Technical Info
National Minimum Wage to increase from October
Thursday, 25 March 2010 13:48

Following the publication of the 2010 Budget, the Government has confirmed that the National Minimum Wage (NMW) will increase with effect from 1 October 2010.

On this date the main adult rate of the NMW, which currently applies to those aged 22 and over, will rise by 2.2% from £5.80 to £5.93 an hour.

In addition, as previously announced, 21 year olds will be also included in the main adult rate from 1 October.

The TUC has welcomed the news, arguing that the rise will benefit around a million people.

TUC Brendan Barber said, 'Once again the Low Pay Commission has managed to resist employer calls for a freeze and has been able to agree a modest increase to the minimum wage rate despite the difficult economic times'.

However, the British Retail Consortium (BRC) has described the move as 'irresponsible'.

Stephen Robertson, BRC Director General, said, 'The BRC supports the principle of the minimum wage, but it's sheer madness to be forcing new costs on this scale onto retailers and their suppliers'.
 
Rate of interest on beneficial loans
Monday, 22 March 2010 14:21
  • New rate of interest of 4% will apply from 6 April 2010 onwards
  • The current rate is 4.75% - this applies for the whole of 2009/10


The rate of interest charged on beneficial loans (known as the “official rate”) was last changed late in the 2008/09 tax year. The rate has been 4.75% since the beginning of the current tax year and HMRC has now announced that Regulations are being laid to reduce the official rate from 4.75% to 4.0% with effect from 6 April 2010.
So the average rate for the current year is now confirmed at 4.75%, for those calculating a benefit in kind on an interest free or low interest loan during 2009/10. Note that the same rate is also used in the calculation of the benefit in kind on living accommodation if the property originally cost more than £75,000.
 
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Last Updated ( Wednesday, 23 June 2010 10:18 )