3rd April 2020
Important legislation changes to consider for 2020/2021 Tax Year (06 April 2020)
Filed Under: Coronavirus / COVID-19 updates, Tax
- There will be no tax code points uplift this year with the personal allowance remaining £12,500 per annum
- The Employment Allowance will increase to £4,000 from £3,000 (subject to relevant criteria)
- Holiday pay for casual workers, including zero-hour contracts, will now be calculated based on average weekly earnings over 52 weeks, instead of 12
- The introduction of Statutory Bereavement Pay (SPBD) following the death of a child (subject to relevant criteria)
- Increase in National Minimum & Living Wage:
- Increase in Statutory Sick Pay (SSP) – £95.85
- Increase in Statutory Maternity/Paternity/Adoption & Shared Parental Leave(SMP/SPP/SAP/ShPP) – £151.20
- The earnings trigger of £10,000 and contribution percentages of 3% employer & 5% employee will remain the same for the purposes of Auto Enrolment, but the lower and upper levels have changed.
In light of Covid-19 virus, HM Revenue & Customs have advised that workers will receive Statutory Sick Pay (SSP) from their first day off, not the fourth. It was also announced in the budget, that companies with less then 250 employees would be able to reclaim Statutory Sick Payments made as a result of the Covid-19 outbreak; we await further information on this.
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