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Throughout April 2018 there is going to be key employment law changes that all business owners need to be fully aware of to ensure there is minimal disruption to business cash flow. If you are unsure of some the changes being made, we have outlined important dates for you to put in your diary.
As of 1st April 2018, minimum pay rates will take effect, rising 4.4 per cent. The National Living Wage will rise from £7.50 up to £7.83 per hour. National Minimum Wages will also rise on this date with apprenticeship rates increasing from £3.50 to £3.70 per hour. Workers may say that this increase is not enough compared to other years but setting the wages higher could impact job opportunities. If you fail to correctly apply these changes, it can lead to serious consequences.
All businesses who have more than 250 employees have until 4th April 2018 to report their gender pay gaps. If you fall into this business bracket but fail to report by this date, you could face legal action. Business owners are legally obliged to report the proportion of men and women within their business, their gender pay gap and their bonus pay gap.
From 6th April 2018, business owners will need to raise the minimum auto-enrolment contributions they pay towards employee pensions. This is a legal requirement for all businesses and failure to do so could lead to fines. Employers will now need to contribute 2 per cent (rising from 1 per cent) and employees will have to contribute a minimum of 3 per cent.
April is also the start of the new financial year, which is a crucial time for business owners to carefully plan for the future. Consider organising your finances to take into account the above upcoming changes so that there is minimal disruption to business cash flow. If you take card payments from your customers, a business cash advance is a quick and simple way to boost business cash flow in just a few days.
Visit our website or get in contact with one of our advisors on 0800 3777 402 for more information on how to boost your business cash flow.