As a small business owner, it is key that you know when new regulations come into effect. Otherwise, you could damage your competitiveness, by failing to meet changing consumer circumstances and face fines for not adhering to regulation. Here are the important dates you need to remember in 2017.
31st March – Article 50 trigger
Last year, UK Prime Minister Theresa May announced that the government would trigger Article 50 of the Lisbon Treaty, by 31st March 2017. This will initiate the two-year process of leaving the EU, which will forever-alter the regulatory landscape for all businesses. We do not know how Brexit will impact employment law, but it could result in a reduction of red tape, possibly bringing benefits to your firm.
Whitehall has implied that it will significantly reduce corporation tax, from the current 20%, potentially lowering your operating costs as a small company. Also in her recent 12-point plan, May assured that employee rights will be respected, post-Brexit, while the government has put measures in place to ensure that small businesses can still access financing, even if Brexit lowers confidence in the UK’s banks. Set up Google alerts for Brexit, to stay abreast of any legal changes after Article 50 is triggered.
1st April – Business Rates Review
On 1st April 2017, the business rates for companies in England, Wales and Scotland, will be re-evaluated, to fall in-line with increasing property values. There used to be a 12.5% cap on the maximum amount that rates could increase by, per annum, but Whitehall has now abolished this. Some firms will face business rate increases of 42% in 2017, so prepare for any potential rises now.
1st – 6th April – Employment Law Changes
The start of the new tax year will bring rate rises for small business owners, inflating your staffing costs. On 1st April, the National Living Wage will climb to £7.50 per hour, for staff aged above 25, while the National Minimum Wage will increase by 60p for every UK employee – even apprentices. On 2nd April, maternity, paternity, shared and adoption pay will rise to £140.98 per week and on 6th April, statutory sick pay will increase to £89.35 per week. Adjust your cash flow projections accordingly.
6th April – Gender Pay & Apprenticeship Levy
There are two more developments that you may need to be aware of, which will occur on 6th April 2017. First, new British gender pay gap laws will come into force on this date, with firms obligated to begin collecting data the day before. This only applies, however, to businesses which have 250 or more members of staff, so it is unlikely to impose any extra administrative burdens on smaller firms.
The apprenticeship levy will also be rolled out. This will obligate you to pay 0.5% on the total wage of apprentices, if your payroll eclipses £2.8m in the current tax year, or £3m in the next tax year. If as an English-based firm, you wish to train your apprentices, you will have to contribute 10% of the expenses, starting from May. This does not apply if you have less than 50 workers – Whitehall will cover 100% of the costs for apprentices aged 16 to 18 and in special cases, those aged 19 to 24 as well.
Autumn 2017 – Small Business Commissioner
It is generally believed that Whitehall’s Small Business Commissioner Scheme will come into effect in Autumn of this year. This initiative is designed to provide you with support in several key areas, helping you expand operations. This includes assistance with complaints, support in payment disputes with bigger firms, as well as the provision of guidance in basic contractual principals and dispute resolution.
2017 – 2018 – Pension Auto-Enrolment
One of the big new tax changes for small business owners over the next year, is pension auto-enrolment. Depending on the size of your firm, you will have to register you employees in a work place pension scheme, by a specific date, or risk facing financial penalties, so it is key that you plan ahead. Around 500,000 small businesses will hit their staging date between 2017 and 2018, so you could very well be affected. Check the Pension Regulator’s website to learn your firm’s staging date.
Expert assistance
Therefore, there are a number of new regulations coming in this year which could increase the administrative burden that falls on your shoulders as a small business owner. You may wish to enlist expert aid in handling these obligations, freeing up your time to focus on making your venture a success. You can access business and legal advice via Turner Little’s corporate services, allowing you to gain the expert assistance you require to handle regulatory obligations as efficiently as possible.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
