Don't get caught out by big changes this year

The introduction of the living wage is one of the key laws that will affect every business this year. The national living wage will be £7.20 an hour from April for workers aged 25 and over, rising to £9 by 2020. The national minimum wage will continue to function as before for those under 25.

This is a major shift for employers and one they must adhere to, especially as HMRC has launched a new task force solely to tackle non-payment of minimum or living wage. Employers who are found to be paying their workers less than the relevant wages will face reputational damage, steep penalties and be required to pay any wage arrears at the correct rates. Be prepared and have the rates in place ready to go live on April 1 to avoid being caught out.

The radical overhaul of UK state pensions will also have a major impact on employers. The option to 'contract out' of the additional state pension will be removed, meaning an increase in National Insurance costs for employers and members.

Also, if they have not already done so, all employers will soon have to provide workers with a workplace pension scheme by law. This is called 'automatic enrolment' and has already been implemented by many employers over the past year. When you have to start it depends on how many people you have on your payroll. You can't afford to avoid this and should be researching when this comes into force for your business.

There are also new provisions under the new Small Business, Enterprise and Employment Act 2015 that businesses have to know. From January, most firms will need to keep a register of people with 'significant control' over the company, so that's anyone who has 25 per cent or more of shares or voting rights. They also need to go on the register if they can appoint a majority of the board of directors of the firm or have the right to exercise, or actually exercises, a significant influence or control over the business.

Also, the need to file an annual return will be scrapped, but in its place firms will need to deliver a confirmation statement at least annually, stating that the firm has delivered all the required information. There will also be changes to the statement of capital, and private firms will have the option of keeping certain information on the public register at Companies House.

* Steven Corfield is a partner and agricultural specialist at Shropshire law firm, FBC Manby Bowdler LLP