Businesses that have a significant number of workers who are paid at the National Minimum Wage or National Living Wage (NLW) rates should probably read the recent independent report that suggests rates of NLW could rise, as internationally, there is evident that realistic rises have little impact on employment levels but do have a positive impact on the take home pay of lower paid workers.

The report says:

The review, published Monday 4 November, concludes minimum wages in a range of countries have had a negligible or zero effect on jobs, but significantly increased the earnings of the lowest paid. The Chancellor has pledged a more ambitious NLW so that on current projections it is set to reach £10.50 per hour by 2024, as part of his commitment to do more to end low pay.

Chancellor of the Exchequer, Sajid Javid, said:

The evidence is clear that our approach is the right one.

We will end low pay by putting the National Living Wage on a path to increase to £10.50 over the next five years.

The previous NLW target was to reach 60% of median earnings by 2020. In line with the conclusions of the Dube Review, the Chancellor Sajid Javid has pledged to increase the NLW towards a new target of two-thirds of median earnings by 2024, provided economic conditions allow. The Chancellor additionally committed to expand the living wage to more young people by bringing down the age threshold for the NLW to cover all workers over the age of 21.

These recommended changes do not mean that the NLW will increase in line with the above comments. However, affected businesses may like to incorporate the possible increases into their medium term planning forecasts.

Believe it or not, HMRC will consider you are the employer of a nanny, housekeeper, gardener or anyone else who works in your home if both the following criteria apply:

• you hire them, and
• they are not self-employed or paid through an agency.

If these criteria do apply this means you have certain responsibilities, like meeting the employee’s rights and deducting the right tax.

There are special rules for au pairs, who are not usually considered workers or employees.

You are classed as an employer if you pay a carer or personal assistant directly, even if you get money from your local council (‘direct payments’) or the NHS to pay for them.

Anyone you employ must:

• have an employment contract
• be given payslips
• not work more than the maximum hours allowed per week
• be paid at least the National Minimum Wage

If they meet the eligibility requirements, they are also entitled to things like:

• Statutory Maternity Pay
• Statutory Sick Pay
• paid holiday
• redundancy pay
• a workplace pension

In effect, you would be treated as an employer and would need to comply with the usual obligations to register and apply the PAYE regulations.

If you are concerned that you may be affected we can help you set up and maintain the necessary payroll records.

1 November 2019 – Due date for Corporation Tax due for the year ended 31 January 2019.

19 November 2019 – PAYE and NIC deductions due for the month ended 5 November 2019. (If you pay your tax electronically the due date is 22 November 2019.)

19 November 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2019.

19 November 2019 – CIS tax deducted for the month ended 5 November 2019 is payable by today.

1 December 2019 – Due date for Corporation Tax due for the year ended 28 February 2019.

19 December 2019 – PAYE and NIC deductions due for the month ended 5 December 2019. (If you pay your tax electronically the due date is 22 December 2019)

19 December 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2019.

19 December 2019 – CIS tax deducted for the month ended 5 December 2019 is payable by today.

30 December 2019 – Deadline for filing 2018-19 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2020-21.

As a general rule, if you sell shares for more than you paid for them, any profit you make will be chargeable to Capital Gains Tax (CGT).

Shares and investments you may need to pay tax on include:

• shares that are not in an ISA or PEP
• units in a unit trust
• certain bonds (not including Premium Bonds and Qualifying Corporate Bonds).

CGT will not usually be payable if you give shares as a gift to your husband, wife, civil partner or a charity.

You also do not pay Capital Gains Tax when you dispose of:

• shares you’ve put into an ISA or PEP
• shares in employer Share Incentive Plans (SIPs)
• UK government gilts (including Premium Bonds)
• Qualifying Corporate Bonds
• employee shareholder shares – depending on when you got them

The amount of CGT payable will depend on your other earnings in the tax year. You may also be able to claim other reliefs if you are selling shares in a business that you control.

Finally, we are all entitled to make tax-free capital gains each tax year. For 2019-20, the CGT annual exemption is £12,000.

It is fine to keep working past your State Retirement Age unless your employment is subject to retirement at a compulsory retirement age. If your employer does this, they must give a good reason, for example: the job requires certain physical abilities (e.g. in the construction industry) or the job has an age limit set by law (e.g. the fire service).

To be clear, a forced retirement age of 65 no longer exists.

You can also ask your employer if you can work more flexibly or work part-time. They have the right to reject your request.

You can claim your State pension while you are working, as long as you’ve reached the State Pension age. You can also work if you are claiming a personal or workplace pension. However, check with your pension provider or employer if you have a workplace pension as reducing your working hours could affect how much pension you will receive. You should also check to see what happens to your workplace pension if you continue working beyond the age when you can take it.

If you delay (defer) taking your State Pension, you will get larger weekly payments when you do start taking your pension.

A bonus

You don’t pay National Insurance if you work past State Pension age.