Don’t be an April fool, make sure you are up to date on the host of legislation that is put in place today (Friday, April 1).
National minimum and living wage
From today, national minimum wage and national living wage will increase, benefiting around 2 million workers. The changes are as follows:
- National Living Wage for over-23s: from £8.91 to £9.50 an hour
- National Minimum Wage for those aged 21-22: from £8.36 to £9.18
- National Minimum Wage for 18 to 20-year-olds: from £6.56 to £6.83
- National Minimum Wage for under-18s: from £4.62 to £4.81
- The Apprentice rate: from £4.30 to £4.81
Companies and unincorporated associations that pay corporation tax will be affected by changes which come into effect on today.
The planned changes to corporation tax also begin today after HM Revenue and Customs set the “main rate” for corporation tax for all non-ring-fenced profits to 19 per cent for the financial year that begins on April 1, 2022, increasing to 25 per cent of profits over £250,000 from April 1, 2023.
A small profits rate (SPR) will also be introduced at this time for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19 per cent.
Maternity, paternity, adoption, and shared parental pay increase
Statutory rates will rise from £151.97 to £156.66.
New mums who don’t qualify for standard maternity pay could get payment from maternity allowance.
This will rise from £156.66 to £157.97 today. – think you have got this the wrong way round – rises from £156.66 to £157.97
Statutory Sick Pay
Statutory Sick Pay is currently paid by employers for up to 28 weeks.
The current rate of £96.35 per week has risen to £99.35 from today.
Making Tax Digital
From today, Making Tax Digital (MTD) is expanded to all VAT returns. Any VAT returns made after April 1, 2022, will have to be filed electronically.
In order to help members navigate these changes, the Fed has prepared a checklist.
While the requirement for digital record keeping starts from April 1, 2022, your first return may not be due until the summer of 2022.
Carrier bag levy increase in Northern Ireland
Carrier bags in Northern Ireland will increase to 25p for all bags priced at £5 or less.
the levy will apply to all new carrier bags with a retail price of below 20p. The new levy will not just apply to plastic bags but will be applicable to all carrier bags made of all materials, such as paper. The new proposals state the levy will be applicable when you buy good such as groceries or clothing, and when goods are delivered and sent in carrier bags.
Employers not obliged to consider Covid-19 in risk assessments
From today, the government will remove the legal requirement in England for every employer to explicitly consider Covid-19 health and safety in their risk assessments.
Road tax to increase
Vehicle excise duty (VED), also referred to as road tax, vehicle tax or a road fund licence, will increase from April 1. VED is calculated using the car’s age and CO2 emissions.
The standard rate for cars registered after 2017 that emit between one and 50kg of CO2 will increase from £155 to £165. Cars that emit no CO2 do not require road tax payments.