Latest UK HR and Government Update

Taxes, returns & payroll
The Companies Act 2006 is changing the law for companies. Passed in 2006, the Act reaches the final stage of implementation on 1 October 2009. More information here

Directors' addresses: all companies will need to provide a service address for every director in their register of directors and keep a record of their directors' residential addresses separate from their register of directors.

Company and business names: measures will be introduced to enable the public to easily find a business name and prevent business names being misleading.

Memorandums and articles of association: where a business incorporates on or after 1 October 2009, it will be able to use - if it so chooses - model memorandum and articles of association. Check the Companies House website, for updates/templates.

Company particulars in correspondence: a company will have to include its name in all forms of business documentation, including electronic documents.

Place for keeping key company records: every company will be able to have a single alternative inspection location (SAIL) as an alternative to its registered office, at which it must make its key records available for public inspection. This site will have to be in the same part of the UK as its registered office. Companies will have to notify Companies House of their SAIL, the records they keep there and of any change in their SAIL's address.

Inspection of company records: a person wishing to inspect a private company's records will have to give advance notice of the date and time they wish to carry out the inspection. In addition, companies will not be able to prevent the person from copying all or part of a record they are entitled to inspect.

Providing copies of company records: if a person requests a hard copy of a company record, the company must provide a hard copy even if the record is held electronically. If a person requests an electronic copy, the company must do so if the record is held electronically.

Notification of particulars of share capital: in an application for a new company, the particular of share capital will be included in a new 'statement of capital', rather than being included in the memorandum. Any changes in capital will be notified to Companies House through a new statement of capital.

Reduction of share capital: as an alternative to the current process requiring court approval, private companies will be able to choose to reduce their capital by special resolution, supported by a solvency statement by each of the directors.

Overseas companies with a business establishment in the UK: there will be a single regime for the registration by overseas companies of the particulars of their UK establishments. There will also be a new regime for the registration of charges over property in the UK created by such companies.

Merger of Companies Registry in Northern Ireland with Companies House: there will be a single register of companies for the entire UK. As a result, companies incorporated in Northern Ireland wishing to establish a place of business elsewhere in the UK will no longer have to register as an overseas company. See our regulation update on the merger of Great Britain and Northern Ireland company registers.

Record-keeping requirements for limited liability partnerships (LLPs): new record-keeping requirements will be introduced for LLPs.

The above outlines key changes for the final implementation of the Companies Act 2006. Find detailed information about Companies Act changes on the Companies House website

Regulation of community interest companies (CICs): new provisions will enable a CIC to convert to the asset-locked form of a community benefit society and a Scottish charity to convert to a CIC. In addition, requirements relating to the appointment and removal of directors, alternate directors and casting votes will be removed and a reasonable-persons test will be added to the community aspect section of the community interest test.

Formation of limited partnerships: on registration, Companies House will officially confirm that a limited partnership has been formed. Limited partnerships will also have to include in their name an indication of their legal status.

Employing people
The national minimum wage (NMW): the NMW for eligible workers will increase. It will rise to £5.80 an hour for workers aged 22 and above and to £4.83 an hour to workers aged 18-21. The rate for those under 18 but above compulsory school age rises to £3.57 an hour. See our regulation update on the increase in the national minimum wage rate.

Tips, service charges, etc and the NMW: bars, restaurants, hotels, etc will no longer be able to count service charges, tips, gratuities and cover charges paid to a worker through the employer's payroll as part of the NMW.

Redundancy payments and certain employment tribunal awards: the limit on a week's pay for calculating statutory redundancy payments, and tribunal awards that use a week's pay as the basis for calculation, will increase from £350 to £380.

Source: (C) Businesslink