Businesses are now required to submit real-time PAYE info to HM Revenue & Customs
Complying with legislation is an integral part of running a successful business.
As a business owner, it is up to you to make sure that your human resources department are up to date with current legislation and have amended associated documents to reflect the changes. In this article, we will explain five legislation changes which have affected Human Resources departments in the UK this year.
New PAYE real time information requirements
This year HMRC introduced the requirement of providing real-time information as part of PAYE. Although most companies were required to provide real-time information from April this year, there were some smaller companies which were granted permission to have an extra six months to become compliant. Seeing as the six months has now passed, all companies should now be providing HM Revenue and Customs with real time PAYE information.
It is essential that PAYE returns are submitted to HMRC either before or on the date that payments are made to employees. Businesses can provide their returns electronically through HMRC’s Full Payment Submission system. The real time information provided should include the amount paid, any deductions including National Insurance Contributions and Income Tax and the starting and leaving date where applicable.
Statutory increases to maternity / paternity pay and sickness
On 6th April 2013, it was announced that there would be a rise in statutory payments regarding maternity pay, paternity pay and sickness pay. Maternity and paternity pay rose from £135.45 to £136.78 a week. In order to qualify for maternity or paternity, pay individuals must now earn at least £109.00 a week, whereas before 6th April 2013 it was £107.00 a week. There has also been a rise in statutory sick pay. Since 6th April 2013, it increased from £85.85 a week to £86.70. In order to qualify for sick pay, employees must now earn £109.00 a week.
Cap on unfair dismissal
This year it was announced that there would be a cap on the compensation individuals could be awarded in claims of unfair dismissal. The compensation will now equal one year’s salary, rather than the existing limit of £74,200. In order to avoid cases of unfair dismissal, human resources should ensure that the appropriate procedures are in place to prevent unfair treatment and discrimination.
Collective Redundancy Consultation
The legislation now states that where a business is proposing to make one hundred or more employees redundant, there must be a forty-five day consultation period. Before this new legislation came into place, the consultation period was ninety days. Businesses that are planning on making fewer than one hundred redundancies but more than twenty also must ensure they carry out the thirty days of consultation as required by legislation.
Parents are now entitled to eighteen weeks off work
It is important that your Human Resources department are up to date on legislation regarding parental leave. On 8th March 2013, it was announced that parental leave would increase from thirteen to eighteen weeks. It is essential that human resources update their handbooks and any associated documents so that employees are aware of the changes to the legislation. Any employee applying for parental leave should now be entitled to have up to eighteen weeks off work.
This year we saw many changes in legislation that have affected human resources. It is essential that a business’s human resources department comply with legislation and ensure that employees are made aware of the changes. This can be done by amending employee handbooks, changing associated documents, sending out emails and publishing company blog posts. HR departments that fail to implement such changes may find themselves in trouble if their organisation ends up facing lawsuits due to their failure to comply with legislation.
If you'd like to discuss any of these changes or are looking for great advice on any HR issues please get in touch. We offer a free HR health check so what's to lose?