In our latest article concerning legislative changes in the United Kingdom, we delve into the recent hike in minimum wage rates, explore the ongoing Loan Charge Review and highlight the resilience of UK exports amid challenging global trade conditions. Stay informed with our coverage of these significant topics.

Minimum wage increase effective from 1 April

Starting 1 April, the National Living Wage (NLW) and National Minimum Wage (NMW) have been raised. The NLW has gone up by 6.7%, while the NMW has seen increases of up to 18%, depending on the worker category. The NMW is the legal minimum hourly pay, with different rates for various worker categories. The apprenticeship rate applies to apprentices under 19 or those 19 and over in their first year. The NLW is for those aged 21 and over.

Peter Bickley, Technical Manager for Employer Taxes at ICAEW, noted that although the rise in minimum wage is advantageous for many employees, it creates further difficulties for employers who are already facing substantial changes from April 2025, such as increased National Insurance contributions. Nonetheless, the expanded employment allowance is expected to help small businesses. Employers must adhere to these regulations, as not paying the minimum wage is a criminal offense.

Loan charge review seeks evidence

The independent review into the loan charge, led by Ray McCann, former President of the Chartered Institute of Taxation, has issued a call for evidence. The review, announced by the Treasury in January, is seeking documentary evidence such as marketing materials and promotional leaflets. Affected individuals are encouraged to submit evidence by noon on 30 May.

McCann emphasized the importance of obtaining documentary evidence, such as marketing materials, letters, and emails from scheme promoters. This evidence will enhance the existing information and assist the review team in comprehending the involvement in these schemes and the promoters’ accountability. The review team has outlined questions to guide the type of information required and intends to interview some of the individuals involved.

UK exports show resilience in January

According to the latest data from the Office for National Statistics (ONS), total UK exports of goods and services increased by 2.8% in January. Goods exports rose by 3.5%, while services exports grew by 2.3%. Non-EU goods exports saw a 5.7% increase, and EU goods exports rose by 1.3%. Total import volumes into the UK decreased by 0.9%, with goods imports down by 1.7% and services imports up by 0.6%.

William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), highlighted that UK companies are showing resilience despite the challenging trading environment. With US tariffs now in effect and the potential for additional tariffs, along with retaliatory measures from trading partners, 2025 could be difficult for UK exporters. The forthcoming Industrial and Trade Strategies need to provide practical solutions to enhance export performance in key sectors. Furthermore, the government should advocate for a new agreement with the EU to eliminate barriers for UK businesses and facilitate their growth.

Michelle Martin

Managing Director | Accace Adept

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