The employment allowance remains at £4,000 meaning small businesses only pay Employers NI after this point. It is worth noting that the threshold at which Employers NI is due is lower than the employees NI threshold of £9,568 at £8,840.
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- It continues as is until June
- A gradual employer contribution of 10% in July and August and 20% in September will be made until the scheme finishes in September
HMRC compliance activity on furlough claims will continue and accelerate and it is essential good records of the amounts claimed are maintained including hours worked and the detailed calculations.
Worth remembering is that during ‘furlough hours’ employees MUST NOT WORK with the only exception being sole directors carrying out very minimal statutory duties (which excludes things like business development!).
The National Minimum Wage and National Living Wage are set to increase on 1 April 2021. There continues to be high profile compliance activity so do check that you’re paying the right wages.
Rates will be:
Aged 23 and above (national living wage rate)
Aged 21 to 22 inclusive
Aged 18 to 20 inclusive
Aged under 18 (but above compulsory school leaving age)
Apprentices aged under 19
Apprentices aged 19 and over, but in the first year of their apprenticeship
Also it’s worth reviewing pension arrangements as these salary changes might mean that some employees become eligible for a pension scheme for the first time.