Employment News Alert: 2021 UK Government Budget
The Chancellor has today unveiled his Budget setting out the UK government’s plans for 2021/2022, announcing new measures in a bid to help UK businesses and jobs through the global pandemic.
The main workplace-related announcements are as follows:
Coronavirus support:
- The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021, continuing to pay up to 80% of employees’ wages. However, employers will be asked to contribute 10% in July and 20% in August and September, as the CJRS is gradually phased out.
- 600,000 more self-employed people, of whom a large percentage have lost their jobs to the pandemic, will become eligible for government help, as the access to grants will be widened.
- The UK national minimum wage (at full rate) will increase to £8.91 an hour from April 2021.
Employment taxation
- There will be no changes to the rate of income tax or national insurance.
- The personal income tax allowance will remain the same at £12,570 from April 2022 until 2026.
- The higher rate income tax band will remain unchanged at £50,270 from 2022 until 2026.
Amongst other significant announcements made, the Chancellor confirmed that corporation tax will increase from 19% to 25% in 2023, with an exemption in place for smaller businesses (who have profits of less than £50,000) and the rate tapered for companies with profits of less than £250,000.
We expect that further information on each of the announcements will be published by the Government on their websites. For those who have the time to read all the detail, all 106 pages can be found here.
If you require any further advice on any UK employment matter, then please do not hesitate to contact Jonathan Bruck.
This article is provided for general information purposes only. Although every effort has been made to ensure that the information in this article is accurate, it does not constitute legal advice and should not be relied on as such. Should you require legal advice, please do not hesitate to contact us.
