HMRC have today announced

New national minimum wage rates that take effect from 1 October 2011

• The Adult rate will increase by 15 pence to £6.08 an hour
• The rate for 18-20 year olds will increase by 6 pence to £4.98 an hour
• The rate for 16-17 year olds will increase 4 pence to £2.68 an hour
• The rate for apprentices will increase by 10 pence to £2.60 an hour

There are also new self assessment penalties for late returns and late payments which come into effect this autumn.

For late self assessment returns, penalties are

• An initial £100 fixed penalty, applied even if there is no tax to pay or if the tax due is paid on time
• After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• After 6 months, a further penalty of 5% of tax due or £300, whichever is greater
• After 12 months, another 5% or £300 charge, whichever is greater. Serious cases the penalty after 12 months can be up to 100% of tax unpaid

Penalties for late payment will be

• 5% at 30 days
• Another5% at 6 months
• A further 5% at 12 months

They have also published the countdown for the abolition of contracting-out on a Defined Contribution basis