Author: Glenn

Minimum wage rates rose on 1 April 2025. NLW now £12.21, and big increases for younger workers too. Make sure you're compliant – underpayment can cost up to £20K per worker and a director ban. Time to check your payroll!

Employers must ensure they are paying staff at least the National Minimum Wage (NMW) or National Living Wage (NLW). The NMW and the NLW are the minimum legal amounts that employers must pay their workers.

The new NMW and NLW rates came into effect on 1 April 2025. The NLW rate has now increased from £11.44 to £12.21. This represents an increase of 77p or 6.7%. The NLW is the minimum hourly rate that must be paid to those aged 21 or over. The increase represents a pay rise of over £1,400 a year for someone working full-time and earning the NLW.

The NMW (for 18-20 year olds) has increased from £8.60 to £10.00 an hour. This is largest increase ever in the NMW (a whopping 16.3% increase) that means younger workers having their pay boosted by up to £2,500 a year. This increase is part of a move to narrows the gap in wage rates for 18-20 years olds and the NLW and ultimately create a single adult wage rate for all those aged 18 and up. 

The NMW rates for 16 to 17 year olds increased from £6.40 to £7.55 – an increase of £1.15 or 18% per hour. The Apprentice Rate mirrors this increase.

It is important that employers ensure they have updated their wage rates and that they pay the legal minimum wage rates. There are significant penalties for employers who are found to have paid workers less that they are entitled to by law. If an employee has been underpaid, the employer must pay any arrears without delay. There are penalties for non-payment of up to 200% of the amount owed. The penalties are reduced by 50% if all of the unpaid wages and 50% of the penalty are paid in full within 14 days.

The maximum fine for non-payment can be up to £20,000 per employee and employers who fail to pay face up to a 15-year ban from being a company director as well as being publicly named and shamed.

1 May 2025 – Due date for corporation tax due for the year ended 30 July 2024.

19 May 2025 – PAYE and NIC deductions due for month ended 5 May 2025. (If you pay your tax electronically the due date is 22 May 2025).

19 May 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2025.

19 May 2025 – CIS tax deducted for the month ended 5 May 2025 is payable by today.

31 May 2025 – Ensure all employees have been given their P60s for the 2024/25 tax year.

1 June 2025 – Due date for corporation tax due for the year ended 31 August 2024.

19 June 2025 – PAYE and NIC deductions due for month ended 5 June 2025. (If you pay your tax electronically the due date is 22 June 2025).

19 June 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2025.

19 June 2025 – CIS tax deducted for the month ended 5 June 2025 is payable by today.

From April 2025, updated ATED rates apply to residential properties held by companies and other Non-Natural Persons (NNPs). Make sure returns and payments are submitted by 30 April to avoid penalties. Reliefs may apply for commercial use.

The Annual Tax on Enveloped Dwellings (ATED) applies to NNPs who own interests in residential properties valued over £500,000. These provisions specifically affect entities such as companies, partnerships with company members, and managers of collective investment schemes, which are all classified as NNPs under the legislation.

Individuals who own property directly (rather than through a company) are not subject to ATED or ATED-related Capital Gains Tax (CGT). Furthermore, certain reliefs may be available if the property is used for commercial purposes.

Since 1 April 2025, ATED is charged based on the following property value bands:

For properties that were subject to ATED on 1 April 2025, both the return and payment must be submitted by 30 April 2025, covering the ATED period from 1 April 2025 to 31 March 2026. If a property is acquired after 1 April and falls within the scope of ATED, payment is due within 30 days of acquisition.

Penalties may be imposed for late filing, late payments, or inaccurate returns. Taxpayers have 30 days to appeal HMRC decisions, including penalties or determinations, by providing the grounds for the appeal.

Small gifts can mean big tax savings! Use the trivial benefits exemption in 2025–26 to reward employees with non-cash perks under £50 – no PAYE, no P11D, and no NIC. A smart, simple way to say thanks.

The rules providing trivial benefit payments provide a great opportunity to give small rewards and incentives to employees in the new 2025-26 tax year. The benefit-in-kind (BiK) trivial exemption applies to small non-cash benefits like a bottle of wine, or a bouquet of flowers given occasionally to employees or any other BiK classed as 'trivial' that falls within the exemption.

By taking advantage of the exemption employers can simplify the treatment of BiKs whilst at the same time offering a tax efficient way to give small gifts to employees. The employer also benefits as the trivial benefit payments do not have to be included on PAYE settlement agreements or disclosed on P11D forms. There is also a matching exemption from Class 1A National Insurance contributions.

The tax exemption applies to trivial BiKs where the BiK:

• is not cash or a cash-voucher; and
• costs £50 or less; and
• is not provided as part of a salary sacrifice or other contractual arrangement; and
• is not provided in recognition of services performed by the employee as part of their employment, or in anticipation of such services.

The rules also allow directors or other office-holders of close companies and their families to benefit from an annual cap of £300. The £50 limit remains for each gift but could allow for up to £300 of non-cash benefits to be withdrawn per director or shareholder per year. The £300 cap doesn’t apply to employees. If the £50 limit is exceeded for any gift, the full value of the benefit will be taxable.

Supply line interruptions can be a nightmare for any business. Whether it’s a delay in deliveries, a shortage of materials, or problems with international shipping, things can grind to a halt fast. But with a bit of planning and a calm approach, you can keep things ticking over and reduce the impact.

1. Know your supply chain inside out

The first step is understanding exactly where your goods are coming from and how they get to you. Who are the suppliers? Are they reliant on overseas shipping? Do they have a history of delays? Map it all out so you can spot weak points before they become full-blown problems.

2. Build strong relationships with suppliers

Good relationships matter. If you’ve got a solid connection with your supplier, they’re far more likely to keep you in the loop if issues arise. It also makes it easier to negotiate alternatives or push your order to the top of the queue when things go wrong.

3. Keep a buffer stock if you can

Holding a bit of extra stock can be a lifesaver, especially for critical items. It might tie up a bit of cash, but it gives you breathing space if something doesn’t arrive on time. It’s all about balance – enough to cover a delay, but not so much that it eats into your profits.

4. Have a Plan B (and maybe a Plan C)

Diversify your supply sources where possible. If one supplier can’t deliver, having an alternative ready can mean the difference between a minor hiccup and a major crisis. Even just knowing who else you could call on helps you react quicker.

5. Stay informed and flexible

Keep an eye on news that might affect supply chains – like strikes, border issues, or economic changes. The sooner you know something’s up, the quicker you can respond. And stay flexible. Can you switch to a different product? Delay a launch? Being adaptable is key.

Final thoughts

Supply line interruptions aren’t always avoidable, but they don’t have to derail your business. With a bit of foresight and some strong backup plans, you can weather the storm and keep moving forward – even if the lorries aren’t.