, over 2 million jobs created since 2010, and 1.1 million more forecast by the Office for Budget Responsibility (OBR), the government believes that now is the right time to take action to ensure low wage workers can take a greater share of the gains from growth.
The new national living wage is an essential part of this. It ensures that work pays, and reduces reliance on the state topping up wages through the benefits system.
From April 2016, the government will introduce a new mandatory national living wage (NLW) for workers aged 25 and above, initially set at £7.20 – a rise of 50p relative to the current National Minimum Wage (NMW) rate. That’s a £910 per annum increase in earnings for a full-time worker on the current NMW.