Mar 2021

Budget 2021 – An Employer Focus

Chancellor of the Exchequer Rishi Sunak presented Budget 2021 to Parliament today 3rd March 2021.

The main points to be noted by employers are:

The personal tax allowance will increase from £12,500 to £12,570 for the new tax year 2021-22 and the plan is to keep it at this level until 2026.
The higher rate income tax threshold will increase by £270 to £50,270 from 6th April 2021 and will be frozen until April 2026.
The NIC primary threshold will increase by £68, from £9,500 to £9,568 for 2021-22.
The Coronavirus Job Retention Scheme is to be extended until the end of September 2021 with the government to continue paying 80% of employees' wages for hours they cannot work. Employers will be asked to contribute 10% for July and 20% for August and September.
The grant for new apprenticeships made available by employers in England to be extended to September 2021 and the amount increased to £3,000.
Traineeships to get a £126 million boost to fund 40,000 more places.
The Employment Allowance remains at £4,000 and will apply to eligible employers whose Secondary Class 1 National Insurance Contributions liability is under £100,000 a year.
From 1st April 2021, the National Living Wage of £8.91 per hour will now be paid to employees aged 23 years and over instead of the previous age threshold of 25 years and older.
The Vat rate for the hospitality sector will remain at 5% until 30th September 2021. This will increase to 12.5% until 31st March 2022, with the 20% rate resuming from April 2022.
£5 billion in new Restart Grants for businesses announced – £6,000 for non-essential outlets that are due to re-open in April and for hospitality, accommodation, leisure, gym and personal care businesses, a one-off cash grant of up to £18,000.

Posted byDebbie ClarkeinHMRC

Budget 2021 – An Employer Focus

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