Mace & Jones managing partner Richard Corran examines some of the main legal changes coming into force on Red Tape Day.

Published: 8th April 2008

Greater Manchester employers need to brace themselves for a raft of legal changes coming into force on 6 April 2008.

The date is the first of two 'common commencement' days this year, when the Government introduces new legislation. A brisk look at the main detail sees important changes across a range of legal areas including tax. PAYE (Pay As You Earn) thresholds and rates and National Insurance rates and limits will be adjusted. The big change this April is that only two PAYE rates will apply - a basic rate of 20% and a higher rate of 40% for earnings over £34,600.

The main corporation tax rate will be cut from 30 to 28 per cent and the small company rate will increase from 20 to 21%. Changes will also apply to other allowances and credits, including: a rise in research and development credits and a new annual investment allowance applying to all business sizes, replacing small and medium enterprises first-year allowance schemes.

Another key tax change sees owners of empty commercial and industrial buildings face significantly higher taxes as their business rates relief is slashed. From April full business rates will apply to properties that have been empty for three months or more - or six months in the case of industrial property.

The latest chunk of the gigantic Companies Act 2006 will also fall into place. From April 6 you will not have to appoint a company secretary unless you choose to continue to have one and you will not have to have the signature of two directors to execute deeds - the signature of one director before a witness will be sufficient. Importantly there are new auditing rules to comply with including new requirements relating to the resignation of auditors.

Firms will further have to make certain changes in their accounting and auditing practices, particularly with regard to listing directors' pay. In terms of employment law 'information and consultation' (I&C) rules will for the first time apply to organisations with 50 or more employees and be warned there are stiff financial penalties for failing to comply.

The changes will mean that although there is no automatic requirement to have an I&C agreement, if 15 or more employees request one, you will have to agree to their request. P46 requirements will change for all new employees other than pensioners - e.g. with regard to providing full employee information. Changes to health and safety law will see a new corporate offence of corporate manslaughter.

This will apply to work-related death caused by a gross breach of a company's legal duty to protect the people the company employs, and those who use its premises and products or services. These rules do not introduce new requirements but serve as a reminder to review your health and safety programme.

New rules will further be introduced to protect agency workers. These rules will particularly affect agencies and their clients in the entertainment and modelling sectors. In other sectors, where accommodation and transport form part of the work agreement, you will be committing an offence if you make offers of work conditional on a worker using and paying for such services. These rules give workers the right to opt out of services they do not require.