Changes to business regulations 2012
A number of government departments issue their changes to regulations twice a year, on the common commencement dates (CCDs) 6 April and 1 October and tax changes tend to occur in January and April. See a summary of the changes you can expect to see in 2012 below. View changes from 2011 here.
 

Changes to VAT on salary-sacrifice arrangements

1 January 2012
 
From this date, and only for salary-sacrifice agreements made on or after 28 July 2011, HMRC will consider that the provision of a benefit via salary sacrifice to employees constitutes a supply of services for consideration and is therefore subject to VAT.

Benefits that will be affected include cycle to work schemes, childcare vouchers, and food and catering provided by employers.
 

Changes to income tax

April 2012

As announced in the 2011 Budget, the income tax personal allowance will increases by £630 to £8,105. The threshold at which the higher rate of 40% is paid will be reduced by £2,400 to £35,000. The basic rate will decrease to £34,370.
 

Statutory maternity, paternity and adoption pay increase

1 April 2012

Statutory maternity, paternity and adoption pay increases from £128.73 to £135.45 per week.

Statutory maternity, paternity and adoption pay increase

6 April 2012

Statutory sick pay increases from £81.60 to £85.85 per week.
 

Qualifying period for unfair dismissal increases

 
6 April 2012
 
The qualifying period of employment for employees to bring a claim of unfair dismissal will increase from one year to two years.

Tribunal claim fees introduced

 
6 April 2012
 
For the first time, a fee will of £250 will be introduced for bringing a case to tribunal. A further £1,000 will be charged if their claim is accepted and given a hearing date. Read more about the unfair dismissal and tribunal changes >

Lower earnings limit for national insurance contributions increases

 
6 April 2012
 
The lower earnings limit for primary Class 1 national insurance contributions increases from £102 to £107.

Changes to health and safety reporting requirements

 
6 April 2012
 
The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 have been amended so that the required period of incapacity following an injury caused by an accident at work, which triggers the employer's requirement to report the accident, will increase from more than three days to more than seven. The deadline by which the employer must report the accident will increase from 10 days to 15.
 

EU late payment rules

 
TBC – First six months of 2012
 
A European Directive will be implemented that makes standard 30-day invoice payment terms compulsory for all businesses. Businesses will be able to set 60-day terms by prior agreement. Read more about the EU Late Payments Directive >
 

Pensions auto-enrolment

 
October 2012
 
From this date, certain employers must automatically enrol all eligible employees not already participating in a workplace pension scheme into the employer's pension scheme or the National Employment Savings Trust pension scheme. The date of implementation depends on the number of employees in a business and PAYE codes. Read more about pensions and auto-enrolment >
 

To be confirmed ...

 
Registration with the Independent Safeguarding Authority (ISA)
The Government has reviewed the ISA and the vetting and barring scheme, and will launch a scaled-back scheme for individuals working with children and vulnerable adults, though a date for its implementation has yet to be announced.

Right to request 'time to train' for organisations with fewer than 250 employees
In 2010, the Apprenticeships, Children and Learning Act 2009 introduced a statutory right to make a request in relation to study or training for employees in organisations with 250 or more employees. This was expected to be rolled out to businesses with fewer than 250 employees in April 2011, but the Government has announced they will consult on the subject.
 
Access to Work scheme
According to the Government's equality strategy, it plans to reform the Access to Work scheme so that disabled people will be able to apply for jobs with secured funding for adaptations or equipment that will assist them in performing the role.
Flexible working for parents of children under 18
Currently, the right to request flexible working is available to parents of children aged under 17, parents of disabled children under 18 and carers of certain adults. From 6 April 2011, this legislation was meant to be extended to employees who are parents of children under the age of 18, but this proposal has been put on hold.
 
Parental leave increases
The amount of time a parent can take off following the birth or adoption of a child will increase from three to four months under EU law. At least one of the four months will not be transferable between parents. This was due to come into force on 8 March 2012, but the Government have announced that they will delay implimentation until 2013.
 
 
For more information or advice on implementing regulation changes,
call our member helpline on 0845 130 1722.