Business First Issue2 Vol5 CH3:Layout 1 23/10/2009 15:57 Page 18
Business rules changes
Changes to rules for Northern
Ireland business
by Keith McManus, president ACCA, Ulster branch
N
othing ever stands still in any form of salary and if companies get this wrong, there will
the business world, there be penalties.
are always new things for
companies to consider or act Company directors
upon be it evolving customer
trends, changes in the VAT rate or
There is some good news for company directors, who now
obligations within reporting
no longer have to publicly file their private addresses at
procedures – the list goes on.
Companies House. Companies will still need to keep a record
of directors’ residential details, but in future they will remain
Some businesses here in Northern Ireland may not be aware
confidential.
of a series of new business rules that have come into effect
recently and if they do not take appropriate action they could
Other areas within the new rules which are designed to
be fined or worse.
build upon confidentiality and security see more authority
being given to the Registrar to control the accuracy of the
We at the ACCA recommend that all businesses consider
information filed with it. This is to address the growing
these new rules, which were implemented on October 1st and
problem of companies being effectively hi-jacked by
act. Some of the areas that the new rules impact upon are;
fraudsters.
• changes to the national minimum wage
With such difficult economic conditions many businesses
• changes to company directors’ requirements understandably focus their attention on those elements of
• redundancy pay their business which increase their profitability. As a result of
• inspection of company records. this they may not always keep up to date on required
reporting procedures but unfortunately this can mean fines.
The National Minimum wage
The National Minimum wage is one that is relevant for many
Partnerships or sole traders
businesses here. It may sound trite, but companies need to Partnerships or sole traders are two business categories that
comply and make sure that all their records are up to date and need to be aware of such changes - these groups are now
that their staff is paid the right amount of money, and that the obliged to comply with the rules on business names whilst the
right deductions are being made. new rules have brought clarity to the circumstances in which
As a rule, new changes such as these are announced several
private companies are obliged, under the Companies Act, to
months in advance in order to enable employers to get to
make their records available for inspection by members and
grips with them and to make any necessary payroll changes in
others.
good time. And indeed, it does not end there. There are new model
The changes to the minimum wage have seen the adult
constitutional rules which apply to all new companies from 1
hourly rate rising to £5.80, the development rate has risen to
October unless they decide otherwise, with separate new
£4.83 and the rate for 16-17 year olds is now £3.57.
models for public companies, private companies limited by
In addition to these there is also a notable change to
shares and private companies limited by guarantee.
redundancy payments. Redundancy is something that is often
Such changes may seem daunting for some businesses but
unwelcome but is sometimes required to ensure a company
there is plenty of advice out there - from chartered certified
remains competitive, particularly in the economic climate we
accountants (ACCA), to Business Link,
are currently in. The upper redundancy limit will now rise by
www.nibusinessinfo.co.uk to the Directgov website,
£30, with the tax free element remaining the same.
www.direct.gov.uk and also from the Department from
The onus is on employers to ensure that employees are paid
Business Innovation and Skills. No one wants a fine so I’d urge
the right salary and to ensure that the right deductions are
any businesses that have concerns to check with a third party
being made, whether it be the minimum wage, redundancy or
as soon as possible.
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