Snippets

Businesses that operate Pay As You Earn (PAYE) should be aware that new rules apply to PAYE payments due for tax years 2010/11 onwards.  The rules introduce new penalties for late payment and affect amounts that employers and contractors have to make to HMRC made up of:

• Income tax and Class 1 NICs
• Class 1A NICs on benefits
• Class 1B NICs
• CIS deductions
• Student loan deductions

The new penalty regime applies to in-year PAYE payments due from May 2010 onwards.  The new rules apply to Class 1A NICs payments from July 2011.  Full details are available on the HMRC website at http://www.hmrc.gov.uk/employers/paye-penalties-faqs.htm

From 6 April 2010 employees in businesses that employ 250 or more people will have the right to request time off work to train. They must have worked for the employer for at least 26 weeks and the training must be aimed at improving the employee's productivity and skills at work.  Employers will be able to refuse requests for training that does not help to improve the performance of their business.

From April 2011 employees in businesses of all sizes will have the right to request time off for training.

Employers are encouraged to cover salary and training costs wherever possible.

Recent Units of Measurement Regulations implementing EC Directive 2009/3 have removed the 31 December 2009 time limit on using imperial units of measurement as supplementary indications - in other words labelling goods with imperial as well as metric measurements.  This means that businesses can continue to use imperial supplementary indications indefinitely.  The Directive also removes the requirement for the UK to set a date for the end of the use of the mile, yard, foot and inch (for transport purposes), the pint (for beer, cider and milk bottles) and the troy ounce (for trade in precious metals).

Under the Waste Batteries and Accumulators Act, from 1 February 2010 businesses that sell over 32 kg of batteries in a year must take back used batteries from the public as part of DEFRA's initiative to improve recycling rates.  The take-back service must be free and the requirement applies to portable batteries sold in a shop (like a newsagent), via the internet or mail order, or directly to businesses.  DEFRA has produced a calculator tool to help businesses work out whether they sell enough batteries each year to be brought within the scope of the legislation.  The tool and guidance material (including a Distributor Information Leaflet) can be accessed on the DEFRA website at http://www.defra.gov.uk/environment/waste/producer/batteries/calculator.htm

From 1 September 2009 the Health and Safety Executive (HSE) has made approximately 250 of its priced publications free of charge to view online, download and print.  They are available in PDF format.  If a hard copy version of the publication is required, these are also available, but these will continue to be released on a priced basis.  More information is available on the HSE website at www.hse.gov.uk

The Home Office recently announced a new £5 million fund to help small retailers buy security equipment in 50 priority areas.  Small grants of up to £3,000 can be applied for by individual retailers, to put towards devices like security shutters or alarms.  There are also grants of up to £50,000 available to groups of retailers - for example in a suburban shopping parade or complex.  These can be put towards addressing problems that affect the whole community - for example improvements might be made to street lighting.  More information about the funding and how to apply is available on the GrantsAdmin website at www.grantsadmin.co.uk/smallretailerscapitalfund

Employers in the catering and hospitality sectors should be aware of developments in the controversial issue of whether tips and gratuities paid to staff can count towards the national minimum wage.

At present cover charges, service charges, tips and gratuities can be used in payment of the national minimum wage when the payment is paid by the employer through the employer's payroll.

In May the Court of Appeal ruled in HM Revenue & Customs' favour that tips, gratuities and service charges that are distributed to staff via an independent 'tronc' are not 'paid by the employer' and so cannot be included in national minimum wage pay.

Following a period of consultation, the government announced at the same time that using tips to make employees' pay up to minimum wage levels will be banned completely from October 2009.  The National Minimum Wage Regulations 1999 (Amendment) Regulations 2009 amend existing legislation to provide that service charges, tips, gratuities and cover charges paid to a worker through an employer's payroll do not count towards the national minimum wage.

Proposals to introduce a best practice guide for the industry on how to manage tips and how to make tipping practices more transparent for the consumer are still being considered.

Although these changes are welcomed by many in the catering and hospitality sectors, they will also increase costs for those establishments that until now have been using tips to make up staff pay to the national minimum wage.  In today's tough trading environment this may prove to be the final straw for many struggling businesses.

Businesses in industries such as farming, manufacturing, construction and waste management should be aware of the Environmental Damage (Prevention and Remediation) Regulations 2009, which came into force in March (England) and May 2009 (Wales).  Similar regulations will be introduced in Scotland and Northern Ireland.

The new rules require organisations whose activities result in environmental damage to prevent and remedy the damage that they have caused, under the 'polluter pays' principle.  'Environmental damage' includes:

• serious damage to surface or ground water
• contamination of land where there is a significant risk to human health

Failure to comply with the regulations can lead to prosecution, fines and imprisonment.

A quick guide to the Environmental Damage Regulations can be downloaded from the DEFRA website at http://www.defra.gov.uk/environment/liability/pdf/quick-guide-regs09.pdf

Figures released by the UK Border Agency in March 2009 reveal that a very significant number of businesses that have been fined for employing illegal workers operate in the hospitality sector. Fines were generally in the region of £5,000 per employee, an amount that can be the final straw for a business, particularly in today's tough trading environment. Businesses in the restaurant, takeaway and hotel sectors should be aware that the Agency may carry out regular checks of their workforce. It makes sense to ensure that they rigorously check a prospective employee's entitlement to work in the UK so they don't fall foul of the law.

From July 2009 all estate agents operating in the UK must register with the OFT for Money Laundering Regulations purposes. The OFT will be the supervisory authority for the profession. Registration begins at the end of July and all estate agents must register within six months. More information is available on the OFT website at www.oft.gov.uk/advice_and_resources/resource_base/legal/money-laundering

Employers have a legal obligation to display the approved Health and Safety Law poster, or to give each employee a copy of the HSE leaflet outlining British health and safety legislation.

HSE published a new version of the poster on 6 April 2009. It has been redesigned to be more readable and to reflect recent changes in the law. Instead of the employer having to provide additional written information on the poster (and keep it up to date), workers are advised to call the HSE Infoline.

Details of the new poster and the cost are available on the HSE website at www.hse.gov.uk/contact/faqs/lawposter.htm

As part of their Real Help for Businesses Now campaign, the government has published a list of ten tips that not only benefit the environment but can also help small businesses save money. The suggestions are all easy to implement and can lead to quite considerable cost savings. Full details of the tips are available at: http://www.defra.gov.uk/news/2009/090211a.htm

The Businesslink website contains information about the Real Help for Businesses Now guide which aims to bring together the different government support packages available to businesses during the recession. The guide can be downloaded from: http://www.businesslink.gov.uk/realhelp

For many employees the current economic crisis has considerably increased stress and anxiety levels.  Not only are they worried about their own personal financial situation but they also fear that they may soon be made redundant.  They may also have to cope with an increased workload at work if a round of redundancies has already been made.

It can be difficult for line managers to know how best to minimise stress levels for their team members so that stress-related absenteeism is reduced and employee performance, productivity and commitment is improved.  The Chartered Institute of Personnel and Development (CIPD) has worked with the Health & Safety Executive (HSE) to produce support and guidance for managers dealing with stress at work.  A new HSE stress at work website provides a range of material to help managers, including a new Line Manager Competency Tool.  More details are available at: http://www.hse.gov.uk/stress/index.htm

Retailers should be aware that from 1 April 2009 new legal sanctions can be imposed on retailers who repeatedly sell tobacco products or cigarette papers to under-18s.  It is important to note that business proprietors are responsible for the actions of their employees, so it is essential to make sure that all members of staff are aware of the law surrounding tobacco products sales.  Measures should be put in place that require all staff to check the customer's photo proof of age if in any doubt.

The new sanctions available to magistrates include:

• restricted premises orders – the outlet where the offences have occurred is prevented from selling tobacco products for a period of up to 12 months
• restricted sale orders – a named person within the business is prohibited from selling tobacco products for a period of up to 12 months

LACORS has produced an explanatory document Tobacco Banning Orders – Guidance for Retailers which can be downloaded from the Association of Convenience Stores (ACS) website at: http://www.acs.org.uk/en/ info/document_summary.cfm/docid/BDCAD1FA-E4C6-43E4-B2E28F2C3AFA976B

From 1 February 2009 the penalties for filing company accounts late increase significantly - so company directors should take care that they file accounts on time. For example, the previous £100 penalty for being three months late goes up to £375. Full details are available on the Companies House website at www.companieshouse.gov.uk

Employers should be aware that from April 2009 the right to request flexible working will be extended to employees with children aged up to 16. Following a period of deliberation, this measure was confirmed recently by the government despite concerns that implementing it during the current economic situation would create difficulties for businesses.

Following several pilot schemes and a period of consultation, the Food Standards Agency (FSA) confirmed recently that a six tier 'scores on the doors' scheme would be rolled out in England, Wales and Northern Ireland. A two tier scheme operates in Scotland. The aim of the hygiene rating scheme is to allow consumers to make informed decisions about the places in which they eat. The scheme will cover all businesses that supply food direct to consumers, including restaurants, pubs, takeaways and supermarkets. Full details are available on the FSA website at www.food.gov.uk/news/newsarchive/2008/dec/scores