Category: Employer

The costs involved with providing pensions tax relief are predicted to have increased to £42.7 billion in 2020/21, according to HMRC.  Forecasts for the 2020/21 tax year showed another steady annual rise, following estimates of £41.3bn in 2019/20 and £38.2bn in 2018/19. The 2020/21 figure of £42.7bn was split between £22.9bn in income tax and … Continued

Small and medium-sized employers can reclaim money from the Treasury to cover statutory sick pay (SSP) paid to employees with COVID-19. Chancellor Rishi Sunak reintroduced the SSP rebate scheme last month, after it initially closed on 30 September 2021. It forms part of a series of measures announced to support businesses affected by the new … Continued

Salary-sacrifice arrangements could help employees negate the National Insurance contributions (NICs) rise during 2022/23.  NICs will rise by 1.25% for employees, employers and the self-employed from April 2022 to fund the Government’s        new health and social care levy. In some scenarios, employees and employers can get around this by striking a salary … Continued

Employer contributions towards furloughed workers’ wages have increased again, as the furlough scheme prepares to close for good on 30 September 2021.  Officially introduced at the start of the pandemic in March 2020, the scheme has supported around 11.6 million jobs in the UK to date at a cost of £66 billion. For most of … Continued

Employers should remind working parents that they can reduce contributions into the childcare voucher scheme while they work from home.  Since the start of the COVID-19 pandemic, many employees have been working from home and have used less paid childcare due to lockdown restrictions forcing nurseries and after or before-schools clubs to close. Subsequently, HMRC … Continued

Payments into defined-contribution workplace pension schemes increased in the third quarter of 2020, according to the Office for National Statistics (ONS). During the first national lockdown last spring, many employees stopped or reduced contributions into their workplace pensions to save money amid fears of being made redundant or losing their jobs. Data from the ONS … Continued

Employers of low-paid workers in the UK will have to absorb another rise to the national living wage and pay it to over-23s from April 2021, the Chancellor has confirmed. Rishi Sunak confirmed the increase in his Spending Review 2020, in which it was announced the national living wage will increase from £8.72 to £8.91 … Continued

The furlough scheme has been extended until 31 March 2021, following a temporary extension last month.  The scheme was initially extended until 2 December 2020, prior to a second national lockdown in England. That guaranteed furloughed workers 80% of their salary – up to £2,500 – for hours not worked during the last four weeks. … Continued

Ministers are reportedly considering halting plans to implement the planned national living wage increase from next spring. The national living wage is currently set at £8.72 an hour for people aged 25 and over until 31 March 2021. Chancellor Rishi Sunak said in this year’s Spring Budget that “forecasts would see the rate rise to … Continued

The Government has closed a loophole which allowed employers to make furloughed staff redundant on reduced pay under the furlough scheme. The new law kicked in on 31 July 2020 to ensure furloughed workers who are made redundant receive redundancy pay based on their normal wage. Employees who are made redundant after more than two … Continued