Employment tax updates: August 2018

Jackie Hall ACA CTA, partner at RSM on the National Living Wage under review, Finance Bill measures affecting employers, professional subscriptions

National Living Wage under review

It has long been argued that minimum wage legislation can have unintended consequences.

One school of thought is that employers may be encouraged to discriminate against older workers and take on younger candidates, taking advantage of the lower rates of national minimum wage applicable to under 25 year olds.

The counter argument is that younger employees are less experienced and perhaps require more training and development in order to acquire the necessary skills. Consequently a lower pay rate compensates the employer for this necessary training and development time.

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