From April 2016, the national living wage will increase from £6.70 to £7.20 an hour. Workers aged 25 and over and not in the first year of an apprenticeship will be legally entitled to this amount. The minimum wage will still apply for workers aged 24 and under.
The rise will take effect from the 1st of April and will be enforced as strongly as the National Minimum wage is so you must make sure you are paying your employees the correct amount.
The increase will apply to:
- Most workers & agency workers
- Casual labourers
- Agricultural workers
- Apprentices who are aged 25 & over (not in their first year)
It is important to ensure you are paying your employees the correct living wage as failure to do so can carry a penalty of 200% of the amount owed unless the arrears are paid within 14 days. Employers who don’t comply with payment will be banned from being a company director for up to 15 years.
We have just completed a loan application through Funding Circle, raised £30,000 for a client. The application was made on Thursday, posted on the Funding Circle website on Monday, and fully funded by 8am Tuesday morning. We should have the money in the bank by the end of the week!
Perhaps something that has been under the radar is that from 6th April 2016 pretty much every company and LLP has a new legal requirement to comply with.
All companies must keep and publish on Companies House a register of the personal details of all ‘People with Significant Control’(PSC) within the business. This extends the current requirement to record the shareholders and directors to anyone who through their connections, other business interests and relationships are able to exert ‘significant control’ over the affairs of a business.
This includes shareholders with a holding of over 25% but also looking through however many layers of control that it is necessary to uncover the actual sources of control in a business. This could be through a personal relationship, through a shareholder agreement, through controlling interests in other companies, the list
This requirement is part of UK commitment to disclose the true controlling ownership within UK businesses.
No Company’s PSC register should be blank, it must exist and must state either the details of the indivduals, that there are no PSCs or that further information is being sort. There are detailed provisions as to the steps a company must make to identify these interests which could be very complicated to unravel.
The register must be maintained from 6th April 2016 and must be published on Companies House from 30th June 2016.
Non-compliance with this requirement is a criminal offence with sanctions of fines or even imprisonment.
Individuals who receive enquiries from a company are required to respond appropriately with the necessary information. Failure to do so is also an offence.
For further guidance or information on this change please contact Richard Ashmore on firstname.lastname@example.org