Essential updates for employers: Summer 2024

Here, we explain the crucial updates and developments affecting employers and employees in the UK. Whether you’re an experienced employer or just starting out, this guide aims to equip you with the knowledge and tools needed to thrive amid the evolving landscape of UK employment law and regulations. 

Employment Allowance 

Employment Allowance is a valuable relief for eligible businesses in the UK. Businesses and charities who had a employers’ NIC liability of less than £100,000 in the previous tax year may be eligible. If you think you are entitled to the relief, it’s important to ensure this is reflected on your payroll and could result in your business savings £5,000 a year. For more information, read our article. 

Redundancy protections extended for pregnant women and new parents 

From 6th April 2024, the redundancy protection period was extended during pregnancy and maternity and now starts when the employee tells their employer they are pregnant and ends 18 months from the date the baby is born. 

The redundancy protection period for adoptive parents starts the day someone’s adoption leave begins and ends 18 months from the date the adoption placement starts or the date the child enters England, Scotland or Wales if it is an overseas adoption. 

The redundancy protection period for those taking shared parental leave starts the day shared parental leave begins. If the employee takes less than six weeks leave, the protected period ends of the last day of the block of leave. If the employee takes six weeks or more continuous leave the protected period ends 18 months from the date the baby is born. 

Commuting costs for hybrid workers 

Since the Covid-19 pandemic, working arrangements have changed and many continue to work from home for some of their working week. HMRC has updated its guidance on ordinary commuting and private travel to include examples for hybrid workers. 

Ordinary commuting is travel between home and a permanent workplace and no tax relief is available for these costs. 

For hybrid workers, their home does not become a workplace due to their working arrangements. Therefore, there remains no tax relief for the cost of travel between work and home. 

Reimbursement by employers of ordinary commuting should be included on the payroll and will be taxable and subject to NIC. If an employer pays for commuting costs for employees, this is a benefit in kind and may need to be included on a P11D. 

Are training costs allowable expenses? 

Staff training and development is important to ensure your employees are working well and using approved practices. Generally, the cost of these will be allowable as a tax deduction and the benefit to the employee is tax-free. 

Where employers pay for training of employees, and the payment is wholly and exclusively for the purpose of existing or future trade and it is “expenditure on training which is intended to ‘impart, instil, improve or reinforce any knowledge, skills or personal qualities”, it is allowable. 

The rules for sole traders are less simple, and treatment is determined by whether the training costs are capital or non-capital. Capital training costs, which include initial training and training to develop new skills and retraining with a view to changing occupation are not allowable. 

P11D deadline – 6th July 

If you haven’t submitted your P11D already, the deadline was the 6th July so do make sure you have this in hand. If you are late in submitting, check out our information here. 

The electronic payment of Class 1A National Insurance Contributions is due by 22nd July. When making payments to HMRC, always ensure you’re using the correct reference. When paying 2023/24 Class 1A NICs, the reference will be your account office reference followed by 2413. 

Right to work 

Before employment begins, employers must carry out right to work checks. These checks include obtaining evidence of an individual's right to work, checking the evidence is genuine and relate to the person you are going to employ.  

You should make a copy of the documentation and retain this in your records. If you carry out any digital checks, you should record the outcome of the check, for example by taking a screenshot or keeping any email confirmations. All documents must be retained for the duration of employment and the following two years after an individual leaves. 

How TaxAssist can help  

This guide has helpful information about payroll changes. Remember, TaxAssist Accountants has a team that can help with all your payroll needs. Contact us today on 0121 725 4120 or use our online contact form.    

Last updated: 18th July 2024