Many government departments synchronise the changes to businessregulations and issue them twice a year on 6 April and 1 October. Theseare known as common commencement dates. In 2008 there are a number ofamendments that could affect your nursery business:
The Companies Act 2006
Additional sections now come into force:
- For private companies it is no longer necessary to appoint a companysecretary.
- The signature of one director before a witness is now enough toexecute a deed.
Small companies and groups
Following changes to turnover and balance sheet thresholds, a smallcompany is defined by meeting two of the following criteria:
- No more than 50 employees
- An annual turnover of no more than 6.5m
- A balance sheet total of no more than 3.26m
The benefits of being classified as a small company are that:
- Corporation tax is payable at a reduced rate
- Companies House has relaxed reporting and accounting requirements
- Exemption from audit if you meet the total asset and turnover criteriatwo years in a row.
P46 Requirements
HM Revenue & Customs must be notified of all new employees once earningshave reached or exceeded the Lower Earnings Limit of 4,680 pa. Ifa completed form P45 has not been provided, you can supply the detailsvia your own business stationery rather than a P46. Seewww.hmrc.gov.uk.
Sex Discrimination Act 1975
Changes to the definition of pregnancy and maternity leavediscrimination cover bonus payments as well as allowing employees tobring the same claims of sex discrimination for periods of both OrdinaryMaternity Leave and Additional Maternity Leave.
Information and consultation (I&C) Rules
For the first time the rules will apply to nurseries with 50 or moreemployees.
For a full list of the regulation changes visit www.businesslink.gov.uk.
