The Government is increasing the threshold at which workers start to pay National Insurance contributions (NICs) by £12,570 this month – the largest increase in a basic rate threshold. The increase in the threshold means workers can earn an extra £2,690 before having to pay NICs. The change also brings the NIC and income tax … Continued
Treasury’s pensions tax relief bill soars past £42bn
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
Omicron-hit employers can reclaim statutory sick pay
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 could ‘dampen increased NICs costs’
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 costs increase as furlough scheme winds down
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 told to issue childcare voucher reminder
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
Workplace pension contributions bounce back after slump
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
National living wage to increase alongside age threshold fall
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
Furlough scheme extends UK-wide until the end of March
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
Commission set to recommend national living wage freeze
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