Payroll Update – Budget 2021
I am sure you all were glued to the news when Rishi Sunak announced his budget to the house. There were no less than 63 key updates in this budget, so whilst many people have already posted all the headline points, I thought I would break down in a bit more details every change related directly to payroll.
Job Retention Scheme
This is now extended to the end of September 2021, however it will taper from July 2021
Check out this super handy table that explains it all:
Any employees that were employed on 2nd March 2021 will now be eligible for the CJRS from 1st May 2021 as long as RTI was sent on or before 2nd March 2021.
NI Lower Earnings Limit
This remains at £6,240 for the 2021-22 tax year.
The secondary threshold will rise to £8,840 and the primary threshold will rise to £9,568.
Pensions Lifetime Allowance
Did you know that this will be now frozen at £1,073,100 up to the 25-26 tax year?
Statutory Sick Pay Reclaim
People have been asking us about SSP and reclaiming money from HMRC.
For this we have a simple answer:
This will continue with no end date confirmed as of yet.
But of course keep checking back on here for any updates becasue we have reasons to believe that this may be removed at somepoint in the near future.
This also includes the requirement for SSP to be paid by all employers from day one for COVID-19 related absences.
National Minimum Wage Increases
What are the new National Minimum rates in 2021?
This will continue to go ahead on the first pay period that begins on or after 1st April so W/C 5th April for weekly paid employees.
The Rates can be found here on the Governments website:
BIK Easements related to COVID-19
Will Antigen tests and reimbursement of expenses related to home office equipment be extended?
We can confirm these will be extended for the 21-22 tax year which is good news for businesses.
There is light at the end of the tunnel for businesses like yours.
Secondly, changes are always happening and if we don’t keep upto date with them then we can risk not being compliant and also lose out on benefits like the Job Retention Scheme.
Have you got any thoughts on the CJRS ?
If you have found any errors on the page then please email us on firstname.lastname@example.org