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Here, we outline the key updates and developments impacting employers and employees in the UK. Whether you are an experienced employer or just starting out, this guide aims to equip you with the knowledge and tools needed to thrive amidst the evolving landscape of UK employment law and regulations.
National Insurance Contributions:
Statutory Payments:
Changes effective from 1st April 2024 are as follows:
| Category | Rate from April 2024 | Rate from March 2024 | Increase |
| National Living Wage | £11.44 | £10.42 | 9.8% |
| 21-22 year old rate | – | £10.18 | 12.38% |
| 18-20 year old rate | £8.60 | £7.49 | 14.82% |
| Under 18 rate |
£6.40 | £5.28 | 21.21% |
| Apprentice rate |
£6.40 | £5.28 | 21.21% |
From 1st April 2024, the National Living Wage applies to workers aged 21 and over.
Starting April 2026, it will be mandatory to report employment benefits and pay Class 1A NICs through payroll software. These changes will eliminate the need for employers to submit forms P11D to HMRC and pay Class 1A NICs separately.
From 6th April 2023, HMRC ceased accepting new informal arrangements. Employers must register to payroll expenses and benefits for 2024/25 if they had an informal arrangement previously.
Employers payrolling expenses and benefits in kind may have a Class 1A NIC liability and need to:
Effective 6th April 2024, the Employment Relations (Flexible Working) Act 2023 will grant employees the right to request flexible working arrangements from the first day of employment. Additional changes, pending confirmation, include:
For leave years starting on or after 1st April 2024, employees working irregular hours or part of the year will accrue leave at 12.07% of the hours worked in a pay period, up to a maximum of 5.6 weeks. The HMRC calculator can be used to estimate holiday entitlement based on average weekly hours.
The Carer’s Leave Act introduces flexible unpaid leave for employees to care for a dependent with a long-term care need. Eligible employees can take leave in half-days or full days, up to a maximum of one week within a rolling 12-month period, with the same employment protections as other family-related leave.
From 6th April 2024, statutory paternity leave becomes more flexible. Fathers can take two weeks of paternity leave at any time during the child’s first year, either separately or consecutively. Notice must be given 15 weeks before the birth, with confirmation 28 days before taking leave. These changes apply from 8th March for fathers of babies born on or after 6th April 2024.
New tax rates and bands for Scottish employees from 6th April 2024:
| Category | 2024/25 | 2023/24 |
| Starter rate | 19% | £12,571 – £14,876 |
| Basic rate | 20% | £14,877 – £26,561 |
| Intermediate rate | 21% | £26,562 – £43,662 |
| Higher rate | 42% | £43,663 – £75,000 |
| Advanced rate | 45% | £75,001 – £125,140 |
| Top rate |
48% | over £125,140 |
Effective from 1st October 2024, the Tipping Act requires employers to:
NIC relief on earnings below the veterans upper secondary threshold for employers hiring former UK Armed Forces members extends into 2024/25.
Prepare to provide employees with a P60 by 31st May 2024 for those employed on 5th April 2024. Ensure your final Full Payment Submission (FPS) or Employer Payment Summary (EPS) for the year ending 5th April 2024 indicates it is your last submission.
Accounting and reporting services | Accounting online portal | Payroll and HR outsourcing | Payroll and HR online portal | Tax compliance and advisory | Go-to-market and corporate services | Company secretarial services
About Accace Adept UK
We are a joint venture between Accace and Adept Advisory, established to pursue a long-term strategy of providing innovative Business Process Outsourcing (BPO) and advisory services to clients in the United Kingdom and South Africa. We joined forces to augment each other’s valuable insight, knowhow and practices, whilst combining our experience in complementary fields of expertise.
About Accace Circle
Accace Adept operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 50 jurisdictions with nearly 2,500 professionals, we support more than 15,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 200,000 pay slips globally.
