Whilst we will need to wait and see what changes will materialise in the payroll profession and when, we can look to the Labour manifesto for an indication of what may be to come. How the new Labour Government may affect the payroll profession can be understood through their set of proposals, as follows:
Tax:
- Commitment to not raise headline income tax and VAT rates
- Address “unfairness in the tax system” – abolish ‘non-dom’ status
National Insurance
- Commitment to not raise the headline rates of National Insurance
Minimum Wage
- Change the remit of the independent Low Pay Commission so it accounts for the cost of living
- Remove age bands, so all adults are entitled to the same minimum wage
Pensions
- Retain the triple lock for the state pension
- Adopt reforms to workplace pensions
Parental Leave and Pay
- Review the parental leave system
- Introduce basic rights from day one of employment
Statutory Payments
- Reform Statutory Sick Pay
- Introduce basic rights from day one of employment
HMRC
- Modernise HMRC and change laws to tackle tax avoidance
- Strengthen HMRC’s powers, invest in new technology and build capacity within HMRC
Other
- Create a Single Enforcement Body to ensure employment rights are upheld
- Ban zero hours contracts; end fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.
We’re here to help
As an HR outsourcing company, we understand the complexities of navigating significant legislative changes. With the Labour government’s proposed payroll and employment changes on the horizon, ensuring compliance is crucial. If you’re wondering how the new Labour Government may affect the payroll profession, we’re here to provide clarity and support.
At HR Solutions, our payroll services are designed to keep your business up-to-date and compliant. We offer tailored solutions for accurate payroll processing and integration with HR systems. Our expert team stays informed on legislative updates to provide you with timely advice.
Contact us on 0844 324 5840, or send us an online enquiry by clicking here. Let us help you manage your payroll efficiently and stay compliant.
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