Holiday pay and entitlement reforms
Coming into force from 1 January 2024, the Working Time Regulations, as amended by The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, introduced reforms that simplify holiday pay and entitlements.
Following Brexit, any European laws that were retained in the UK automatically expired on December 31 unless legislation was brought in to keep them. The Employment Rights Regulations 2023 do just that and are applicable across the UK. As well as reinstating some EU laws, these regulations make several changes to existing laws.
These reforms include changes that affect rates of holiday pay and annual leave. They also cover handling irregular hours and part-year workers, accrual of COVID-19 carryover of leave, and rolled-up holiday pay.
The Regulations define what an irregular hours or part-year worker is and makes changes for how their holiday entitlement for holiday years beginning 1 April 2024 and onwards are accrued.
Employers will need to calculate holiday entitlement for such workers at 12.07% of the hours worked in any pay period. This does not apply to the calculations for regular hours workers.
The Regulations specify that all full-year workers are legally entitled to 5.6 weeks of paid statutory holiday entitlement per year. These are split into two pots.
- Four weeks - the original EU leave entitlement - must be paid at the employee's 'normal' rate of pay and the regulations now specify that this includes overtime pay, commission and allowances.
- The remaining 1.6 weeks - an addition made by the UK - only have to be paid at the employee's 'basic' rate of pay.
The government has produced guidance containing examples and calculation methods based on the legal minimums set out in the Regulations.
Of course, many workers have contracts that entitle them to holiday that exceeds the statutory minimum. Or the changes may make the standard holiday clauses used in an employer’s employment contract no longer legal. Businesses are therefore encouraged to first check individual employment contracts, and if necessary, seek independent legal advice.
If you need any help with running your payroll, please get in touch with us. We will be very happy to help you!
Self Assessment tax return and payment of tax bill due by 31 January 2024
The deadline for filing Self Assessment tax returns and paying tax bills for the 2022/23 tax year is Wednesday 31 January 2024 at 11:59pm.
HM Revenue and Customs is encouraging taxpayers to get their tax return filed as early as possible so that they can know how much tax they owe and be ready to make the payment by 31 January.
Support is available for taxpayers that are unable to pay in full. However, failing to file and pay tax by the deadline will result in penalties and interest.
If you need any help with filing your Self Assessment tax return, please call us and we will be happy to help!
Great Taste Awards - Entries open in January 2024
For food or drink producers, the Guild of Fine Food's Great Taste awards can be an excellent way to promote products and get them noticed by more consumers. Entries for the 2024 awards have now started.
According to the Guild, winning a Great Taste award encourages confidence and commercial success for small businesses, as well as motivating your team and generating greater awareness for products. Entering also provides an opportunity to get cost-effective feedback from industry experts since each entry will be given constructive feedback, regardless of whether the produce gets an award.
A panel of over 500 experts will be used to test food or drink who then issue a star rating. 1, 2, and 3-star winners can then use branded labels, bunting, and aprons to promote their products. Logo artwork and certificates are also available. The Guild will also help with finding potential UK stockists.
Guild members have a fortnight head start on entry and a lower entry cost during 8 - 22 January. General entry opens on 22 January 2024 and closes on 6 February 2024.
Judging will take place during March to June 2024 with results being announced and feedback given on 30 July 2024.
Funding for needle free medicine delivery available
Innovate UK, a part of UK Research and Innovation, are aiming to invest up to £1 million in projects that will support developing and manufacturing needle free technologies to administer medicine.
The funding is available for feasibility studies that investigate the technologies enabling administering medicine without needles.
A grant funding request must be between £50,000 and £100,000 and needs to show how the project will improve the productivity, competitiveness and growth for at least one UK micro, small or medium sized enterprise involved in the project.
The deadline for applications is 11am on 14 February 2024.
Support for flood damage available
Storm Henk caused widespread flooding and damage across England during the first few days of 2024, affecting households and businesses alike. Following this, the government has announced that financial support is available to eligible areas in England that have experienced exceptional localised flooding.
In these eligible areas, the following help will be made available to significantly affected and eligible businesses:
- 100% business rates relief for at least 3 months;
- Up to £2,500 from the Business Recovery Grant that can be applied for by small-to-medium sized businesses to help quickly return to business as usual;
- £5,000 from the Property Flood Resilience Repair Grant Scheme to help business property owners make their business more resilient to future flooding; and
- £25,000 through the Farming Recovery Land towards repair and reinstatement costs for farmers suffering uninsurable damage to their land.
This help is available through a scheme called the Flood Recovery Framework. This framework is used to help support councils and communities in exceptional circumstances after severe flooding.
The support can be accessed through councils in the eligible areas. The councils will announce additional details on who is eligible and how to apply.
