A NUMBER of law and rule changes affecting everyday life people should be aware of are coming into effect this month.
Changes to Employment law, divorce law and tax rates will start from next month.
Here is everything you need to know.
HMRC to stop making payments to Post Office card accounts
HM Revenue and Customs will stop making payments to Post Office card accounts from April 5 with thousands of customers still needing to switch.
Customers must notify HMRC of their new account details before changes come into force next month.
People will have to choose an alternative account to receive benefit payments and update their details or payments will be paused until HMRC are notified of new account details.
Benefit payments can be made to a bank, building society or credit union account.
Car tax increase 2022
From April 2022 Vehicle Excise Duty, more commonly known as car tax, will increase in line with the Retail Price Index measure of inflation.
For cars that emit no CO2, prices will remain at zero. If your car emits between one and 50kg of CO2 per km then standard rate will increase from £155 to £165.
The Driver and Vehicle Licensing Agency (DVLA) keeps checks on car tax paid in the UK. If an untaxed vehicle is not declared SORN then the owner will receive a £80 fine.
New divorce laws 2022
Changes to the legislation surrounding divorce in the UK will come into effect on April 6 2022.
The changes relate to the Divorce, Dissolution and Separation Act 2020, which aims to reduce the potential for conflict amongst divorcing couples by:
- removing the ability to make allegations about the conduct of a spouse
- allowing couples to end their marriage jointly
The act also introduces a minimum period of 20 weeks between the start of proceedings and application for conditional order. This provides couples with a meaningful period of reflection and the chance to reconsider. Where divorce is inevitable, it enables couples to cooperate and plan for the future.
It will no longer be possible to contest a divorce, except on limited grounds including jurisdiction.
Couples must apply under the current law by 31 March 2022 or wait for the changes to come into force.
National Minimum Wage 2022
The National Minimum Wage will rise from April adding an extra 82p to hourly pay.
Ministers claim the pay increase will amount to £1,000 more a year for the average worker.
From 1 April, the hourly rate for people aged 21-22 will rise to £9.18 an hour, up from £8.36.
National Living Wage for over-23s would increase to £9.50.
The apprentice rate will also rise, up from £4.81 an hour to £4.30.
Is red diesel being banned?
As of April 1, red diesel and rebated biofuels will become illegal to help the UK meet its 2050 climate commitments.
New tax on plastic packaging
A “plastics packaging tax” charging manufactures and importers £200 per tonne on packaging made of less than 30% of recycled plastic will be introduced in April 2022.
It was first announced as part of Rishi Sunak’s Budget in March 2020.
The government defined plastic packaging as “packaging that is predominantly plastic by weight”.
The government says the new tax aims to “provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging”.
Finance Act 2021 – changes to corporation tax
As enacted in the Finance Act 2021, the rate of corporation tax will remain at 19% for 2022/23, but there will then be an increase to 25% from April 2023 applying to profits over £250,000.
Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.
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