Business Innovation | Sherie Griffiths

October 22, 2009

“Changes to the National Minimum Wage”

Filed under: Uncategorised — Tags: 18 Years, Adult Rate, Apprentices, Apprenticeship, Branston, Breach, Business Innovation, Chartered Certified Accountants, Court Of Appeal, Gratuities, Hot Topics, Lpc, Minimum Wage Changes, National Minimum Wage, Nmw, Payroll, Prime Minister, Secretary Of State, Service Charges, Wages — sheriegriffiths.com @ 2:27 pm

More from Branston Adams (Chartered & Certified Accountants) http://www.branstonadams.co.uk

This month sees the introduction of a number of changes to the National Minimum Wage(NMW) regulations.

Main adult rate to rise

The NMW rates increased with effect from 1 October 2009, following recommendationsby the Low Pay Commission (LPC), which reviews NMW rates on an annual basis on behalfof the Government.

Furthermore, employers who are found to be in breach of the NMW legislation are nowsubject to automatic penalties, ranging from £100 to £5,000. This is in addition
to the wages already owed to the employee. From October 2010, 21-year-olds will be included in the main adult rate of the NMW.

Tips and service charges

In addition, from 1 October 2009 employers will be banned from using tips and service charges to bring the wages of bar and restaurant workers up to the statutory levels.

A recent case in the Court of Appeal concluded that employers must not take into account tips, gratuities, service charges or cover charges when paying the NMW, unless these are paid to employees through the employer’s payroll.

Apprenticeship pay

Meanwhile, the Government has asked the LPC to consider introducing a minimum wage for apprentices. Under the current legislation, apprentices aged 18 years or less are exempt from the NMW, as are those aged 19 or older who are in the first year of their apprenticeship. From August this year Learning and Skills Council apprentices are guaranteed a weekly pay rate of £95.

The LPC has been asked to report its recommendations to the Prime Minister and Secretary of State for Business, Innovation and Skills by the end of February 2010.

For more information on the National Minimum Wage changes, please visit the Hot Topics section of our website
http://www.branstonadams.co.uk/data/topical.

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September 3, 2009

Scrappage hailed ‘a success’ as scheme reaches half-way mark

Filed under: Uncategorised — Tags: Berr, Branston, Budget, Business Innovation, Chartered Certified Accountants, Closing Date, Early November, Gov Uk, Initiative, Led, Mandelson, Motor Manufacturers, New Cars, New Vehicles, Popularity, Scrappage Scheme, Society Of Motor Manufacturers And Traders, Subsidy, Success, Uk Registration — sheriegriffiths.com @ 9:43 am

From Branston Adams (Chartered & Certified Accountants) – http://www.branstonadams.co.uk

The Government’s Vehicle Scrappage scheme was hailed a success as the number of cars purchased under the initiative surpassed the half-way mark this month.

Official figures have revealed that over 175,000 new cars have been ordered since the announcement of the scheme in the 2009 Budget. This means that more than half of the funding ring-fenced for the scheme has now been exhausted.

The Government put aside £300 million for the scheme, enough to fund 300,000 transactions. However, the Society of Motor Manufacturers and Traders predicts that funding will run out well in advance of the original closing date of 28 February 2010, and possibly by ‘the end of October, early November’. Individuals and businesses wishing to take advantage of the scheme have therefore been advised to act quickly.

Following the news, Business Secretary Lord Mandelson said the scheme was ‘a great deal for manufacturers and dealers, not to mention customers’.

Its popularity has led to a 13.5% rise in car manufacturing, Mandelson confirmed, with the South-East of England seeing the highest take-up (18% of total scrappage sales).

The so-called ‘cash for bangers’ initiative offers a £1,000 subsidy, per vehicle, from the Department for Business, Innovation and Skills, matched by a further £1,000 subsidy from the manufacturer. The subsidy is in addition to any other subsidy or discount offered by the manufacturer or dealer.

The old and new vehicles are subject to a number of conditions, including restrictions relating to their weight, date of UK registration, registered keeper, and length of ownership. A full list of conditions is available from the BIS (visit www.berr.gov.uk.)

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