Things to look out for in 2024...
As 2023 draws to a close we take a brief look forward to some significant changes in store for 2024. There are forthcoming developments that will be of particular interest to those of you who regularly attend UK Training’s courses. The main topic areas affected are as follows...
Companies House Reforms
There are major changes coming to Companies House under the Economic Crime and Corporate Transparency Act. The Government has described them as ‘the most fundamental change to the purpose and role of Companies House, since its creation’. The far-reaching changes will turn Companies House from a passive recipient of information to a more active gatekeeper in the fight against financial crime.
The changes will come into effect during 2024/25 and will impact all UK registered companies and LLPs. There will be new obligations and requirements regarding identity verification, shareholder information, company names and addresses and restrictions on who can be a director. Also, for the first time, a requirement for companies to have a statutory email address, in addition to the company name and address. The Act will also abolish certain statutory registers and prohibit the submission of abridged accounts. It increases the powers available to Companies House to check information, enforce actions and impose penalties.
Preparing for the Companies House Reforms - View >>
New Corporate Fraud Offence
The same Act also includes new measures that hold companies liable if they profit from the fraudulent actions of their employees. It places the emphasis on the company to stop such practices and creates a new corporate offence of failure to prevent fraud. The maximum penalty an organisation can receive is an unlimited fine.
The New Offence of Failure to Prevent Fraud - View >>
VAT
The Government announced in 2021 that the threshold for which UK businesses become eligible for VAT would be frozen at £85,000 until the end of March 2024. This has now been extended for a further 2 years to the end of March 2026. This means that the VAT threshold has not changed since 2017 and will have remained the same for 9 years, bringing more small businesses into scope and recouping more income for the Treasury.
Corporation Tax
Effective planning and use of available reliefs, such as full expensing, will become increasingly important in 2024. New higher rates of tax have been in effect since 1st April 2023 and will be impacting those companies who will be submitting accounts from now on.
If your company made more than £250,000 profit, it must pay the main rate of Corporation Tax, which is 25%. If your company made a profit of £50,000 or less, the small profits rate applies, which is 19%. There may be an entitlement to Marginal Relief if company profits were between £50,000 and £250,000.
The Essentials of Corporation Tax - View >>
Payroll and HR/Employment Law
Several Acts of Parliament were passed in 2023 that will be implemented next year, which will be of special interest to parents and carers. Additional rights to leave (and in some cases pay) will be available for parents of children requiring neonatal care and for those with a caring responsibility. There will also be tweaks to the rules regarding flexible working, which will become a day-one right. Changes to paternity leave and pay are also in the pipeline but no date for implementation has been set.
From April 2024 the National Living Wage (the top tier of the National Minimum Wage) will apply to all workers over the age of 21. The Government is also making provisions to ensure that workers receiving the minimum wage receive the full value of the tips and gratuities they are given by customers in the hospitality sector.
There are several other measures that we expect to be introduced next year for which implementation dates have not yet been confirmed. These include a new duty to prevent sexual harassment, a statutory Code of Practice on ‘Firing and Rehiring’ and changes to the rules on 'continuous employment' and what constitutes a break in service.
International Trade
The new Border Target Operating Model starts in the UK from the end of January, which will impact businesses importing live animals, products of animal origin, food products and plants. Businesses importing these products from the EU will need to ensure they have checked whether products will need a Health Certificate or Phytosanitary Certificate and whether they need to enter the UK via a Border Control Post (BCP).
From March 2024 CHIEF will finally be shut down and all export entries will be done via the Customs Declaration Service (CDS). The date has been put back several times to allow traders more time to prepare.
Look out for the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which the UK has just signed a deal to join. The Partnership currently consists of 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. We anticipate that this will come into effect during the summer of 2024. The UK is also reviewing and discussing other Free Trade Agreements, such as a potential Treaty with India.
Also towards the end of 2024 in Northern Ireland, under the Windsor framework, the red and green lanes will begin to operate for goods moving from Great Britain. Plus, look out for the new Single Trade Window which the Government says it will bring online at the end of 2024.
International Trade & Customs courses - View >>
Data Protection
The Government plans to replace the UK General Data Protection Regulation with a new system that will have a similar level of protection for ordinary citizens but will be less of an administrative burden for organisations. The new Data Protection and Digital Information (No 2) Bill should complete its passage through Parliament early in 2024. However, we expected that to be the case in 2023! Progress on this legislation has stuttered and there are still major points of contention to be settled.
Conclusion
The economy is still struggling from the treble shocks of Brexit, Covid and the consequences of war. Next year will be an election year so there will be some uncertainty regarding long-term public policy. Businesses will be desperate to see a period of relative stability where they can plan for the future and help grow the economy.
Whatever your business, everyone at UK Training wishes you the best of luck and we hope that 2024 is a successful year for you all.
Written by Paul Murphy
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