Could being prepared for the Minimum Wage Increase April 2019 help you maintain a good Gross Profit Margin?
With the festive season upon us it is hard to think about what we need to address in April, but by looking at the new Minimum wage now you could make sure your Gross Profit doesn’t take a hit when it does come around.
The minimum wage for an over 25 is going up from £7.83 to £8.21. Depending on the number of staff you have, this 38p increase per hour per employee, can have a huge effect on your gross profit margin so addressing it sooner rather than at the beginning of April would be a wise move.
Also if you put your prices up to reflect this and if your business is one that benefits from the Christmas rush, it could even be a great business move as you would profit from the increase now.
The Government are cracking down on employer’s under paying their employee’s, which can lead to penalties of up to 200% of arrears capped at £20,000.00 per employee. So please don’t forget to make these important changes ready before April.
If these increases feel like yet another headache for you, would you like to keep on top of payroll changes from as little as £27.00 a month?TIAccountancy can deal with payroll and Auto Enrolment for you, making sure that you are up to date on legislation without you having to worry about it.
If you would like a quote, please contact me or one of the Team on 01229 813388 or email firstname.lastname@example.org
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
|April 2018 |