As a small business, you might feel like you’re spinning plates to balance everything. Law amendments and new legislation are some of the plates that you can’t afford to drop in small business. The last thing you want is to receive a fine or to be investigated out of the blue.
One of the best ways to prepare? Know the crucial dates for all the changes so you know when to act and what you need to do.
There’s a lot changing this year, and it can be difficult to keep up, but being prepared is your greatest defence. Here are some of the most important dates for small business to keep in mind in 2022.
Legislation Changes You Might Have Missed… (As of 1st Apr 2022)
As a busy small business, you might have missed some of the key changes that have already happened. These are legislation changes or adjustments to existing law, so don’t get caught out. Is your business up to date with the points below?
- VAT in hospitality rose from 12.5% to 20%
- Introduction of the Plastic Packaging Tax
- Minimum wage rates have increased
- Making taxes digital for VAT is now a legal requirement
- National Insurance contributions have increased
The easiest way to find out if you’re complying with these recent changes is to visit the government website. Some of these points may not apply to you, for instance, the plastic packaging tax has specific thresholds you’d need to meet before you’d be liable to pay this new tax.
So, save yourself the stress and check if you’re affected and what you need to do.
Law Changes & Legislation Amendments To Watch Out For In 2022
With 2022 speeding ahead, the government are issuing some of the dates for larger changes to come. These are the changes to business regulations and employment law that you should know about.
Gender Pay Gap Reporting Deadlines
During the pandemic, businesses were given a deadline extension to 2021 for reporting on their gender pay gap differences.
In 2022, this deadline delay is set to revert back to normal, meaning that businesses with 250 employees or more must publish their report annually again.
Keep your eye on this if you’re one of the businesses who must report, as the government is due to reassess the gender pay gap reporting procedures. More changes could be on the horizon for gender pay gap reporting.
All small businesses struggled through the data protection changes of GDPR, but data protection is getting another update soon.
The ICO is due to update its policies in 2022, but mostly in relation to recruitment and employee records.
Stay up to date with this issue on the ICO website so you don’t risk paying a penalty of up to 4% of your total annual turnover. Safe to say, it’s better to take the time to stay updated on ICO changes than face a penalty.
Tax Increase On Dividend Income
As of 6th April 2022 people who receive any income through dividends will now have to pay 1.25% more tax.
But don’t panic, the first £2000 of dividends earned each tax year are still untaxable because of the existing dividend allowance. You can also rest assured that dividends on assets held in ISAs won’t be included in the dividend tax.
Instead, you’ll pay a new rate associated with the amount of tax you usually pay. This means the basic rate is rising from 7.5% to 8.75%, the higher rate from 32.5% to 33.75%, and additional tax rates from 38.1% to 39.35%.
What Should You Do Next?
What can you do to stay up to date with these legislation shifts? With the threat of large fines and consequences for not complying with law and legislation, it’s important to invest the time and effort into protecting your business and yourself.
The most efficient ways to stay up to date is to:
- Monitor Governing Websites
You can certainly gain valuable summaries from articles you find from reputable companies, but always double-check with the official UK government website or the relevant agency.
It’s possible to set reminders on your phone or computer to receive a notification when that website releases a new update. That can be a simple way for you to avoid big repercussions.
- Attend Industry Conferences
A lot of the legislation and bill amendments you see on the news might not be relevant to your type of business or your sector.
Attending industry conferences or events may let you network with other business owners and professionals in your area, giving you insight and a more personal venue to ask questions and find out what everyone else is doing.
- Assign A Compliancy Team
Ideally, you should be putting together a team or even assigning an individual to be responsible for compliance.
It would be the responsibility of this team or person to stay informed on what your business needs to do and when with regard to business legislation and law changes.
Legal Peace Of Mind For Your Business
Staying on top of amendments in law and the latest schemes from the government can be a pain. But the consequence of not complying is far worse than the inconvenience of keeping these dates in your diary.
Having a legal professional with expertise in compliance can be the difference between a profitable year or a business-ending fine. LegalDrop makes it simple to find legal experts with specialisations that suit you, just get in touch for help getting started.