05 July 2024

I’m sure you’ll be aware by now, and certainly not shocked, that we’ve got a new government.

How can we expect this to impact legislation and policy surrounding payroll?

To start, the Labour manifesto should be a good guide of what we can expect to come, so here’s a reminder.

Tax

  • Commitment to not raise headline income tax and VAT rates
  • Address “unfairness in the tax system” – abolish ‘non-dom’ status

National Insurance

  • Commitment to not raise the headline rates of National Insurance

Minimum Wage

  • Change the remit of the independent Low Pay Commission so it accounts for the cost of living
  • Remove age bands, so all adults are entitled to the same minimum wage

Pensions

  • Retain the triple lock for the state pension
  • Adopt reforms to workplace pensions

Parental Leave and Pay

  • Review the parental leave system
  • Introduce basic rights from day one of employment

Statutory Payments

  • Reform Statutory Sick Pay
  • Introduce basic rights from day one of employment

HMRC

  • Modernise HMRC and change laws to tackle tax avoidance
  • Strengthen HMRC’s powers, invest in new technology and build capacity within HMRC

Other

  • Create a Single Enforcement Body to ensure employment rights are upheld
  • Ban zero hours contracts; end fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal

Only time will time to what extent today’s news will truly effect the payroll world. As always, we will be keeping a close eye on any changes and keep you fully updated as we learn more.


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