johnthesearcher
New Member
Some of you may have already received this but I got this update in an e mail from Business Zone and thought it may interest forum members........
# scroll down for tax and NI cont. updates.
Monday 6 April is 2009's first common commencement day, one of two days in the year when the government introduces new regulations. See below for the changes which apply to small businesses.
Extension to the right to request flexible working
Applies to all employees in England, Scotland and Wales
The right to request a flexible working has been extended to cover employees with parental responsibility for children aged 16 and under. Employers have a duty to consider such requests.
To qualify employees must have worked continuously for at least 26 weeks on the date the request is made, not have made another statutory request during the past year and be the mother, father, adopter, guardian, special guardian, foster parent or private foster carer of the child or a person who has been granted a residence order in respect of a child. The spouse, partner or civil partner of the mother, father, adopter, guardian, special guardian, foster parent or private foster carer also have the right to request flexible working.
Changes in handling employee disciplining and dismissal
Applies to all employers in the private, public and voluntary sectors in England, Scotland and Wales
The statutory procedures which employers must follow when disciplining or dismissing staff has been replaced by a more flexible regime. Where a 'trigger event' occurs, employers are not required to follow the statutory procedures but instead should follow a fair and reasonable procedure in accordance with the new Acas code of practice.
Strengthening of national minimum wage law enforcement
All employers in the private, public and voluntary sectors in the UK who do not pay the national minimum wage to all their workers who are entitled to it
Employers not paying the correct national minimum wage will be issued with an automatic fine of up to £5,000. The most serious cases are subject to an unlimited penalty. HM Revenue and Customs compliance offers also have new powers to enter premises, carry out investigations and take away wage records.
Increase to the statutory minimum leave entitlement
The statutory minimum paid annual leave entitlement has risen from 4.8 weeks (24 days for those working a five-day week) to 5.6 weeks (28 days). Time off for bank and public holidays can be included in the entitlement.
Income tax and National Insurance contributions (NICs) rate changes
Applies to all businesses
PAYE tax rates are 20% for earnings up to £37,400 and 40% for earnings over £37,400.
Personal income tax allowances have increased to £6,475 for the under 65s, £9,490 for ages 65-74 and £9,640 for those over 75.
NIC thresholds and rates have increased to:
£110 per week for both the primary and secondary thresholds
£95 per week for the primary Class 1 lower earnings limit
£844 per week for the primary Class 1 upper earnings limit
£5,075 per year for the Class 2 small earnings exception
The self-employed will pay Class 4 NICs on profits according to the new 2009-10 lower profit limit (LPL) and upper profit limit (UPL) as follows:
8% for profits between the LPL of £5,715 and the UPL of £43,875
an additional 1% on all profits above the UPL
Changes to VAT Flat Rate Scheme
The second VAT test requiring a business to check that its total income is less than £187,500 has been removed altogether leaving only the first test – i.e. that a business' taxable income must be less than £150,000. The leaving test – i.e. the turnover at which a business must leave the flat rate scheme - has increased to £225,000.
Health and safety
Applies to businesses that operate across multiple authorities and opt to enter into a Primary Authority Partnership with one local authority of their choice
# scroll down for tax and NI cont. updates.
Monday 6 April is 2009's first common commencement day, one of two days in the year when the government introduces new regulations. See below for the changes which apply to small businesses.
Extension to the right to request flexible working
Applies to all employees in England, Scotland and Wales
The right to request a flexible working has been extended to cover employees with parental responsibility for children aged 16 and under. Employers have a duty to consider such requests.
To qualify employees must have worked continuously for at least 26 weeks on the date the request is made, not have made another statutory request during the past year and be the mother, father, adopter, guardian, special guardian, foster parent or private foster carer of the child or a person who has been granted a residence order in respect of a child. The spouse, partner or civil partner of the mother, father, adopter, guardian, special guardian, foster parent or private foster carer also have the right to request flexible working.
Changes in handling employee disciplining and dismissal
Applies to all employers in the private, public and voluntary sectors in England, Scotland and Wales
The statutory procedures which employers must follow when disciplining or dismissing staff has been replaced by a more flexible regime. Where a 'trigger event' occurs, employers are not required to follow the statutory procedures but instead should follow a fair and reasonable procedure in accordance with the new Acas code of practice.
Strengthening of national minimum wage law enforcement
All employers in the private, public and voluntary sectors in the UK who do not pay the national minimum wage to all their workers who are entitled to it
Employers not paying the correct national minimum wage will be issued with an automatic fine of up to £5,000. The most serious cases are subject to an unlimited penalty. HM Revenue and Customs compliance offers also have new powers to enter premises, carry out investigations and take away wage records.
Increase to the statutory minimum leave entitlement
The statutory minimum paid annual leave entitlement has risen from 4.8 weeks (24 days for those working a five-day week) to 5.6 weeks (28 days). Time off for bank and public holidays can be included in the entitlement.
Income tax and National Insurance contributions (NICs) rate changes
Applies to all businesses
PAYE tax rates are 20% for earnings up to £37,400 and 40% for earnings over £37,400.
Personal income tax allowances have increased to £6,475 for the under 65s, £9,490 for ages 65-74 and £9,640 for those over 75.
NIC thresholds and rates have increased to:
£110 per week for both the primary and secondary thresholds
£95 per week for the primary Class 1 lower earnings limit
£844 per week for the primary Class 1 upper earnings limit
£5,075 per year for the Class 2 small earnings exception
The self-employed will pay Class 4 NICs on profits according to the new 2009-10 lower profit limit (LPL) and upper profit limit (UPL) as follows:
8% for profits between the LPL of £5,715 and the UPL of £43,875
an additional 1% on all profits above the UPL
Changes to VAT Flat Rate Scheme
The second VAT test requiring a business to check that its total income is less than £187,500 has been removed altogether leaving only the first test – i.e. that a business' taxable income must be less than £150,000. The leaving test – i.e. the turnover at which a business must leave the flat rate scheme - has increased to £225,000.
Health and safety
Applies to businesses that operate across multiple authorities and opt to enter into a Primary Authority Partnership with one local authority of their choice
