Real Living Wage rises 

More than 390,000 workers at businesses that have volunteered to pay the real Living Wage, have received a record pay boost after the Living Wage Foundation brought forward the biggest rise in the scheme’s 11-year history. The new hourly rates, which were announced on 22 September, have increased by £1 to £10.90 across the UK and by 90p to £11.95 in London. 

Small company threshold extended  

The government has announced an extension of definition of small business for regulatory purposes to those with up to 500 employees. In its announcement, the government said this extension to the small company threshold would potentially remove 40,000 businesses from certain reporting requirements and relevant future regulations. The government also said the exemption would be applied ‘in a proportionate way’ in order to ensure workers’ rights and other standards are protected.  

VAT MTD deadline imminent 

HMRC has reminded all VAT-registered businesses that they must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file returns. From 1 November, businesses who file VAT returns on a quarterly and monthly basis will no longer be able to submit them via their existing VAT online account, unless HMRC has agreed they are exempt from MTD.