Upcoming in 2020

UK departure from EU:

The United Kingdom officially left the European Union on 31 January. It has now entered the Transition Period, during which the terms defining the ongoing relationship between the parties will be negotiated. This Transition Period is intended to last until 31 December, although an extension can be agreed if requested by the UK no later than 30 June. However, the Prime Minister has indicated that he will not seek any such extension. At the end of the Transition Period, if nothing to the contrary has been agreed, the UK will begin to trade under WTO rules. UK employment laws, and the rights of EU workers to move, live and work throughout the UK, will remain unchanged throughout the Transition Period.

As we enter a new financial year on 6 April, note the following statutory changes that will take effect:

“Workers” as well as “employees” will be entitled to receive a statement of written particulars (ie. their basic terms and conditions of employment) and the right to receive this will exist from day one (rather than after two months).

Paid parental bereavement leave will grant an employee who loses a child under age 18, or suffers a stillbirth after 24 weeks, two weeks’ paid statutory leave.

Termination payments made to employees in excess of £30,000 will be liable not only to income tax but employer’s National Insurance Contributions.

The obligation to determine whether the IR35 tax provisions in relation to a particular contractor apply will fall on the private business engaging the contractor, provided the business has a turnover of £10.2 m or 50 plus employees. If the business decides IR35 does not apply, it must deduct appropriate tax at source.

Statutory minimums increase from 6 April 2020:

SMP/SAP/SPP/ShPP/SPBP: £151.20
Sick pay: £95.85
National Living Wage for 25’s and over: £8.72 per hour