Key HR dates you need to know about in April
April holds significant importance in the working calendar, particularly in HR and related areas, as it marks the beginning of the new financial year on the 6th. This transition heralds a flurry of activities including planning, budgeting, and initiation of new revenue cycles, all of which entail substantial workload across various business functions, from financial reporting to external audits.
At The Electric Car Scheme, our mission is to streamline complex processes and offer support to HR professionals. In line with this, we are providing a guide that underscores pivotal dates crucial to both your role and employee wellbeing.
You might be curious about our interest in HR key dates. To provide context, The Electric Car Scheme is an employee benefit program that facilitates electric car salary sacrifice, enabling employees to save significantly—anywhere from 30-60%—on electric car purchases by paying for them through their gross salary. This not only translates to savings on National Insurance and Income Tax for employees but also fosters a sense of reward within your team, all without incurring any net cost to your business. It’s a win-win situation!
Now, let's delve into the changes occurring in April and the key dates you should keep in mind.
Changing tax rates
The beginning of the new tax year on April 6th, 2024, brings with it notable changes in tax regulations across different regions of the UK. In England, Wales, and Northern Ireland, income tax thresholds remain frozen until 2028, meaning there are no immediate adjustments required beyond the routine end-of-payroll tasks.
However, in Scotland, there are significant alterations to tax rates. As of April 6th, the top rate of tax escalates from 47% to 48%. Additionally, a new tax rate of 45% is introduced for individuals with incomes ranging from £75,001 to £125,140. Furthermore, employees’ national insurance contributions see a reduction of 2 percentage points to 8% as of April 6th.
These changes underscore the importance of staying updated with regional tax regulations to ensure compliance and accurate payroll processing.
| Band | Tax Rate | Taxable income from April 2023 until April 2028 |
|---|---|---|
| Personal Allowance | 0% | Up to £12,570 |
| Basic Rate | 20% | £12,571 - £50,270 |
| Higher Rate | 40% | £50,270 - £125,140 |
| Additional Rate | 45% | Over £125,141 |
Upcoming dates to keep in mind
Your employer payment summary is required by 19th April 2024 if you want to claim any payments or reclaim deductions, like employment allowance.
P60 forms need to be given to employees by 31st of May 2024 and P11Ds need to be done so by 6th July 2024.
National Minimum Wage
Significant changes are on the horizon for the National Living Wage (NLW) and National Minimum Wage (NMW), set to take effect from April 1st, 2024. These adjustments aim to enhance the financial well-being of workers across various age groups:
National Living Wage (NLW) for Individuals Aged 21 and Over: There will be a notable increase of £1.02 per hour, equivalent to a 9.8% rise, soaring from £10.42 to £11.44.
Age Group 18-20: Individuals falling within this age bracket will experience a substantial £1.11 surge per hour, marking a significant 14.8% increase, elevating their hourly rate from £7.49 to £8.60.
Age Group 16-17 and Apprentices: Those aged 16-17 and apprentices will witness a remarkable £1.12 hike per hour, reflecting an impressive 21.2% increase, propelling their hourly wage from £5.28 to £6.40.
These adjustments demonstrate a concerted effort to improve the financial stability of workers across different age categories, ensuring fair and equitable compensation in line with the evolving economic landscape.
| Rate from April 2023 | Annual Increase (£) | Annual Increase (%) | |
|---|---|---|---|
| National Living Wage | £10.42 | £0.92 | 9.7% |
| 21-22 Year Old Rate | £10.18 | £1 | 10.9% |
| 18-20 Year Old Rate | £7.49 | £0.66 | 9.7% |
| 16-17 Year Old Rate | £5.28 | £0.47 | 9.7% |
| Apprentice Rate | £5.28 | £0.47 | 9.7% |
| Accommodation Offset | £9.10 | £0.4 | 4.6% |
The Electric Car Scheme is an employee benefit offered by your employer and because salary sacrifice payments affect someone’s gross salary it means you cannot fall below minimum wage. Our quote tool asks for employees’ gross annual income which will check the employee does not fall below the National Minimum wage at any given time. This is important to keep in mind if your company is interested in implementing The Electric Car Scheme as an employee benefit.
Holiday Pay Reforms
This was covered in our blog outlining the changes coming on April 1st - you can read more about the Holiday Pay Reforms here.
In summary, the government has unveiled several changes to the regulations governing holiday pay. These revisions encompass:
Reintroduction of 12.07% Calculation: For individuals with irregular working hours and part-year workers, the calculation method involving 12.07% of hours worked is reinstated.
Reintroduction of Rolled-Up Holiday Pay: Similarly, rolled-up holiday pay is reintroduced for those with irregular working hours and part-year workers.
Changes to the Definition of a Week’s Pay: There are modifications to the definition of a week’s pay for holiday pay calculations, aiming to ensure fairness and accuracy.
Entitlement to Carry Over Holiday Pay: Employees now have the entitlement to carry over up to 4 days of holiday pay if their employer fails to provide them with a reasonable opportunity to take a holiday or does not actively encourage them to do so.
These changes reflect the government's efforts to address issues surrounding holiday pay, providing clarity and protections for workers with varying employment arrangements.
Additional free hours of childcare for parents
Starting from April 2024, significant changes in childcare support for parents and carers of young children in England have been introduced:
Expansion of Free Childcare for Three to Four-Year-Olds: Working parents and carers of children aged three to four are now entitled to 30 hours of free childcare per week. To qualify, the childcare provider must be approved, and this support ceases once the child begins reception class. Eligibility is determined by factors such as employment status, income, child’s age, and other circumstances including immigration status.
Universal 15 Hours of Free Childcare: All parents of three to four-year-olds, regardless of their working hours or income, can now access 15 hours of free childcare weekly. Previously, before April 2024, this benefit was only available to parents of two-year-olds meeting specific criteria, such as receiving income support benefits and earning less than £15,400 a year.
Introduction of Free Hours for Two-Year-Olds: Additionally, working parents can now access 15 hours of free childcare per week for their two-year-olds.
The government's efforts to support parents and carers are evident through these initiatives. Individuals need to stay informed about any further changes that may occur in September 2024 and 2025 regarding childcare support as this is expected to change.
Flexible working changes
Effective April 6th, 2024, new flexible working legislation takes effect, ushering in significant changes:
Removal of Continuous Service Requirement: The legislation eliminates the prerequisite for employees to have 26 weeks of continuous service before they can submit a flexible working request. Consequently, employees now possess the right to request flexible working arrangements from their very first day of employment.
Increased Frequency of Requests: Employees are now empowered to make up to two flexible working requests within a 12-month period, a departure from the previous allowance of a single request.
Reduced Response Time for Employers: Under the Employment Relations Flexible Working Act 2023, the time limit for employers to respond to flexible working requests is reduced from three months to two months. However, this period can be extended with the consent of the employee.
Consultation Requirement for Employers: Employers are obligated to engage in consultation with employees before rejecting a flexible working request. Moreover, employees are no longer obligated to provide explanations or justifications regarding the anticipated impact of the proposed changes to their working arrangements.
These legislative amendments aim to enhance workplace flexibility and empower employees to better manage their work-life balance, while also streamlining the process for both employers and employees involved in flexible working arrangements.
Paternity Leave changes
Effective from April 6th, 2024, new regulations allow fathers or partners to split their statutory paternity leave into two blocks, offering increased flexibility:
Paternity leave can now be divided into two separate one-week blocks within the first 52 weeks (up to 52 days) following the birth or adoption of a child.
Notice of entitlement to take paternity leave must be provided during or before the 15th week before the expected week of birth, followed by at least 28 days' notice of each leave period.
For parents of babies born before April 6th, 2024:
Partners were previously limited to taking a continuous block of one or two weeks of paternity leave within the first eight weeks after birth, unless otherwise stated in an enhanced paternity leave policy.
Redundancy Protections Regarding Pregnancy or Family Leave:
Employers undertaking redundancies should take heed of the Protection from Redundancy Pregnancy and Family Leave Act 2023, which offers enhanced protections for employees during pregnancy and upon their return from family-related leave.
The Maternity Leave, Adoption Leave, and Shared Parental Leave Regulations 2024, effective from April 6th, 2024, extend redundancy protections and apply:
From the moment an employee notifies their employer of their pregnancy until 18 months after the expected week of childbirth, the child’s birth date, or date of adoption, for employees returning from maternity leave, shared parental leave, or adoption leave.
During this protection period, employees possess the right to be offered suitable alternative employment in the event of a redundancy situation.
These legislative changes aim to provide greater flexibility for parents and bolster protections for employees during pregnancy and family-related leave, ensuring fair treatment and support in the workplace.
Statutory sick and family-related pay increases
Here's a summary of the recent changes in statutory pay rates:
Statutory Pay Rate Increase:
Effective from April 6th, 2024, the Government has raised the rates of statutory pay, bringing significant adjustments:
Statutory pay has increased from £109.40 to £116.75 per week for employees working five qualifying days per week.
Changes in Specific Statutory Pay Rates:
The rate of statutory maternity pay and adoption pay, as well as statutory paternity pay and statutory shared parental bereavement pay, after the initial six weeks, has been elevated to £184.03 per week or 90% of the employee’s average weekly earnings, whichever is lower.
However, the rate for the first six weeks of statutory maternity or adoption pay remains fixed at 90% of the employee’s average weekly earnings.
These revisions in statutory pay rates aim to provide better financial support for employees during periods of maternity, adoption, paternity, and shared parental bereavement leave, ensuring fair compensation in line with evolving economic conditions.
HR responsibilities surrounding the new Tax Year
Here’s an outline of what you need to do in the new Tax Year if you work in HR:
Pay Gap Reporting - due 4th April 2024
P11D Reporting - due 6th July 2024
P60s released to employees - due 31st May 2024
You may also be required to submit ESG or impact reporting, much like our team at The Electric Car Scheme. You can visit our blog which goes into more detail about each of these topics if you want to learn more.
Impact reporting at The Electric Car Scheme
The Electric Car Scheme provides companies with an annual impact report to show how the adoption of electric cars has affected your carbon dioxide savings and the total committed mileage. We look at the following metrics to determine your impact:
Number of employees,
Percentage of employees who have looked at car quotes
Cars ordered,
Cars delivered,
Total committed mileage,
Kg Carbon Dioxide Equivalent (CO2e) savings,
Kg Scope 3 Carbon Dioxide Equivalent (CO2e) reduction.
However, we also produce our impact reporting which has pulled out some promising statistics for the adoption of electric cars and how many kg of Carbon Dioxide emissions have been saved because of our business! Impact reporting is designed to outline where your company is thriving and where there are gaps in performance and potential room for improvement.
In a survey conducted by our team at The Electric Car Scheme, we found that just under half (48%) of UK employees said they are more likely to feel motivated if they work at a company that offers green benefits and 44% said they’re more likely to stay at a company like this. You can read more about our findings by visiting our blog: The 10 Most Popular Employee Benefits of 2024
If you are interested in learning more about The Electric Car Scheme, you can read learn more about us by visiting our website or watching our explainer video below.
