Legislation has been introduced in Parliament to upgrade UK workers’ rights.

The legislation is wide ranging with the intention of tackling poor working conditions and benefitting businesses. A summary of the main changes are:

• The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering on the Labour manifesto commitment to ensure that all workers have a right to these protections from day one on the job.
• The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one, enabling businesses to take chances on hires while giving more people confidence to re-enter the job market or change careers, improving their living standards.
• The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.
• Accompanying this will be measures to help make the workplace more compatible with people’s lives, with flexible working made the default where practical. Large employers will also be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and new mothers. This is all with the intention of keeping people in work for longer, reducing recruitment costs for employers by increasing staff retention and helping the economy grow.

A new Fair Work Agency bringing together existing enforcement bodies will also be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.

Employers and employees who would like more information on the scope of the new legislation can view a Department for Business and Trade press release at https://www.gov.uk/government/news/government-unveils-most-significant-reforms-to-employment-rights.

The GOV.UK ID Check app is used to allow applicants to verify their identify when they sign in to a government service with GOV.UK One Login. Once this had been completed satisfactorily, your identity information is automatically saved to your GOV.UK One Login. This means you will not need to prove your identity next time a service needs to check who you are.

The app is available on both iPhone and Android platforms and will check that:

• your photo ID is real
• you are a real person
• you are the same person as in your photo ID

You also need one of the following types of photo ID:

• UK photocard driving licence
• UK passport
• non-UK passport with a biometric chip
• UK biometric residence permit (BRP)
• UK biometric residence card (also called a BRC)
• UK Frontier Worker permit (FWP)

If you are unable to prove your identity using the app there are also options to answer security questions online about things like your mobile phone contract, and any bank accounts, credit cards, loans or mortgages you may have. There is also a further option of using a Post Office that offers ‘in branch verification’.

There are special VAT reverse charge rules in place for certain building contractors and sub-contractors. These regulations, which came into effect on 1 March 2021, make the supply of most construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge only applies to supplies of specified construction services provided to other businesses within the construction sector.

If you are VAT registered in the UK and supply services to the building and construction industry, you must use the VAT reverse charge if the following conditions are met:

• Your customer is registered for VAT in the UK.
• Payment for the supply is reported under the Construction Industry Scheme (CIS).
• The services you provide are standard or reduced-rated for VAT.
• You are not an employment business supplying staff or workers, or both.
• Your customer has not provided written confirmation that they are an end user or intermediary supplier.

When these rules apply, sub-contractors do not add VAT to their supplies for most building customers. Instead, contractors are responsible for paying the deemed output VAT on behalf of their registered sub-subcontractor suppliers. And note, contractors can then reclaim the same amount of VAT as input tax on their VAT return, subject to the usual rules. In effect, contractors are paying their subcontractors' VAT to HMRC and then claiming it back on the same VAT return.

It is important for businesses to understand and comply with these rules in order to avoid potential penalties from HMRC.

Chancellor Rachel Reeves has recently introduced a series of new measures aimed at advancing the priorities of the new government. The key announcements include:

• New funding for breakfast clubs at 750 schools with primary-aged pupils.
• The publication of a new Industrial Strategy in the spring.
• A reversal of the decision to write off over £640 million in Covid PPE contracts.
• HMRC will consult on the implementation of e-invoicing for businesses and government departments.

Further details are as follows:

School Breakfast Club Pilot

The Chancellor announced a £7 million breakfast club pilot that will invite up to 750 schools with primary-aged pupils to participate. This funding will allow these schools to provide free breakfast clubs for their students during the summer term (April-July 2025). The initiative aims to reduce the number of hungry children starting the school day, ensuring they are ready to learn.

Covid Corruption Commissioner

The Chancellor declared that no Covid-era PPE contracts will be abandoned or waived until they have been reviewed by the new Covid Corruption Commissioner, who will be appointed in October. This decision affects £647 million in Covid PPE contracts that were previously set to be waived.

Industrial Strategy

The Chancellor emphasized that the Industrial Strategy will be central to the government’s mission to stimulate economic growth, unlock investment, and improve prosperity across the country. A green paper is expected to be published shortly outlining the long-term sectoral growth and priority industries of the government

HMRC Package

Chancellor Reeves also detailed a package of reforms aimed at enhancing the UK’s tax system to strengthen the foundations of the economy. As part of this initiative, HMRC will launch a consultation on e-invoicing to encourage its broader adoption among UK businesses and government departments. Additionally, a new Digital Transformation Roadmap is expected to be published in Spring 2025, outlining HMRC’s vision to become a digital first organisation.

While there have been no specific announcements regarding changes to Business Asset Disposal Relief (BADR), the Chancellor may consider modifying this relief in the upcoming Budget. If you are contemplating selling your business soon, we can assist you in evaluating your options.

BADR currently applies to the sale of a business, shares in a trading company, or an individual's interest in a trading partnership. When this relief is available, a Capital Gains Tax (CGT) rate of 10% applies instead of the standard rate, potentially resulting in significant CGT savings for those looking to exit their business.

To qualify for this relief, several conditions must be met. Currently, individuals can claim a total of £1 million in BADR over their lifetime. This £1 million lifetime limit allows for multiple claims for the relief. Additionally, the lifetime limit may be increased if assets were sold before 11 March 2020.