NEWSLETTER | 02
NOVEMBER 2023
Autumn Statement The
Edition
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01992 929170
info@rocketpaye.co.uk
CONTENTS 03 A WORD FROM OUR DIRECTOR 04 THE AUTUMN STATEMENT 06 INDUSTRY INSIGHTS 07
NEW TO ROCKET PAYE THIS MONTH
08 GET IN TOUCH
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A WORD FROM OUR DIRECTOR Wow.. what a month we have had at Rocket HQ. Huge from a partnership perspective, huge from a legislation perspective and huge from a new business perspective. Although this year has been a tough year, in that inflation (which has now come down and will hopefully continue too) and interest rates have been the highest we have seen for over a decade, effectively making everything more expensive and it having a knock on effect across multiple sectors, it looks as though we are turning a corner. Whether this is down to an improved economy or Rocket Paye delivering on our promises and backing up our messages, there is certainly a shift.
“WE HAVE SUCCESSFULLY BEEN INCLUDED ON 4, YES 4 MAJOR HEALTHCARE PSL’S” We have successfully been included on 4, yes 4 major healthcare PSL’s, we are in talks with 2 major national, multi-sector recruitment agencies to officially be added to those PSL’s as well as confirmation we will take on major temp numbers from 2 end hirers in the construction arena.
We have partnered with new suppliers, furthering our commitment to contractor welfare and continuing to value add to our clients, rather than just being a payroll provider that produce payslips on a Friday. We are also excited to have begun the audit process to becoming Accredited to two of the sectors most well renowned and prestigious brands in our industry. With all things going well, we aim to have these tied up and announced by the middle of January, starting the New Year on a strong footing! All of the above are huge strides forward, to take Rocket to the top and make us a household name, renowned for doing things our own way but the right way! Alex Hough MANAGING DIRECTOR
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THE AUTUMN STATEMENT So, what we have all been waiting for this month, was the Autumn Statement, delivered by Jeremy Hunt, where we have all hoped for, guessed and tried to figure out what might be included and what might be ignored. Well, we have all the answers to all of those questions: MINIMUM WAGE You might say, that this was an Autumn Statement that was delivered knowing that an election was fast approaching. The record hike to National Living Wage would certainly suggest this could be the case. See below for what the National Living Wage will transform into from April 1st 2024. National Living Wage for 21 Year Olds and Over ➜ £11.44 ➜ Annual Increase of £1.02 ➜ 9.8% increase 18-20 Year Olds ➜ £8.60 ➜ Annual Increase of £1.11 ➜ 14.8% increase 16-17 Year Olds ➜ £6.40 ➜ Annual Increase £1.12 ➜ 21.2% increase
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Apprentice Rate ➜ £6.40 ➜ Annual Increase £1.12 ➜ 21.2% increase INCOME TAX FREEZE The government have confirmed that current income tax allowances have been frozen until 2028. Employees who are entitled to the full personal allowance will continue to have a personal allowance of £12,570 and a basic rate (20%) of £37,700, meaning no higher tax being charged on anything up to £50,270. Higher tax will continue to be taxed at 40% up until an annual salary of £125,140, which has come down from £150,000 prior. The additional rate tax will continue to be 45%. NATIONAL INSURANCE CUT Employee’s – the government announced that employee’s National Insurance would be reduced not 1% but 2% from 12% down to 10%. Allegedly, this tax cut will affect 27 million workers across the UK, with the Average worker on £35,400 saving £450 a year. This change comes into effect on January 6th 2024.
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Self-employed – Self employed workers generally have had to pay Class 2 and Class 4 NIC’s over the years. However, it has been announced that a self-employed workers Class 2 NIC’s have been completely ABOLISHED and Class 4 NIC’s have been reduced from 9% to 8%. Theses changes take effect from April 1st 2024 DISAPPOINTMENT One thing that was missing from this Autumn Statement, which was widely tipped to be not just mentioned, but some sort of pathway created was of course, regulation on the Umbrella Industry. We were expecting some results from the Umbrella Consultation that was carried out and came to an end in the summer and we were hoping this would show us the way forward to a new, compliant and level Umbrella Industry. I think its safe to say that not only we, but all our partners and clients were hoping for the same thing and until now, there has been no update on that front. However, you can get industry experts take on the next steps for regulation and what the new changes from the statement mean for you.
“ONE THING THAT WAS MISSING FROM THIS AUTUMN STATEMENT, WHICH WAS WIDELY TIPPED TO BE NOT JUST MENTIONED, BUT SOME SORT OF PATHWAY CREATED WAS OF COURSE, REGULATION ON THE UMBRELLA INDUSTRY”
CLICK HERE TO JOIN OUR WEBINAR
Discover how you can work with us and remain compliant and diligent in the process 6th December 2023
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INDUSTRY INSIGHTS CHANGES TO HOLIDAY PAY!!! Earlier this month, the Government announced that rolled up holiday will be compliant and allowed for irregular hour and part year workers only. This is a huge result for the temporary market, as the malpractice that has existed with other providers withholding holiday pay or flat our refusing to pay holiday now effectively inexcusable. The addition of another option on how holiday pay is paid, means that Umbrella companies have no excuse not to offer rolled up holiday pay as a legitimate option to a contractor. It promotes transparency and ensures all workers are paid what they are owed every time. Rolled up holiday pay will be calculated at 12.07% which has previously been the industry norm. All of these changes take effect from 1st April 2024! CLICK HERE for the full legislation document click here you geek!
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HIRING AGENCY STAFF TO COVER STRIKES The Government has initiated a consultation on eliminating what it characterises as outdated regulations that currently prohibit agency workers from filling in during strikes. According to the proposed changes, while employment agencies must still ensure that supplied workers are adequately qualified to maintain service standards, agency workers would be allowed to offer temporary coverage across all sectors. The current Regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 restricts employment businesses (commonly known as agencies) from providing agency workers to substitute for those participating in an official strike or other industrial action. The Department for Business and Trade (DBT) contends that repealing this regulation would not impact workers’ ability to strike or the existing protections afforded to striking workers.
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NEW TO ROCKET PAYE THIS MONTH Rocket Paye are proud to announce a prestigious partnership with The REC. The Recruitment & Employment Confederation are renowned for the great work and support they provide to recruitment agencies all over the UK. Being the regulator for the recruitment industry, they strive to uphold the standard and compliance of practice, required to secure supply chains and maintain the correct ethics.
“WE HAVE ALIGNED OURSELVES WITH THE REC FOR A NUMBER OF REASONS BUT MOST OF ALL BECAUSE WE EXTEND THOSE SAME ETHICS AND COMPLIANCE INTO WHAT WE DO” We have aligned ourselves with The REC for a number of reasons but most of all because we extend those same ethics and compliance into what we do, ensuring that your temporary workers are safe in the knowledge that they are being paid correctly each week. We have also gone through a lengthy audit and due diligence process to become and REC partner, which shows that if The REC trust us, you can too! We also had the pleasure of attending the prestigious REC Awards on the 23rd of
November, where over 600 recruiters came together, to celebrate the amazing hard work they do each and every day, across multiple sectors. As many as 19 awards were given out on the night, including the award that Rocket Paye sponsored and gave out, which was won by Morson Group. The night was also a fantastic opportunity for us to network and meet fellow colleagues in the industry, further expanding Rocket Paye’s brand.
CLICK HERE
TO VIEW OUR PROFILE ON THE REC WEBSITE
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