If redundancy strikes, you could receive up to £30,000 tax-free. Whether it’s statutory or a more generous employer offer, understanding your entitlements and the latest caps on weekly pay can make a real difference to your finances.

There is a tax-free threshold of £30,000 for redundancy payments, regardless of whether the payment is your statutory redundancy pay, or a more generous amount offered by your employer.

If you have been employed for two years or longer and are made redundant, you are typically entitled to redundancy pay. The legal minimum you are entitled to receive is known as “statutory redundancy pay.” However, there are exceptions to this entitlement, such as if your employer offers to retain you in your current role or provide suitable alternative employment, and you refuse the offer without a valid reason.

The amount of statutory redundancy pay is determined by your age and length of service, and is calculated as follows:

• Under 22: Half a week’s pay for each full year of service
• Aged 22 to 40: One week’s pay for each full year of service
• Over 41: One and a half weeks’ pay for each full year of service

Weekly pay is capped at £700, with a maximum of 20 years of service considered. The maximum statutory redundancy payment for the tax year 2024-25 is £21,000, with slightly higher limits applicable in Northern Ireland. The cap on weekly pay for redundancy calculations is expected to increase in April 2025, though details have yet to be announced.

Employers may opt to offer a higher redundancy payment, or you may be entitled to an increased amount based on the specific terms outlined in your employment contract.

The UK’s shift to the Foreign Income and Gains (FIG) regime from April 2025 changes how foreign income is taxed. If you are a UK resident, get ready to possibly pay UK Income Tax on all foreign earnings – no more non-dom remittance basis.

UK Income Tax is generally payable on taxable income received by individuals including earnings from employment, earnings from self-employment, pensions income, interest on most savings, dividend income, rental income and trust income. The tax rules for foreign income can be very complex.

However, as a general rule if you are resident in the UK you need to pay UK Income Tax on your foreign income, such as:

• wages if you work abroad
• foreign investments and savings interest
• rental income on overseas property
• income from pensions held overseas

Foreign income is defined as any income from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.

If you are not UK resident, you do not generally have to pay UK tax on your foreign income. There are special rules if you work both in the UK and abroad.

The remittance basis rules which allowed non-UK domiciled individuals (often referred to as non-doms) to be taxed only on UK income and gains, is being abolished. From 6 April 2025, the concept of domicile as a relevant connecting factor in the UK tax system has been replaced by a new residence-based regime known as the Foreign Income and Gains (FIG) regime. 

1 March 2025 – Due date for Corporation Tax due for the year ended 31 May 2024.

2 March 2025 – Self-Assessment tax for 2023-24 paid after this date will incur a 5% surcharge unless liabilities are cleared by 1 April 2025, or an agreement has been reached with HMRC under their time to pay facility by the same date.

19 March 2025 – PAYE and NIC deductions due for month ended 5 March 2025 (If you pay your tax electronically the due date is 22 March 2025).

19 March 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 March 2025.

19 March 2025 – CIS tax deducted for the month ended 5 March 2025 is payable by today.

1 April 2025 – Due date for corporation tax due for the year ended 30 June 2024.

19 April 2025 – PAYE and NIC deductions due for month ended 5 April 2025. (If you pay your tax electronically the due date is 22 April 2025).

19 April 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2025.

19 April 2025 – CIS tax deducted for the month ended 5 April 2025 is payable by today.

30 April 2025 – 2023-24 tax returns filed after this date will be subject to an additional £10 per day late filing penalty for a maximum of 90 days.

The UK is making significant strides in promoting gender equality within its top companies. According to the latest FTSE Women Leaders Review, women now occupy over 43% of board positions across FTSE 350 companies, marking a notable increase from previous years. This progress underscores the UK’s commitment to fostering inclusive leadership and harnessing the diverse perspectives that women bring to the boardroom.

Chancellor of the Exchequer, Rachel Reeves, emphasised the importance of this development, stating that while the UK leads in gender equality in boardrooms, continuous efforts are necessary to dismantle barriers preventing women from ascending to decision-making roles. Her sentiments highlight the ongoing need to ensure that top talent, regardless of gender, has the opportunity to thrive in leadership positions, thereby driving economic growth across the nation.

Minister for Investment, Baroness Gustafsson OBE, reflected on her personal experience, noting that strong female voices inspire positive change within organisations by introducing new ideas and adding greater value. Her insights reinforce the notion that diverse leadership not only benefits company culture but also contributes to enhanced business performance.

Despite these advancements, challenges remain. The number of female CEOs in FTSE 350 companies has slightly decreased, with only 19 women holding such positions, down from 20 the previous year. This indicates that while board representation is improving, translating this progress into executive leadership roles requires sustained focus and action.

The government’s Plan for Change places equal opportunities for women at its core, recognising that inclusive leadership is pivotal for a dynamic economy. By collaborating with businesses to promote women into key roles such as Chairs and CEOs, the UK aims to unlock billions in economic growth and set a global standard for gender equality in corporate governance.

In summary, the UK’s dedication to increasing female representation in leadership positions is yielding positive results. However, continued efforts are essential to ensure that this momentum extends beyond boardrooms into the highest executive roles, fostering an environment where talent and innovation can flourish irrespective of gender.

On 24th February 2025, the Arbitration Act received Royal Assent, marking a significant milestone in modernising dispute resolution in England and Wales. This new legislation is set to bolster the UK’s position as a global leader in arbitration, attracting more international businesses and investments.

Arbitration offers companies a quicker and more cost-effective alternative to traditional court proceedings, reducing legal fees and easing tensions between disputing parties. Each year, over 5,000 domestic and international arbitrations take place in England and Wales, contributing at least £2.5 billion to the UK economy in fees alone. With the new Act, the UK aims to outpace competitors like Singapore, Hong Kong, and Paris, ensuring it remains the top choice for legal services worldwide.

Minister for Courts and Legal Services, Sarah Sackman KC MP, highlighted the importance of this development, stating that the UK’s legal sector contributes billions to the economy and employs hundreds of thousands across the country. She emphasised that companies worldwide look to the UK for legal services and dispute resolution, and this new Act ensures that arbitration law keeps the country ahead, supporting economic growth as part of the government’s Plan for Change.

The Arbitration Act introduces several key reforms to make the process fairer and more efficient:

• Simplified Procedures: Streamlining arbitration processes to reduce costs and time for businesses.
• Protection for Arbitrators: Safeguarding arbitrators from unreasonable lawsuits, encouraging impartial decision-making.
• Enhanced Emergency Arbitration: Strengthening court powers to support urgent arbitration, facilitating timely decisions in critical situations.

The international arbitration sector has seen substantial growth, with industry estimates indicating a 26% increase between 2016 and 2020. Over the past decade, UK exports of legal services have risen by more than 80%, underscoring the global demand for British legal expertise.

Cristen Bauer, Head of Policy at the Chartered Institute of Arbitrators, expressed enthusiasm for the Act’s enactment. She noted that the Institute worked closely with the UK Law Commission during the review of the previous Arbitration Act 1996, and many of their recommendations were incorporated into the final report. Bauer believes the new Act will strengthen London’s position as a premier arbitration hub and set high international standards.

In summary, the Arbitration Act 2025 is poised to enhance the UK’s legal framework, making arbitration more accessible and efficient for businesses worldwide. This development not only reinforces the UK’s reputation in the legal arena but also promises significant economic benefits by attracting global enterprises to resolve their disputes on British shores.