The personal allowance increases to £11,850 for the 2018/19 tax year. The National Minimum increases from the current £7.05 to £7.38 for 21-24’s, while the Living Wage increases from the current £7.50 to £7.83 (25yrs and over) from 1st April 2018.
Pension contributions increase from the current minimum total contribution of 2% of qualifying earnings on 6 April 2018, rising to 5% (2% employer’s contributions and 3% employee contribution), on 6 April 2019, reaching a total minimum amount of 8%.
The employer and staff member can choose to pay more than the minimum contributions if they wish, however all automatic enrolment pension schemes with contribution rates that would be below the minimum amount after the rate increases must apply the higher rates to remain a qualifying scheme.
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