New Government Rules And Regulations 2024 – What UK Small Business Owners Need To Know
There are a number of new rules and regulations UK small business owners need to be aware of in 2024. Some I have mentioned before, in my UK Spring Budget 2024 post – you can find that here And with others the dates have passed, but it is a good idea to refresh your memory and action them if you have not already done so.
I have listed a summary of the new rules and regulations below, together with some helpful links.
1 January 2024:
Reporting rules for digital platforms
Digital platforms like Airbnb, Etsy, Vinted, Uber and Amazon, that are used by individuals to sell goods or services are required to report information to HM Revenue & Customs about the income of sellers using the platform. This is part of the government’s efforts to clampdown on tax evasion from users selling online.
The government defines digital platforms as; “apps and websites which facilitate the provision of goods and services such as the provision of taxi and private hire services, food delivery services, freelance work and the letting of short-term accommodation”.
If you earned more than £1,000 from trading as self-employed in the last tax year you must register for Self Assessment and submit a tax return.
Those platforms participating, must provide a copy of the information to the taxpayer to help them comply with tax obligations under the Organisation for Economic Co-operation and Development (OECD) rules,
Collection of the seller’s data is required from 1 January 2024, and must be reported to HMRC from January 2025.
Online marketplaces will not be asked to share data about sellers who make fewer than 30 transactions or €2,000 (£1,735) a year.
2 January 2024:
15 hours per week of free childcare
Free childcare in England is being extended to all children over nine months. This applies to working parents who individually, earn more than £8,670 but, less than £100,000 adjusted net income per year.
It is being introduced as follows:
From April 2024, all working parents of two-year-olds can access 15 hours per week.
From September 2024, all working parents of children aged between nine months and three-years-old can access 15 hours per week.
From September 2025 all working parents of children aged between nine months and three-years-old can access 30 hours free childcare per week.
Parents can apply for the first stage of the rollout from 2 January 2024.
Helpful links:
4 March 2024:
Changes to UK company law
The government’s Economic Crime and Corporate Transparency Act will introduce several changes to company law. These are designed to prevent organised criminals and fraud.
The government is aiming to introduce the following measures:
stronger checks on company names
new rules for registered office addresses
a requirement for all companies to supply a registered email address
a requirement for all companies to confirm they’re forming the company for a lawful purpose when they incorporate, and to confirm its intended future activities will be lawful on their confirmation
the ability to annotate the register when information appears confusing or misleading
taking steps to clean up the register, using data matching to identify and remove inaccurate information
sharing data with other government departments and law enforcement agencies
1 April 2024:
National Minimum Wage and Living Wage
The National Living Wage rises from £10.42 to £11.44 an hour in April 2024. In addition, eligibility is extended with the minimum age to qualify for the pay rate changing from, 23 to 21 years old.
The National Minimum Wage for 18-20 year-olds, increases to £8.60 per hour – a £1.11 hourly rise on the 2023 rate.
The rate for 16-17 year-olds, and apprentices will increase to £6.40.
Increase in VAT threshold
As announced in the 2024 Spring Budget, the threshold at which small businesses must register to pay valued added tax (VAT) will be increased from £85,000 to £90,000.
The VAT de-registration threshold will increase from £83,000 to £88,000. If your VAT sales drop below that level you can de-register.
Business rates relief extended – England
The UK government’s 75% business rates relief for retail, hospitality and leisure businesses has been extended from 1 April 2024 until 31 March 2025. The relief applies up to a cash cap limit of £110,000 per business.
Business rates relief extended – reduced rate in Wales
The Welsh government’s business rates relief for retail, hospitality and leisure businesses has been reduced from 75% to 40% from 1 April 2024 until 31 March 2025. Again, the relief applies up to a cash cap limit of £110,000 per business.
6 April 2024:
National insurance cuts
The main rate Class 4 National Insurance Contributions (NICs) for the self-employed, will be cut reducing the rate from 9% to 6%. Combined with the abolition of Class 2 NICs.
The main rate of employee National Insurance, will decrease from 10% to 8% .
Reduction in dividend tax allowance
For 2024/25, the tax-free allowance under which no tax is payable on dividends, will be reduced from £1,000 to £500.
Reduction in capital gains tax allowance
For 2024/25, the tax-free allowance under which no tax is payable on capital gains, will be reduced from £6,000 to £3,000
Flexible working changes
Employees have the right to request flexible working from day one of a new job, according to new regulations.
Previously, workers needed to have worked for the employer for at least 26 weeks and could make one request to work flexibly – such as; working from home, working part-time, following staggered hours, or adopting flexitime, every 12 months.
Other rules allow employees to make two flexible working requests in a 12-month period, and reduce the maximum time an employer can take to make a decision on a flexible working request – from three months to two months.
This rule applies across the UK
Carer’s leave
The Carer’s Leave Act 2023 (Commencement) Regulations 2023 gives employees caring for a dependant with a long-term care need, the statutory entitlement to one week of flexible unpaid leave per year.
This right applies from the first day of employment, for employees across the UK.
Protection from Redundancy (Pregnancy and Family Leave) Act
Redundancy protections that apply to employees on maternity, adoption, and shared parental leave, are extended to pregnant women, and to parents who have recently returned to work following family-related leave.
The rules are that eligible employees, “are entitled to be offered (before the end of [their] employment under [their] existing contract) alternative employment with [their] employer or an associated employer, in any suitable vacancy available that offers work appropriate for [them] and terms not substantially worse than [their] previous job”.
This rules applies across the UK
Change to paternity leave
The change, which applies to fathers of a child who is due after 6 April 2024, or placed for an adoption on, or after 6 April, can take paternity leave as a single period of one or two weeks, or as two separate periods of a week.
Leave must finish within 52 weeks of the birth (or due date, if the baby is early), or within 52 weeks of the child’s adoption.
1 May 2024:
Increase to Companies House fees
Companies House fees will increase dramatically following a review of the costs incurred by implementing the Economic Crime and Corporate Transparency Act
Listed below are some of the more common fees that will be increased:
Incorporating a limited company online: £12 to £50
Registering a community interest company online: £27 to £65
Incorporating a limited company by post: £40 to £71
Changing a limited company name: £8 to £20
1 July 2024:
Fair distribution of tips to staff
The Employment (Allocation of Tips) Act 2023, which covers England, Scotland and Wales, is aimed at ensuring the fair and transparent allocation of all tips, gratuities, and service charges to staff.
A draft code of practice published by the government says employers must:
pass on all tips and service charges to workers without deductions, except in very limited scenarios, such as deduction of income tax.
ensure that tips are distributed in a fair and transparent manner when the employer takes control, or exerts significant influence, over their distribution.
have regard to the code of practice on fairness and transparency of tip distribution when they are distributing or influencing the distribution of tips.
maintain a written policy on how tips are dealt with at their place of business, and ensure this policy is made available to all their workers.
maintain a record of all tips paid at their place of business and their allocation and distribution between each worker, to which workers have the right to request access.
September 2024:
Workers’ right to request predictable working pattern
The Workers (Predictable Terms and Conditions) Act 2023 provides a new statutory right for workers, including agency workers, to request a more predictable working pattern.
Acas says: “If a worker’s existing working pattern lacks predictability in terms of the hours they work, the times they work or the length of their contract, they will be able to make a formal request to change their working pattern to make it more predictable. Once a worker has made their request, their business will be required to notify them of their decision within one month.”
Helpful links:
October 2024:
Duty on employers to prevent sexual harassment of employees
The Worker Protection (Amendment of Equality Act 2010) Act make employers liable for harassment of their employees by third parties (such as customers or clients) and introduces a specific duty on employers to take all reasonable steps to prevent the sexual harassment of staff.
Helpful links:
Varous Dates 2024:
Rules on food imports from EU to the UK
After being delayed on numerous occasions, these rules, will now take affect and the government is introducing these new rules from 31 January 2024.
The new rules impose extra checks on animal and plant products being imported into Great Britain from the European Union. The rules have previously been delayed five times.
The government says, the new checks are needed to prevent diseases and pests being brought into the UK. Also, to level the playing field for UK exporters who already have to deal with checks on their exports to the EU.
However, the government’s own estimates say the changes will increase costs for UK importers by £300m, and raise food inflation by 0.2% over the next three years.
The requirement for those importing meat and dairy products to get verification from a vet, in the country of origin that the products are free of disease is a major change.
The changes being introduced are as follows:
January 2024:
The introduction of health certification on imports from the EU/EFTA of medium risk.
The introduction of health certification on imports of high-risk food and feed of non-animal origin.
The introduction of import notifications for EU/EFTA products (i.e. not qualifying Northern Irish goods) from the island of Ireland to Great Britain.
The introduction of the Common Health Entry Document (CHED) import notification in place of the IMP for import notifications of EU/EFTA imports of products of animal origin (POAO) and for high risk food and feed of non-animal origin (HRFNAO) imported into GB via the EU/EFTA
YOUR THOUGHTS
What’s your thoughts on the new rules and regulations for Small Businesses in the UK? Is there anything listed here that you are pleased to read? Let me know what you think.
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