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Red Tape Regulation - October 2012


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Red Tape Regulation - October 2012

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Red Tape Regulation - October 2012

  1. 1. ACTIVE PRACTICE UPDATES OCTOBER 2012Red Tape RegulationNew business regulations typically come into effect on twocommon commencement dates (CCDs) in April and Octobereach year. Below is our summary of some recent and upcominglegislation changes from 1 October 2012 that may affect your Business UPDATEbusiness and your customers. • As part of the Red Tape Challenge, theGovernment is continuing to review some An enhanced CRB, or Changes in key • An enhanced CRB and a barred6,500 extensive regulations with a view checklist for ‘regulated activity’ - this legislation fromto abolishing or substantially simplifying atleast 3,000 by December 2013. It hopes will only apply to employees who 1 October 2012: work in close and unsupervisedthe UK will adopt what it calls a more‘common sense’ approach to business contact with vulnerable groups. Pension auto-enrolmentregulations but as a business, you should Other changes include: Auto-enrolment of all eligible employees isalways remain aware of new or changing being phased in for the largest employersregulations which may affect you, your • ‘Controlled activity’, covering those from 1 October 2012. The new rulesemployees and your customers. who have less contact with vulnerable will apply to all existing businesses by 1 groups, will no longer exist. April 2017. Employers with 120,000Changes in legislation Employers will not be able to check or more people in their PAYE scheme will whether these people are barred,from 10 September although they may still be eligible for be the irst to automatically enrol workers into a qualifying pension scheme. This2012: a CRB check depending on their role will be followed by businesses with more • Registration with the Independent than 50,000 members from 1 NovemberVetting and Barring Scheme Safeguarding Authority (ISA) and 2012, continuing gradually, until those continuous monitoring, which has without an existing PAYE scheme will beIn operation since 2009, the Vetting and expected to comply from 1 April 2017.Barring Scheme is designed to protect been proposed by the original Vettingunsuitable individuals from working with and Barring Scheme, will not be Earning thresholds will also apply tochildren and vulnerable adults, however, introduced those eligible for auto-enrolment, withsince 10 September greater onus has • Police forces will no longer be those earning between the lower £5,564been placed on the employer. required to provide ‘additional and upper £42,475 thresholds eligible to join, and those earning £8,105 andTwo levels of enhanced criminal records information’ about applicants to above automatically enrolled. In addition,bureau (CRB) will now be required, in employers employers will have to top up pensionthe hope of scaling down paperwork for • Under 16s will not be eligible to be contributions on a workers behalf betweensome employers: CRB checked. the lower and upper thresholds, with18 Hyde Gardens BN21 4PT01323 431 200
  2. 2. Red Tape Regulationthe amount depending on different factors.Employees earning less than £5,564 will Companies transferring from What the future maybe entitled to join the scheme, although their international accounting hold…contributions are not required to be topped standards to UK GAAPup. All employees will have the option to opt An end to health and safetyout of a pension scheme if they wish. Companies that currently prepare their accounts according to international inspections for some businesses? standards (IFRS) are now able to changeBusiness audits and annual April 2013 may see thousands of ‘low their accounting framework to the Generallyaccounts risk’ businesses, such as shops, ofices and Accepted Accounting Practice in the UK (UK pubs, exempt from inspections, saving time GAAP) - the oficial body of UK accountingExemption from mandatory audits will be and money for businesses and the Health standards - providing they have not movedextended to include small businesses, with and Safety Executive (HSE). Furthermore, to the UK system in the previous ive years.the thresholds changing in alignment with businesses may only be held liable for civil Parent companies that are not required toaccounting thresholds. Smaller irms will not damages in health and safety cases if they prepare accounts under EU law using IFRSneed to subject their accounts to an audit can be shown to have acted negligently. will also be able to take advantage of this.providing they meet two out of the threefollowing qualifying criteria: Extended ‘settlement Money laundering• Fewer than 50 employees agreements’?• A balance sheet total of no more than The Money Laundering Regulation 2007 requires businesses covered by the A mutual agreement between both employer £3.26 million regulations, including accountants, money and employee will make it easier for irms• A turnover of less than £6.5 million. service businesses and trust or company to dismiss underperforming staff in return for service providers, to take appropriate a pay-out. This already available for someIn addition, most subsidiary companies precautionary measures to identify and verify employers, but the criteria may be loosened.will also be exempt from mandatory audits the identity of their customers, thus reducingproviding the parent company can guaranteetheir liabilities. The new regulations are the probability of money laundering. A cap on unfair dismissals? However, amendments aimed at reducingexpected to apply to accounting years A cap on unfair dismissal pay-outs may be red tape burden and maintaining a hostileending on or after 1 October 2012 and introduced, signiicantly reducing the level of laundering environment will allow greatermay affect around 119,000 businesses. pay-outs. lexibility to businesses whose complianceElsewhere, dormant subsidiary companies will be risked based. Firms will be able towill also no longer be required to submit rely on the customer due diligence of others Employment tribunals...annual accounts providing a similar in order to avoid duplicate checks and Changes to streamline the system are hopedguarantee. paperwork. to save money for taxpayers and businesses, handing more power to judges to dismiss ‘weak’ cases and reducing the number ofThese are just a few of the changes regarding employee regulations. Please talk required preliminary us to discuss further changes that may affect your business and employees.