News The New National Minimum Wage came into effect on 1st October 2008. From that date all employees aged 22 or over will have to be paid at least £ 5.73 per hour whilst employees below that age have to be paid £ 4.77 per hour. This is very relevant for single owner companies where the Director draws a salary of, say, £ 6000 p.a. and take the balance of the profit by way of dividends. Under the Minimum Wage Scheme the owner will be fined for failing to pay himself the legal minimum wage. In these circumstances we would remind all our clients to create "Employment Contracts" with their own companies, with an agreed total of 30 hours per week to be worked at the minimum wage of £ 5.73 per hour, i.e. £ 9000 per year, to be paid in monthly instalments. The balance of the profit will continue to be paid by way of dividends. We have standard "Contracts of Employment" which we can provide to Clients so that they can ensure they are acting within the law. To ignore these "statues" will only result in fines, so please act now. If in doubt please contact our office. Find out more about the benefits G & Co will bring to your company and e-mail us now. An initial consultation is free of charge.
For information on other types of accountancy
G & Co Head Office
For information about our services please visit our website Copyright 2005 Heller Consulting. All rights reserved. |