HLAS

As has been widely expected in the last few weeks, the Chancellor, Rachel Reeves, made some significant changes to the Employers National Insurance (NI) rate and threshold in the Autumn Budget. From 1 April 2025, the rate for Employers National Insurance (NI) will increase from 13.8% to 15%. At the same time, the level at which employers start paying national insurance on each employee’s salary will be reduced from £9,100 per year to £5,000. The combination of these two changes means a potentially significant increase in payroll costs for businesses. To counteract this, the employment allowance will be increased from [...]

As part of a series of recent announcements by the Chancellor, the government is promoting increased adoption of electronic invoicing (e-invoicing). HM Revenue and Customs (HMRC) will soon open a consultation aimed at encouraging the wider use of e-invoicing, with the goals of simplifying business transactions, reducing administrative burdens, and, in particular, reducing tax return errors to help HMRC ‘close the tax gap.’ While e-invoicing clearly offers advantages for HMRC, it also brings significant benefits for businesses. Benefits of E-invoicing for Businesses: Improved cash flow: E-invoicing speeds up payment processes by automating invoice approvals, helping businesses receive payments more quickly. [...]

As of 1st October, the Employment (Allocation of Tips) Act has come into effect, ensuring that workers retain 100% of the tips, gratuities, and service charges they earn. While many employers already pass tips directly to their staff, this new legislation closes any remaining loopholes to guarantee that all tips reach workers. What Has Changed for Employers? Under the new legislation, employers are legally obligated to pass all tips, gratuities, and service charges directly to staff without any deductions. This means that if a customer leaves a tip—whether in cash or by card—it must be given to the workers. Businesses [...]

Each month, the Office for National Statistics (ONS) publishes data on inflation and other economic indicators. In October, they reported that their measure of inflation, the Consumer Prices Index (CPI), dropped unexpectedly to 1.7% for the year ending in September. This marks the lowest inflation rate in over three years. The primary factors behind this reduction were decreases in airfares and petrol prices. Given that the Bank of England has a target inflation rate of 2%, this dip could allow for a further interest rate cut when the Bank meets on 7 November. Following this decrease, there is now also [...]

Proposed Major Changes to Workers' Rights In October, the government published the Employment Rights Bill, aimed at enhancing economic security and growth for businesses, workers, and communities across the UK. The bill introduces 28 individual employment reforms, addressing issues such as exploitative zero-hours contracts and fire-and-rehire practices. It will also introduce “day one” rights for millions of workers, covering paternity, parental, and bereavement leave. Additionally, statutory sick pay provisions will be strengthened by removing the lower earnings limit for all workers and eliminating the waiting period before eligibility for sick pay begins. Protections from unfair dismissal, previously subject to a two-year [...]

Good news for workers, but not so much for businesses On 30 October 2024, Rachel Reeves delivered her inaugural Budget speech, marking the first time a female Chancellor of the Exchequer presented the Budget. This historic occasion was already noteworthy, regardless of the content. The Chancellor’s address spanned 76 minutes, beginning with her assertion that tough choices were necessary due to a £22 billion deficit in public finances left by the previous administration. Upon conclusion, the Budget appeared less severe than some may have anticipated—a likely effect the Chancellor aimed for, given that the principal tax increase, a rise in [...]

THE BUDGET AND WHAT IT MEANS TO YOU I AM A ‘WORKING PERSON’ As promised in the Labour party manifesto, the rates of income tax on all income types remain static until at least 5 April 2026. The rates of national insurance contributions paid by employees and the self-employed also remain static until at least 5 April 2026. Recipients of the national minimum wage will see uplifts from April 2025. However, many working people are also business owners, landlords and savers. See the relevant sections below for tax increases that will apply. Employers are also being pinched in this budget [...]

During the Environment Agency’s Flood Action Week, which ran from 14 to 20 October, they issued a press release urging farmers in Devon and Cornwall not to take chances and gamble high-risk crops against a changing climate. The Environment Agency is concerned about the effect heavy and prolonged rainfall is having on the farmland in Devon and Cornwall, especially in areas with steep slopes. The wet year has delayed harvest time for some farmers. This has left less time available for planting cover crops that will act to bind the soil and reduce runoff during the winter’s wet weather. When [...]

Law practices hold sensitive information and can often be the target of cyber attacks. The National Cyber Security Centre (NCSC) has published some specific cyber security tips to help barristers, solicitors and legal professionals in firms of all sizes protect themselves. The tips they provide are good practice for businesses of all types. Here’s a summary of what NCSC suggests. Backups are important Regularly taking backups, and testing that you can restore them, allows you to be able to recover and access your client or customer data even if you are the victim of a computer virus or ransomware attack. [...]

Samantha Fairweather, the director of Essex-based Fairweather Construction Ltd, has been disqualified from serving as a company director for eight years, after it was discovered that the firm took in excess of £300,000 in deposits for home improvement projects it failed to deliver. Fairweather, 53, had been the sole director of the company since its incorporation in 2014. Her firm, which marketed itself as a specialist in residential building projects such as window installations and conservatories, ceased operations in September 2022, owing creditors more than £700,000, including over £100,000 in unpaid taxes to HMRC. Financial mismanagement and unfinished projects Despite [...]