With every new tax year, there are always new laws, financial rules and changes that will affect individuals and businesses. New legislation is set to bring new changes and laws from this month, and we have broken down the most important changes and how they might affect you:
Employment changes:
The new minimum wage, weekly statutory pay rates and IR35 reforms come into force this month. The minimum wage will rise, the basic rate worker will get a 2.2% increase, while the National Living Wage will rise to £8.91 an hour. Plus, those aged 23 and over will now be eligible for the highest rate.
New limits on statutory redundancy pay came into effect last week, so make sure to update your company’s calculations. From April 6th, the maximum amount for statutory redundancy is £544.
From April 4th, there has also been an increase in statutory maternity, paternity, adoption, shared parental, and parental bereavement pay to £151.97.
Lastly, under the new rules, organisations employing contractors are responsible for determining their employment status and assessing whether IR35 applies to them. If IR35 does apply, the organisation that pays the contractor’s fees is deemed to be their employer for tax and national insurance purposes.
Conveyancing and home ownership changes:
This month 95% of mortgages will be back in the form of a new government-backed mortgage scheme, which will be accessible from 19 April 2021. The scheme aims to help the new generation in the process of buying a home by increasing the availability of 95% loan-to-value mortgage products. This will enable more households to access mortgages without the need for large deposits.
The temporary holiday for the Stamp Duty Land Tax (SDLT) for residential properties is also extended for a further three months. Read our blog to find out the deadline.
Driving law changes:
April also comes with changes for drivers across the UK, including car tax changes and stricter mobile phone rules. Road tax will increase from this month on, and the price will depend on how much CO2 your car produces.
Due to a loophole in the current driving laws, drivers were technically allowed to use their mobile phone to take videos, or photos while driving. The law will be updated, and new rules will come into force to ensure all use of mobile phones behind the wheel is prohibited.
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