Is your business ready for legal changes ahead? One important and unavoidable topic affecting many businesses is Brexit, with all its uncertainty. But are you also aware of other key legislation being introduced in April this year? If you manage a business, these new rules will impact on you.

Immigration rules

If you have EU nationals working for you, be aware how new immigration rules may impact on them.

As we prepare to leave the European Union in March 2019, immigration laws will change for EU nationals. Those currently residing in the UK can apply to continue living here after 30th June 2021 under the EU Settlement Scheme.

To obtain settled status individuals must prove they have been living in the UK for 5 years by the date of application. Those who do not meet this requirement can apply for temporary status, allowing them to remain until they have gained sufficient residency to be permitted settled status.

National Minimum Wage

From 6th April 2019, the National Living Wage and the National Minimum Wage will both go up, so make sure your business is ready. The table below gives the new rates.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2018 (current rate) £7.83 £7.38 £5.90 £4.20 £3.70
April 2019 £8.21 £7.70 £6.15 £4.35 £3.90

Auto-enrolment pension contributions increase

All employers need to enrol employees automatically into a pension scheme. The Government has gradually increased employee and employer contributions to encourage more savings for the future. The final phased increase in contributions comes into effect from 6th April as per the table below:

Date Employer minimum contribution Staff contribution Total minimum contribution
Current rates from 6 April 2018 to 5 April 2019 2% 3% 5%
6 April 2019 onwards 3% 5% 8%

Read our recent article to find out more: https://businessgarage.co.uk/pensions/pension-changes/

Statutory pay rises

Statutory Maternity, Paternity, Adoption and Shared Parental Pay are all set to rise from £145.18 to £148.68 per week from 6th April.

At the same time, Statutory Sick Pay will increase to £94.25 per week.

Payslips

If you aren’t already providing all workers with payslips, you will need to introduce this by 6th April. All workers, including those on casual and zero-hours contracts, will require a payslip on or before pay day.

The employee’s payslip should include their hours worked if they are not on fixed hours, as well as earnings before and after deductions.

Business Garage can help with payroll to ensure you are meeting all your employer obligations, and that staff are paid correctly and on time. Call us today on 01235 433099.

 Making tax digital

Another key legislation change in April is that all VAT registered businesses with a turnover exceeding £85,000 will need to keep digital records and submit VAT returns online.

Read our recent article for more information: https://businessgarage.co.uk/accounting/making-tax-digital/

For support with your bookkeeping or finance management, contact the experts at Business Garage on hello@businessgarage.co.uk or 01235 433099.

Resources

https://www.gov.uk/settled-status-eu-citizens-families

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020