- The Job Retention Scheme (Furlough) has been extended to end September 2021. It will be in its current form to end of June then in July 2021 employers will be expected to contribute 10% of the 80% payment to employees. In August and September this contribution from employers will rise to 20% as the scheme winds down. These contributions are for hours not worked.
- The National Minimum Wage and National Living Wage will increase again for the 2021-2022 tax year.
AGE GROUP 2020 – 2021 2021 – 2022 23 and over £8.72 £8.91 21 – 23 £8.20 £8.36 18 – 20 £6.45 £6.56 16 – 17 £4.55 £4.62 Apprentices £4.15 £4.30 NOTE: Previously the top rate of minimum wage was only available for those over 25.
- The Income Tax and NI Threshold will increase next year but will then be frozen. This will mean that the amount we are allowed to earn free of tax will be frozen from 2021-2022 so you will have to pay tax/NI on more of your pay. Not likely to have much impact at first but may as the ‘frozen’ years roll on.
- The £20 per week increase in Universal Credit has been extended for six months which will help those waiting to return to work or seeking employment.
- The good news that fuel duty is frozen will be welcomed by transport companies and will help people returning to work. Duty is also frozen on booze – so at least we can drown any sorrows at the same price!!