New minimum wages rates
The national minimum wage hourly rate for adults is to climb to £6.08 in October 2011.
The rise represents a 15p and a 2.5 per cent increase and was recommended by the Low Pay Commission.
Despite the economic uncertainties, the LPC said that the decision for the increase was a unanimous one.
The hourly rate for employees aged between 18 and 20 will rise by 6p (1.2 per cent) to £4.98.
For workers aged between 16 and 17, the rate goes up by 4p (1.1 per cent) to £3.68. While for apprentices there is to be a 10p (4 per cent) increase to £2.60.
PAYE consultation date looming
Employers have little time remaining in which to share their views with HM Revenue and Customs (HMRC) on possible changes to the PAYE system.
The government is looking to update the system and to reduce admin costs for businesses, and is seeking input from employers.
However, the consultation is due to close on 23 September.
Launching the consultation, David Gauke, the Treasury Secretary, said: “The PAYE system needs to respond better to the circumstances of the individual taxpayer because only in this way will we be able to reduce errors and provide taxpayers with the clearest picture possible of their tax and allowances.
“We also need a PAYE system that reduces the burden on employers.”
At the moment, responsibility for administering the system lies with employers, who deduct employees’ income tax and NICs at source.
A real time system could see a programme whereby tax and NICs are automatically taken from employees’ gross pay as it enters their bank accounts.
If there is a good response to the consultation, HMRC has said, there may be a second consultation of proposals in the autumn.
Details of the consultation can be found at HMRC’s website.