This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet
NMW increases take effect
01/10/2008, by Sarah Laing, Tax News - HMRC Administration, Practice and Methods
1925 views
0
Rate:
Rating: 0/5 from 0 people

New rates of national minimum wage payable take effect from 1 October 2008.

There are three levels of minimum wage, and the rates from 1 October 2008 are:

  • £5.73 per hour for workers aged 22 years and older;
  • A development rate of £4.77 per hour for workers aged 18-21 inclusive; and
  • £3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age.

Most adult workers are entitled to the NME if they:

  • are working legally in the UK;
  • are not genuinely self-employed; or
  • have a written, oral or implied contract 

 The development rate for workers age 22 and over was abolished for pay reference periods starting on or after 1 October 2006. From that date, all workers aged 22 and over who qualify for the national minimum wage will be entitled to the main rate of national minimum wage. This applies even where the worker was previously in receipt of the development rate for those aged 22 and over and had been receiving that rate for less than 6 months.

Compulsory School Age
In England and Wales: a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs.

In Scotland: pupils whose 16th birthday falls between 1 March and 30 September may not leave before the 31 May of that year. Pupils aged 16 on or between 1 October and the last day of February may not leave until the start of the Christmas holidays in that school year.

In Northern Ireland: a person is no longer of compulsory school age after the 30th June of the school year in which their 16th birthday occurs.

Accommodation offset
The daily rate of the accommodation offset is £4.46 (£31.22 per week) for each day that accommodation is provided.

Link

HMRC: National Minimum Wage

About The Author

Sarah Laing
Editor, TaxationWeb News

Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).

Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession.

Back to Tax News
Comments

Please register or log in to add comments.

There are not comments added