April 2008

From 6^th April 2008 HM Revenue and Customs have increased statutory rates and allowances. Amongst the changes:

• All income under £34,600 is subject to income tax of 20%, all income above that level is taxed at 40%
• The 10% income tax level is scrapped
• The rate of Statutory Sick pay increases to to £75.40
• The National Earnings Lower Earnings Limit (used to determine eligibility to maternity pay, statutory sick pay etc increases to £90, up from £87.
• The rate of Statutory Maternity, Paternity and Adoption Pay increases to £117.18 (from £112.75)

April is also a key time for employment law statutory changes, and this month sees the reduction in the threshold for Information and Consultation of Employees Regulations to businesses with 50 or more employees (down from 100), a similar reduction in the threshold for the requirement to consult with employees over changes to occupational pension schemes and the introduction of the Corporate Manslaughter and Corporate Homicide Act 2007, allowing manslaughter (homicide in Scotland) charges in the event of deaths due to management failures.

The next significant legislative developments are expected in October when, amongst other things, the national minimum wage will increase to £5.73 per hour.  When originally introduced in 1999, the national minimum wage was £3.60 per hour.