This Week's Friday Tax Tip 

The national minimum wage (NMW) and national living wage (NLW) rates are due to rise significantly for pay periods starting on and after 1 April 2023, as follows: 
Workers aged 23 & over 
£10.42 per hour 
Workers aged 21 to 22 
£10.18 per hour 
Workers aged 18 to 20 
£7.49 per hour 
Workers aged under 18 
£5.28 per hour 
Apprentice rate 
£5.28 per hour for apprentices aged under 19 and those aged 19 or over who are in the first year of their apprenticeship.  
All other apprentices are entitled to the minimum wage for their age. 
Employers should be careful not to make deductions which reduce workers' wages below the relevant NMW rate. For example withholding money through the payroll for employee uniforms, staff meals, or subsidised childcare could break the new NMW rules. 
If you run a salary sacrifice scheme for childcare, check that the amounts paid after the salary reduction still meet the NMW rate for the employees in the scheme. It may be necessary to redesign the childcare scheme so that it is run outside of the payroll. We can help you with that. 
For more guidance call the team at Holmes Accountancy on 01908 315716 or contact us here 
The tax tip is provided for general guidance only; further advice should be sought, for specific issues. 
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