April sees a number of legislative and tax changes come into effect, we’ve included details in below to remind members and ensure they are complying.
Minimum wage rates
From 1 April, the National Living Wage will increase to £9.50 per hour, whilst the National Minimum Wage will rise to £9.18 for 21‐22 year olds, £6.83 for 18‐20 year olds, and £4.81 for 16‐17 year olds. The Apprentice Rate will also increase to £4.81.
End of Red Diesel rebate
From 1 April the entitlement to use rebated red diesel will be removed from most sectors, including construction, which means it will be illegal to put red diesel into the tank of a vehicle or machine being used for construction work. If HMRC finds traces of red diesel in such a vehicle or machine, it will ask for evidence to demonstrate that it was put in before the rules changed and is still being used up. HMRC has confirmed it will take a pragmatic approach to enforcement in this situation but can seize the vehicle or machine and issue a fine of £250. To help members manage this significant change, Build UK has published a series of Frequently Asked Questions covering the transition from red to white diesel which includes a checklist of the steps to take.
New Plastic Packaging Tax
The Plastic Packaging Tax comes into force on 1 April 2022 and will be charged at a rate of £200 per tonne. The CPA has produced a briefing paper on the effects of this new tax.
Gender pay gap deadline
Companies with 250 employees or more have until Monday 4 April to report their gender pay gap information for 2021/22. Employers that fail to report on time or report inaccurate data via the gender pay gap service could face enforcement action.