As ususal, there are changes being implemented in April. Lets take a look at them.
National Minimum/Living Wage
From 1 April 2021:
Workers aged 23 and over: £8.91 an hour (National Living Wage)
Workers aged 21-22: £8.36 an hour
Development rate for workers aged 18-20: £6.56 an hour
Young workers rate for workers aged 16-17: £4.62 an hour
Apprentice rate: £4.30 an hour
The big change here is the change in age for the National Living Wage. It is moving from its current trigger of 25 down to 23. The apprentice rate is only applicable in the first year of an apprenticeship.
Statutory Sick Pay (SSP) increases from £95.85 to £96.35 a week from 5th April 2021
Statutory Maternity, Adoption, Paternity and Shared Parental pay increases to £151.97 a week, from 5th April 2021
Guarantee payments increase to £30 a day, payable for a maximum of 5 days within a three month period
Redundancy pay cap increases to £538 a week.
This comes into force for the private sector on 6th April. This is tax legislation that moves the onus from the contractor to the ‘Employer’. It is already in force in the public sector. The ‘Employer’ needs to assess if the contractor is inside or outside of the legislation. If they are inside, then the ‘Employer’ will need to deduct tax and national insurance at source. This legislation was due to come into force in April 2020 but was deferred given the pandemic. For more information, go to the HMRC’s guide.
The Furlough scheme is currently scheduled to be closed on 30th April 2021.
The Chancellor of the Exchequer is due to deliver the budget on 3rd March which may bring further changes.