Fresh Threads: Minimum wage, half-day calculation, Yodel rumour

  1. Ray Newman

    Ray Newman UKBF Regular Staff Member

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    Hi UKBFers,

    Welcome to Fresh Threads, our weekly roundup of the best comments and advice from the forums. 

    Here are my top picks from this week.

    Minimum wage speculation for 2020/21

    Talay

    In 2015 the national minimum wage was forecast to be at least £9 an hour by 2020. To get from the current £8.21, it would need a 9.6% increase.

    If the Conservatives fail to reach their target by their date, surely it would cost them in an election. Thus, by one means or another, are we going to see at least £9 an hour by 2020? If we do, who the heck is going to pay for it?

    Mr D: Of things affecting who I vote for, minimum wage promises made years ago aren't in the top 100. The last rise as I recall was about 4.8%. The same people who have paid for the previous 20-plus increases will pay for the next increase.

    NickGrogan: The Government already forecasts that the national living wage will reach a rate of £8.62 in 2020.

    ecommerce84: I don’t think it will hit £9 but where it lands will depend on the political situation. Many minimum wage jobs will be lost to tech ultimately anyway, the faster the national minimum wage increases, the faster the jobs will go.

    Mr D: More and more jobs become national minimum wage ones.My wife escaped off minimum wage two years ago by getting a higher-paid job. Same job now but she's on minimum wage. It caught her up.

    What consists of a half-day's holiday?

    benriley

    I am trying to clarify what actual times consist of a half-day's holiday. Our staff work 0900 to 1700 with a half-hour paid lunch.

    I am receiving conflicting advice about when they book a half-day's holiday for the afternoon. Do they leave work at 1245 or 1300?

    Newchodge: Divide the hours in half and allow them a 15-minute paid break at the end or beginning of their working day, so they leave after 3.75 hours or work 3.75 hours in the afternoon.

    STDFR33: Eight hours’ paid. Half of eight is four. Four hours would take you to 1pm.

    Newchodge: @STDFR33 But 15 minutes of that is not worked, so the working time is three hours 45 minutes. If you add it together - assume they take one afternoon off and the next morning. They will have worked seven hours 30 minutes over the two days, which is their normal working day.

    Mr D: @Newchodge If not taking lunch would they still be paid for half of it?

    Are Yodel no longer collecting parcels from customers?

    SamStones

    We've just been informed that Yodel will stop collecting parcels from customers at the end of October 2019 unless the customer is filling an arctic [lorry] and sending directly to their hubs, eg the local service centres will no longer be collecting from small and medium-sized businesses. 

    Mr D: Who informed you? Would imagine such a major change in business model would be part of a press release at least.

    crackerjackcommerce: I have not heard anything and I agree with Mr D, it would probably be documented online somewhere due to the nature of the change. Not a good time to be doing it also with busy Q4 period?

    SamStones: @Mr D Our current third-party provider who looks after our Yodel account informed us of the change. It seems a major change in business model, and has come completely out of the blue. I'm yet to hear of anyone else who's heard this same story, so I'm struggling to get to the bottom of it!

    Newchodge: Has your third party provider suggested an alternative company? Is that their motivation to tell you this 'news'?

    Switching from limited company to sole trader

    Jenny Woollett

    I am the director and founder of music PR company and I am starting to panic after meeting with an accountant to go through all the numbers. 

    I need some advice about switching from a limited company to a sole trader. Will this affect my business negatively? Is this the right move at the moment? Will people trust a music PR company that is run by a sole trader?

    JEREMY HAWKE: No, it won't affect your business. I scaled down from a large limited company to a sole trader. People on here will tell you that you need to be a limited company to look professional, but it is all a load of bunkem. 

    Newchodge: @Jenny Wollett I don't think many people would care, or even notice. However, what figures has your accountant frightened you with? I would have thought that the only real additional expense would be accountants' fees.

    Jenny Wollett: @Newchodge I am very new to business, so I am confused about the amount of corporation tax I will need to pay, director’s salary, tax limits and other things.

    mattk: Ask your accountant to write down for the pros and cons of changing business structure, including figures of both scenarios. That is what you pay your accountants to do. Running a limited companies isn't more complex than being a sole trader. 

    That's all for this week – keep an eye out for the weekly UKBF newsletter on Friday.

    #0
  2. Furqan721

    Furqan721 UKBF Contributor Free Member

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    Thank You for sharing this stuff!
     
    Posted: May 16, 2018 By: Furqan721 Member since: Feb 26, 2018
    #2
    Chris The Dropshipper likes this.