The rules are changing – make sure your business is ready
Swoop has been looking at the numbers on the new national minimum wage and national insurance rates (for details of these, see below).
These changes will affect businesses with employees from April, so please make sure that you double check your sums and make sure you are paying your wages and NI contributions appropriately. You might find this HMRC page useful.
As with any change, multiplying small increases across a number of staff can mean that your budgets will be strained in other areas: there will be less money for stock, marketing, or repairing the damage after a week of storms.
If money is getting tight, Swoop has a range of options to help you find more wiggle room such as savings across energy bills, FX and bank accounts; refinancing loans that are costing more than they should to service; it might even be a sign that it’s time to sell some equity in your business.
National minimum wage from April 6th 2022
23 years old + (currently £8.91) will rise to £9.50
21-22 (currently £8.36) will rise to £9.18
18-20 (currently £6.56) will rise to £6.83
Under 18 (currently £4.62) will rise to £4.81
Apprentice under 19 (or in the first year of apprenticeship) £4.81
National Insurance Rates from April 2022
Employer NI (currently 13.80% on earnings over £737) will rise to 15.05% on earnings over £758
Employee NI (currently 12% on earnings over £797) will rise to 13.25% on earnings over £823
Monthly National Insurance Thresholds from April 6th 2022
Lower Earnings Limit (currently £520) will rise to £533
Primary Threshold (threshold for employees NI) (currently £797) will rise to £823
Secondary Threshold (threshold for employers NI) (currently £737) will rise to £758
Upper Earnings Limit (currently £4189) will remain at £4189