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Employment

The Budget and HR

Budget and HR 2021

Wednesday, March 10, 2021

Coronavirus Job Retention Scheme (CJRS) (furlough):

  • CJRS extended until the end of September 2021. Workers to continue to receive 80% of wages for any unworked hours (up to the cap of £2,500 per month).
  • Employers to contribute 10% wages for unworked hours from 1 July 2021 (government contributing 70%)
  • Employers to contribute 20% wages for unworked hours from 1 August 2021 (government contributing 60%)

Self-employed Income Support Scheme (SEISS)

  • The Fourth Grant will be available from April 2021. This covers February – April 2021 and will be worth up to 80% of three months’ average trading profits (capped at £7,500).
  • A Fifth Grant will be available from July 2021. Where an individual can prove their turnover has fallen over 30%, then the grant will be worth up to 80% of three months’ average trading profits.
  • Where turnover has fallen less than 30%, the grant will be worth up to 30% of three months’ average trading profits.
  • The Fifth Grant is expected to be available from late July 2021.
  • Approximately 600,000 more people will now be able to claim under this scheme(provided that they have submitted a 2019/2020 tax return)

“Re-Start” Business Grants

  • For Hospitality, Hotels, Gyms and Leisure – grants of up to £18,000 per premises. Calculated according to property rateable value.
  • For Non-Essential Retail – grants of up to £6,000 per premises. Calculated according to property rateable value.
  • Local authorities are to distribute the grants..

Universal Credit and Working Tax Credits

  • Universal Credit uplift of £20 per week will continue until September 2021
  • Those who qualify for Working Tax Credits will receive a one-off payment of up to £500

Freeports

Employer National Insurance Contributions (NICs) Rate Relief

Employers will pay 0% employer NICs on the salaries of any new employee working in the Freeport tax site. This 0% rate would be applicable for up to three years per employee on earnings up to a £25,000 per annum. An employee will be deemed to be working in the Freeport tax site if they spend 60% or more of their working hours at the designated site. The relief is intended to be available for up to 9 years from April 2022. The relief would end no earlier than April 2026 and would therefore be available for a minimum of four years.

If you have any queries or concerns relating to any of the articles above or a general enquiry regarding employment law please contact Robert Gibson or Martha Craven on 0191 2328451
or e-mail robertgibson@samuelphillips.co.ukmarthacraven@samuelphillips.co.uk

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