Budget 2021: What’s changed for Employers & Employees?
Following the roadmap to recovery that was announced by the Prime Minister a couple of weeks ago, we can now see how this is reflected in The Budget moving forward for employers, those employed and for the self-employed.
The key headlines include:
- The Coronavirus Job Retention Scheme will be extended to September. Employers will be expected to pay 10% towards the hours their staff do not work in July, increasing to 20% in August and September, as the economy reopens.
- The Self-Employment Income Support Scheme (SEISS) will continue with a fourth and a fifth grant.
- Those that became self-employed in 2019-20 may now be able to claim direct cash grants under SEISS.
- SME’s in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
- £7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
It was also announced that the Chancellor ‘is increasing support with £126 million of new money to enable 40,000 more traineeships, and doubling the cash incentive to firms who take on an apprentice to a £3,000 payment per hire. The National Living Wage will be increased to £8.91 from April and there will also be a six-month extension of the £20 per week Universal Credit uplift, with eligible Working Tax Credit claimants receiving a one-off payment of £500.*’
For business owners it’s also worth noting that from April 2021, ‘the new super-deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment. This is worth around £25 billion to UK companies over the two-year period the super-deduction will be in full effect.**’
This is a welcoming update for many and it’s great to see that businesses can still get the support that they need as we slowly but safely emerge from the pandemic and lockdown restrictions over the year.
Get in touch
If you’d like to find out more about this update, or have any questions about the Furlough scheme and your business, please get in touch with Employment Principal, Jon Taylor.
All information in this update is accurate at the time of writing. It is meant for general information only and is not legal advice.