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.
- 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.