Yesterday (03 March 2021), the UK Chancellor unveiled a much anticipated budget and whilst we didn’t end up seeing many changes there were some key ones that will affect your employees considerably.

Key Announcements

  • Coronavirus Job Retention Scheme (CJRS) has been extended to September 2021, with until December 2020, continuing as a 80% contribution until July at 70% and August and September at 60%.  The employer will be expected to make up the difference, along with employer national insurance and pension contributions.
  • Tax-free personal allowance is to be frozen at £12,570 from April 2021 levels to 2026.
  • The higher rate income tax threshold to be frozen at £50,270 from April 2021 levels to 2026
  • Incentives for apprenticeships will double to £3,000 per hire, dependent on a several factors

What will be changing from April 2021?

  • Minimum wage is still set to increase to £8.91 an hour from April, with those aged 23 or over now being included and slight increases for those in lower age brackets.
  • IR35 (or “off-payroll working rules”) is to become effective from 6 April 2021, meaning all public sector clients and medium or large-sized private sector clients will be responsible for deciding your worker’s employment status. This includes some charities and third sector organisations.
  • Statutory Sick Pay (SSP) will rise to £96.35 per week

These last 12 months have been tough for many and I’m proud to say that we’ve supported our clients in lots of ways, including developing a Coronavirus Support Hub for Employers, right through to offering Furlough HR Agreements and offering a CJRS Reclaim Service for our payroll clients.

Author: Gary Parsons
Gary is CEO at Talk Staff, passionate about the role that people play in helping build long-term and sustainable businesses. He sits on local business advisory boards and has been key in leading the growth of Talk Staff from inception in 2009.
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Last Updated on 3 weeks by Hannah Ingram

Last Updated on 3 weeks by Hannah Ingram