12 New Laws And Rules That Will Impact Individuals And Businesses In The UK In 2022

In 2022, dozens of new laws will take effect in the United Kingdom, with amended restrictions in areas like divorce, driving, and the environment having the potential to directly impact individuals.

Refinements in the areas of employment, corporate mergers, and customs regulations will all have an impact on how and what is expected of British businesses.

Here's a rundown of some of the most important new laws set to take effect in 2022.

Pay Scales

In this year's Autumn Budget, Rishi Sunak announced that the National Living Wage will increase in April 2022.

This represents an increase in wages from £8.91 to £9.42 for individuals over 23.

The National Minimum Wage (for individuals older than 16) will also increase.

Maybe provide an example of the rate changes because they vary on the age bracket

The National Minimum Wage in 2022 - GOV.UK (www.gov.uk)

Apprentices younger than 19 or older than 19 and in their first year of training are eligible for a higher apprentice rate.


Commercial enterprises looking to expand and make acquisitions in the coming year should be aware of the National Security and Investment Act 2021, which took effect on 4 January 2022 and requires businesses looking to buy specific UK companies to notify the government of their intention, giving the government the opportunity to review related deals even after they have been finalised in the interests of national security.

The business secretary, Kwasi Kwarteng, will be the decision-maker, with the authority to limit almost any proposed merger if there is cause to believe it will jeopardise British interests. If you have any queries regarding this, you should hire a business lawyer who can talk you through everything.

You might like - Employment Law: The Top 10 Things you Need to Know

Plastic Packaging Tax

Beginning in April of next year, all UK producers and importers will be subject to Plastic Packaging Tax (PPT)

This means that plastic packaging manufacturers, importers, business clients of plastic packaging manufacturers and importers, and consumers who purchase plastic packaging or items in plastic packaging will all be required to pay tax.

The tax applies to all plastic packaging that does not contain at least 30 per cent recycled plastic.

The cost of PPT will be £200 per metric tonne of plastic packaging. The fee and rates for corporation tax will be implemented on 1 April  2022.

Corporation Tax

Beginning with the new fiscal year 2022, all businesses liable for Corporation Tax in the United Kingdom will be required to pay the main rate of 19 per cent on all non-ring fence profits exceeding £250,000. This percentage is anticipated to reach 25 per cent in 2023.

Small profits rate (SPR) will be established for enterprises with profits of £50,000 or less, allowing them to maintain the present Corporation Tax rate of 19 per cent.

VAT for the Hospitality Industry

On 1 April 2022, the temporary VAT rate of 12.5 per cent, which was established due to the coronavirus, will revert to the pre-pandemic rate of 20 per cent for goods and services provided by businesses in the hospitality, vacation accommodation, and attractions sectors.

Updatingmenus, websites, and other locations where prices are displayed is necessary.

Numerous businesses have said that they will need to raise their pricing structures.

National Insurance

Class 1 primary (paid by employees), secondary classes 1, 1A, and 1B (paid by employers), and class 4 (paid by the self-employed) National Insurance Contributions increased by 1.25 percentage points on 1 April  2022. (NICs). Similarly, the dividend tax rate was increased by the same amount.

This action is being taken to assist fund rising healthcare and socialcare costs. It will be codified as a distinct 1.25 per cent "health and social care fee" beginning in April 2023, while NICs and dividend tax will return to their 2021/22 levels.

Due to concerns about the rising cost of living, numerous company and employee groups have requested that the increase be cancelled. The Chancellor, Rishi Sunak, has refused to do so, but he disclosed in the Spring Statement that the National Insurance exemption threshold will rise to £12,570 in July 2022. This is the same as the exemption level for income tax.

Employment Allowance

According to Rishi Sunak's Spring Statement, the Employment Allowance, which helps businesses reduce their employer National Insurance contributions (NICs), will increase from £4,000 to £5,000 on 1 April  2022.

According to the government, businesses will be able to hire four full-time employees at the National Minimum Wage without having to pay employer NICs.

Importing products from the European Union

Since the end of the Brexit transition period, the administration has been implementing gradual changes to customs regulations. Businesses physically importing goods into the United Kingdom from the European Union (excluding Ireland) had until 31 December  2021, 175 days after importation, to file a complete customs declaration.

The power to postpone declarations terminated on 1 January  2022. Currently, businesses must adhere to all customs requirements, with the majority needing to complete import declarations and pay corresponding duties at the point of entry.

You must submit pre-notifications through the system for importing items, animals, food, and feed if you're importing animal products (IPAFFS).

Border Controls

On 1 January  2022, new regulations entered into effect mandating ports and other border facilities to monitor goods passing between the United Kingdom and the European Union. This means that unless things have a legal declaration and customs clearance, they cannot be released into circulation and, with the exception of Ireland, cannot leave the port.

If physical or documentary inspections cannot be performed at the border, commodities may be sent to an inland border facility.

Businesses must also file a "arrived" export declaration if the goods are passing through one of the border crossings that uses the arrived exports technique.

If you do not follow the required procedure, the new systems will prevent your things from leaving the country, and you will be turned away because you lack export permission.

Rules of Origin

Due to the agreement between the United Kingdom and the European Union, articles imported or exported to or from the EU may be eligible for a lower rate of customs duty under the rules of origin. Until the end of 2021, businesses were permitted to export goods to the EU using tariff preference,  after that, they were required to obtain supplier declarations.

As of 1 January  2022, you must have supplier declarations (where appropriate) when exporting goods.

Product Codes

All across the world, commodity codes are used to classify imported and exported goods. The World Customs Organisation examines and standardises them to six digits every five years. Following the conclusion of the most current review, the UK codes changed on 1 January  2022. Here you will find the complete UK product classification for 2022.

EV Chargers

Electric vehicle chargers will be required in all newly constructed residential, commercial structures in England.

Beginning in 2022, all newly constructed dwellings in England must be equipped with an EV charging connection.

All new homes and non-residential constructions, such as supermarkets and offices, as well as substantially renovated facilities with more than ten parking spaces are subject to the new regulatory requirement.

Boris Johnson noted that the new legislation will help expand the number of public EV chargers and expedite the adoption of electric vehicles prior to the ban on the sale of new diesel and gasoline vehicles in 2030.

The new initiative is part of the current administration's plan to reduce emissions as part of a broader emphasis on environmental issues.

What about current dwellings? Will they offer assistance in the installation of existing dwellings?


With so many new laws rules emerging that are going to affect the majority of individuals and businesses in the UK, it might be worth finding a lawyer who can guide you through everything and explain in layman’s terms what they mean to you.

Mishoura can put you in touch with an experienced and professional corporate solicitor in your area in as little as 90 minutes after an initial consultation.

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