Things to look out for in 2023
As we enter 2023, it is time to take a brief look at some of the significant changes we have in store over the next 12 months. 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...
The EU Retained Law (Revocation and Removal) Bill
The Government has announced that it intends to phase out more than 2,400 EU Regulations that still apply after Brexit. The Bill creates an automatic ‘sunset clause’ that means the Regulations will expire at the end of next year, meaning they can no longer be enforced. The Government can choose to enact new domestic Regulations to replace the EU ones it considers to be essential or important.
If the Bill is passed by Parliament it will have a serious impact on many sectors of the economy, including employment law, health and safety, food standards, chemicals and the environment.
Companies House Reforms
There are major changes coming to Companies House under the Economic Crime and Corporate Transparency Bill. The Government has described the Bill 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 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. The Bill will also abolish certain statutory registers and the submission of abridged accounts. It increases the powers available to Companies House to check information, enforce actions and impose penalties.
Related course: Preparing for the Companies House Reforms
VAT
A new penalty regime will replace the old default surcharge regime, which applies to the late submission of returns or late payment of VAT. HMRC will now use a points-based system where points are given for late filing and a fine of £200 is issued when a penalty threshold is reached. Late payments will be penalised after 15 days with a daily rate being imposed after 30 days.
Alongside this HMRC have made changes to the Error Correction online form VAT652 and Notification of Changes form VAT484.
Related course: The VAT Update
Corporation Tax
Following a number of widely publicised u-turns, the Government has confirmed that the Corporation Tax rate will rise from 19% to 25% from 1st April 2023, depending upon the level of profits, as originally planned. Companies will need to give consideration to the possibility of increased Corporation Tax liabilities and its impact on cashflow in the coming year. Recent changes to Corporation Tax loss relief and the announcement of extensions to capital allowances will make careful tax planning a priority for many businesses.
Related course: The Essentials of Corporation Tax
Payroll and HR/Employment Law
As the year turns, new rules come into force making exclusivity clauses unenforceable in the contracts of low paid workers. This will affect those earning less than the Lower Earnings Limit, currently £123 per week.
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.
The introduction of paid leave for carers and neonatal leave for parents is likely to be passed but will not come into force until 2024/25. The right to request flexible working is to become a day one right, possibly from April, but it is still not an automatic right.
For payroll administrators, it is also important to remember that there will be an extra bank holiday for the coronation of King Charles III on Monday 8th May.
Related courses: The Employment Law & HR Update, The Payroll Update
International Trade
As the Russia-Ukraine war looks like it is not going to end anytime soon, importers and exporters will continue to experience disruption in logistics and very high fuel costs. The scope of sanctions preventing trade with Russia and Belarus may also be extended. This may well affect traders who do not trade directly with either of those countries.
Businesses still using the CHIEF system for processing customs declarations should now be using the new CDS as CHIEF will no longer be available from the end of November 2023. This is an extension from the original date of March 2023.
New Free Trade Agreements should be concluded with New Zealand and India in the coming year. Furthermore, the Government has indicated a new approach to improving relations with the EU and solving the problems for traders caused by the Northern Ireland Protocol.
Related courses: CDS – The New Customs Declaration Service, Import & Export Customs Procedures, UK VAT and International Trade
Data Protection
The Government plans to replace the UK General Data Protection Regulation (GDPR) with a new system that will have a similar level of protections for ordinary citizens but will be less of an administrative burden for organisations. The new Bill should complete its passage through Parliament in the first half of 2023.
Related course: The GDPR Update
Conclusion
The economy is still struggling from the treble shocks of Brexit, Covid and the consequences of Russia’s invasion of Ukraine. Businesses will be hoping that 2023 sees a period of relative stability and an improvement in the economic conditions in which we are currently forced to operate.
Whatever your business, everyone at UK Training wishes you the best of luck and we hope that 2023 is a successful year for you all.
Written by Paul Murphy
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