Harnett Accountants Kingston – Minimum wage and VAT changes take effect

Harnett Accountants Kingston brings you this article from the BBC, reporting that the increases in minimum wage and changes in VAT have taken effect from today.

“A rise in the earnings of the lowest paid workers has come into effect but athletes and hairdressers are likely to see their tax bill increase.

Various changes to the UK tax and benefits system come into force on 1 October.

These include an increase in the UK minimum wage from £6.08 to £6.19 an hour. The rate for those aged under 21 remains unchanged.

Meanwhile, VAT will now be levied on sports drinks and hairdressers’ chairs.”

source: full article

The move has been criticised by trade unions as not going far enough, as they claim that due to the increased cost of living, young people in particular will actually face a real terms cut in pay. The rate for under 21’s remains unchanged.

If you need advice about paying employees, or advice about how to run your business in the most tax efficient way, contact our accountants in Kingston and we will arrange a free, one hour, no obligation consultation. You can contact us through our website or on 020 8977 3883. Also you can follow us on Twitter, Facebook and Google+. Additionally, you can keep reading our daily blogs.


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