Budget 2020 – An Employer Focus
Chancellor of the Exchequer Rishi Sunak presented Budget 2020 to Parliament on 11th March 2020. The main points to be noted by employers are:
- The personal tax allowance will remain the same at £12,500 for the new tax year 2020-21.
- There are no changes to the PAYE tax thresholds from 6th April 2020.
- The National Insurance threshold will increase by £868, from £8,632 to £9,500 for 2020-21.
- The Employment Allowance has increased to £4,000 from £3,000 for eligible employers.
- From April 2020 the government will restrict the Employment Allowance to employers with an employer National Insurance contributions (NICs) bill below £100,000 in the previous tax year.
- Employees aged 25 and over will receive the National Living Wage of £8.72 an hour and it was announced that it is planned that the National Living Wage (NLW) will increase by two thirds by 2024 that will equate to £10.50 per hour.
- In relation to the Coronavirus, as previously announced by the Prime Minister Statutory Sick Pay (SSP) will be paid from the first day of sick leave rather than day four and the government will refund Statutory Sick Pay for 14 days to employers with less than 250 employees.
- A temporary Coronavirus Business Interruption Loan Scheme will be available for businesses from the government to help pay employees’ wages and business costs.