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Employment Law & Payroll
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22-01-2020

The Government has published the proposed statutory rates for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP), which come into effect on 5 April 2020, the first Sunday in April. The rate is set to increase from £148.68 to £151.20 per week.


Additionally, the rate for statutory sick pay is to increase from £94.25 to £95.85 per week. This increase will take effect from 6 April 2020.


It should be noted that the lower earnings limit from April 2020 is yet to be published.

To view the new rates click here.



07-01-2020

The government has confirmed that the National Living Wage (NLW) will rise from its current level of £8.21 per hour to £8.72 per hour from 1 April 2020.

The NLW for over 25 year olds) will increase 6.2% from £8.21 to £8.72 from 1 April 2020.

The National Minimum Wage (NMW) will rise across all age groups, including:

a 6.5% increase from £7.70 to £8.20 for 21 to 24 year olds;

a 4.9% increase from £6.15 to £6.45 for 18 to 20 year olds;

a 4.6% increase from £4.35 to £4.55 for under 18s; and

a 6.4% increase from £3.90 to £4.15 for apprentices.

For further details, see the Government press release Government announces pay rise for 2.8 million people.


31-12-2019

 The government has confirmed that the new rate will start on 1 April 2020 and will result in an increase of £930 annually for 2.8 million full-time workers on the NLW

04-12-2019

Many employment law changes are in the pipeline for April 2020, including to the provision of a written statement of employment particulars and the calculation of holiday pay. Now is the time for employers to plan for these changes.  click on article title for more guidance.

27-11-2019

HMRC have updated their online employment status for tax checking tool.

The tool has been updated so questions about a worker’s circumstances will not be asked if the worker is not known to the user.

View Check employment status for tax.


29-10-2019

With effect from 6 April 2020, employers with a National Insurance contributions (NICs) liability of £100,000 or more, or employers who are connected to other employers where their cumulative secondary Class 1 NICs liability is £100,000 or more, will no longer be able to claim the Employment Allowance.


The reform has been designed to revert the Employment Allowance to benefit smaller businesses, hence the limitation that businesses will only be able to claim the Allowance moving forward if their NIC liability in the previous year was less than £100,000


De minimis State Aid


The Employment Allowance moving forward will be operated as a de minimis State Aid, meaning businesses will need to be aware if they are already claiming any other de minimis State aid(s). There is a three year cap on the total de minimis State Aid a business can claim – this cap is €200,000 over a three year rolling period.

Employers will need to ensure they have room on their rolling €200,000 cap to accommodate the full £3,000 Employment Allowance, regardless of whether they would use the full £3,000 allowance. Employers who are connected must ensure that the cumulative value of all secondary Class 1 NICs or State aid across all connected businesses do not exceed the relevant limits.


How can I claim if my company is eligible?


A business could get up to £3,000 a year off their National Insurance bill if they are an employer.

The allowance will reduce your employers’ (secondary) Class 1 National Insurance each time you run your payroll until the £3,000 has been reached or the tax year ends (whichever is sooner).

You can only claim against Class 1 National Insurance you’ve paid, up to a maximum of £3,000 each tax year. You can still claim the allowance if you pay less than £3,000 a year.

Employment Allowance claims will need to be submitted each tax year. Claims will not automatically roll over from the previous tax year. Look out for more information in the coming months.


Useful links

Please see the below link to the consultation documents from GOV.UK:

https://www.gov.uk/government/consultations/draft-legislation-employment-allowance-eligibility-reforms


28-10-2019

HMRC have updated their factsheets for employers concerning National Minimum Wage (NMW) checks and obligations.

Guidance notes on the Notice of Underpayment (NMW FS3) have been updated.

View National Minimum Wage information for employers.


04-10-2019

The Government has announced a new scheme that will apply to the employment of EU nationals immediately after the UK leaves the EU if it does so without securing a deal.

It had originally been thought that freedom of movement would end on Brexit date in a no-deal scenario, meaning that any EU national who wanted to come to the UK to work after Brexit would need to apply through a complicated points-based immigration system.

However, while free movement will technically end on 31st October 2019, much of the free movement framework will remain in place for a period.


Temporary Leave to Remain (TLR) scheme

Transitional arrangements mean that a Temporary Leave to Remain (TLR) scheme will allow EU nationals to move to the UK after Brexit to continue living, working and studying in the UK after 31st December 2020.

The TLR scheme also applies to people from EEA countries who are not part of the EU, and Swiss nationals.

Applications for TLR will be free and can be made once the scheme opens after the UK leaves the EU. TLR will be valid for 36 months from the date it is granted, and the deadline for such applications will be 30th December 2020.


Residence beyond January 2021

People who arrive in the UK after Brexit and wish to continue working in the UK from 1st January 2021 will need to qualify through a future immigration system, the details of which are not yet finalised.

EU nationals who were resident in the UK by 11pm on 31st October 2019 may use the EU Settlement Scheme to obtain settled status, provided they have at least five years’ residency in the UK, which allows them to remain in the UK indefinitely.

People with less than five years’ residency will be able to apply for pre-settled status, which allows them to remain in the UK until they attain the required length of residency and then be able to apply for settled status.


Who needs to take action?

Employers will not be required to distinguish between EU nationals who moved to the UK on or before 31st October 2019 and those who arrived afterwards.

EU nationals will be able to provide evidence of their right to work using either their passport, their national identity card, their digital status under the EU Settlement Scheme, or the Euro TLR scheme until the new points-based system is introduced from January 2021


26-09-2019

Whilst employees and workers will be entitled to the national minimum wage (NMW), it is correct that certain groups will be exempt from this requirement, meaning they are free to agree their own rate of payment with these individuals.

Click on title for more information.

17-09-2019

HMRC has published draft legislation covering changes to the Employment Allowance (EA). From 6 April 2020 the new conditions are:
  • You wont be entitled to the EA if your liability to employers' Class 1 NI in the previous year exceeded £100,000;
  • You won't automatically qualify for EA. You will need to claim it in each tax year. This will involve a declaration and submission to confirm eligibility;
  • connection to another employer may affect eligibility; and
  • the EA will be state aid and counts towards the maximum aid (€200,000) you can receive in a rolling 3 year period.  You must have room to accommodate the whole £3,000 EA within the state aid limit or lose your entitlement to it.



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