Budget 2021: Employer Related Announcements

For those of you who haven't quite got round to reading the full budget report after Rishi Sunak concluded his speech in the Commons earlier (what have you been doing?), the following summarises those updates that specifically relate to employers and employees.

Pay & income

• The Coronavirus Job Retention Scheme will continue to be supported in it’s current guise until the end of September 2021 but will have step changes from July as employers are asked to contribute towards unworked hours (10% in July and 20% in Aug/Sept)
• Recommendations sought from the Low Pay Commission to allow the government to reach their NLW target of 2/3^rds median earnings for those aged over 21, by 2024
• SSP rebate scheme for small and medium sized employers will continue to be supported, covering up to 2 weeks of eligible SSP costs per employee
• Personal Allowance will rise to £12,570 from April 2021 as agreed, but will be frozen at this level until April 2026
• The Higher Rate tax band will increase to £50,270 from April 2021 but, again, will be frozen at this level until April 2026
• NIC thresholds will rise from 6 April 2021 to:
  • £9,568 Primary Threshold
  • £50,270 Upper Earnings Limit (aligning with the Higher Rate Tax band)

Expenses & benefits

• Antigen tests paid for by employers (either directly or reimbursed) will continue to be exempt from tax/NIC for the 2021/22 tax year
• Similarly, the exemption for reimbursed expenses for employees purchasing home office equipment will also be extended to the 2021/22 tax year
• Pensions Lifetime Allowance will be maintained at £1,073,000 until April 2026
• Help To Grow scheme for management upskilling training for SMEs – 90% subsidised by the government

Apprentices & trainees

• Continued support for high quality trainees for 16–24-year-olds in the 2021/22 academic year at £1,000 per trainee
• Employers hiring new apprentices between 1 April 2021 and 30 September 2021 will receive £3,000 per hire (pvsly £1,500)
• Additional fund to be established from July 2021 to expand portable apprenticeships – allowing apprentices to work across projects and employers

Consultations

• Government will publish a ‘Command Paper’ on tax policies and consultations, separately from the Budget, on 23 March 2021

International

• Changes to the immigration system to attract globally mobile talent in academia, science, research & technology by:
  • Introducing elite points based visa (by March 2022)
  • Reform Global Talent visa – automatic qualifiers for holders of international prizes, plus winners of scholarships and programs for early promise
  • Review Innovator visa to make it easier to obtain
  • New Global Business Mobility visa by Spring 2022 – for overseas businesses to establish a presence or transfer staff to the UK
  • Modernise immigration sponsorship system for ease of use