It’s hard to believe that we are already in 2019.
This year, there are a few different changes to legislation that will come into force and which you should be aware of in your business.
There will, of course, be more new laws and other legislative amendments throughout the year, but for now, here is a summary of the changes that we already know about.
National Living Wage Will Increase
From April, the UK National Living Wage will increase from £7.83 to £8.21 per hour. This will benefit around 2.4million workers and is an average £690 annual pay rise for full-time employees.
Other National Wage Rate changes are as follows: –
Age Group New Rate Current Rate
25 & Over £8.21 £7.83
21 to 24 £7.70 £7.38
18 to 20 £6.15 £5.90
Under 18 £4.35 £4.20
Apprentice £3.90 £3.70
Income Tax Thresholds Will Increase
The tax-free Personal Allowance will increase by another £650 in April to £12,500 – this is the amount you earn before you have to start paying income tax.
This means a basic rate taxpayer will pay £1,205 less tax in 2019-20 than in 2010-11.
And the amount that someone will have to earn before they start paying tax at the Higher Rate Threshold of 40% will increase from £46,350 to £50,000 in April, meaning that there is an additional £730 for people who earn above £50,000.
However, those earning more than £100,000 will not benefit as much, or even at all.
National Minimum Wage For Sleep-Ins
Last year, the Court of Appeal decided that people who work sleep-in shifts, i.e. nurses and care workers, are not entitled to the National Minimum Wage for any time that they spend sleeping and are ‘available for work’ but not ‘actually working’.
A request to appeal this decision was lodged with the Supreme Court and a decision is expected in 2019.
Pension Contributions
The minimum contributions for auto-enrolment pension schemes will increase for both employers and employees from April.
Current legislation means that employers must contribute a minimum of 2% of an employee’s pre-tax salary, with the employee contributing 3%.
Under the new legislation, employers and employees will now have to contribute a minimum of 3% and 5% respectively.
Itemised Payslips
From 6th April, a person’s legal right to receive a payslip will be extended so as to include workers as well as employees, such as contractors and freelancers.
Employers will also be required to include the total number of hours worked on payslips for employees whose wages vary depending on how much time they have worked. The payslip will also need to include the total number of hours worked for variable pay rates.
Sick Pay and Statutory Family Pay Rates To Increase
Statutory Family Pay Rates are likely to increase to £148.68 in April. This rate will apply to Maternity Pay, Adoption Pay, Paternity Pay, Shared Parental Pay and Maternity Allowance.
The weekly rate for Statutory Sick Pay is likely to increase to £94.25 from 6th April.
Parental Bereavement Leave and Pay
It was confirmed last year that the Government will be introducing a right for bereaved parents to take paid time off work.
Under the current proposals, parents who have suffered a bereavement will be able to take leave as a single two-week period, as two separate periods of one week each, or as a single week.
They will be entitled to take such leave within 56 weeks of their child’s death.
It is expected that this new legislation will come into effect in April 2020, but employers should start preparing for it this year.
Employers may also decide to introduce their own Bereavement Leave Policy if they do not already have one.
Further Changes To The Apprenticeship Levy To Support Employers
From April, larger businesses will be able to invest up to 25% of their Apprenticeship Levy into supporting apprentices in their own supply chain.
Further, some employers will only be required to pay half of what they currently pay for apprenticeship training – down from 10% to 5%. The Government will be paying the remaining 95%.
The Annual Investment Allowance Will Increase
The Annual Investment Allowance increased from £200,000 to £1million on 1st January 2019. This will end on 31st December 2020 and will help businesses to invest and grow.
In addition to this, from October 2018, businesses are now able to deduct 2% of the cost of any new non-residential structures and buildings from their profits before they pay tax.
Post-Brexit Immigration Rules
What are likely to possibly be the most significant changes to occur in 2019 are those relating to the employment of EU nationals, regardless of whether a deal on the UK’s exit from the EU is agreed or not.
Once the UK leaves the EU, free-movement will end. However, it is highly likely that this will be delayed pending legislation to repeal current laws. It will also take time to put into place the practical arrangements necessary to make these changes possible.
The Government has introduced a scheme in which EU workers who are already living in the UK will be able to apply for “settled status”, in order that they will be able to continue to live and work in the UK indefinitely.
However, employers should be aware that, moving forwards, the employment of EU nationals is highly likely to be subject to the same restrictions as those involving the employment of other foreign nationals. Employers will, therefore, need to adapt their recruitment processes as a result.
If you would like any further information on how these changes will affect you and your business, please email us at [email protected] We’d be happy to help.