As of 6th November 2022, National Insurance contributions will be reduced by 1.25% so make sure you've got your payroll set up to reflect this cut in your November pay run and sent out a company comms to let all staff know about it well in advance.
Income tax rates will be reduced from 20% to 19% effective from April 2023. Again, schedule when your company comms to all staff will be going out.
We've been warned to expect changes to UK employment legislation. We've been waiting for this since Britain left the EU and that can of worms is due to be opened. The Chancellor has made it clear that employment regulations are now due for change or total removal.
Some regulations automatically expire 31st December 2023 so we advise you to make a note of this date in your diary as employment legislation will start to change in the run up to this date. We'll keep you updated with any laws that are going to automatically expire.
IR35 regulations will be reversed, putting the onus back on contractors rather than making it a shared responsibility between the contractor and the company engaging their services. The rules still apply for now but will be reversed in April 2023.
Corporation tax was due to increase from 19%-25% in April 2023. This will not now happen and corporation tax rates for all business will remain at 19% for the foreseeable. The explanation given for this is that it is hoped that businesses will be able to better recruit and retain staff.
New legislation has been introduced stating that it will be a legal requirement for trade unions to put offers to members for a vote BEFORE strike action takes place. We'll update you on this and any other industrial action employment legislation that looks like it may be proposed and associated effective dates.
New investment zones have been established which means that if you are an employer in one of these zones, NI contributions will be exempt from an employee's salary, for the first £50,000 that they earn. There are currently 38 zones proposed in England. No date has been confirmed for this initiative yet so watch this space for updates and for zones to be confirmed in Scotland and Wales.
If you have any questions or are unsure about how to make these changes to your employees' contractual terms, please get in touch. Instead of suffering sleepless nights and worrying, let us help you get these changes in place ASAP.