Payroll
...statutory powers effective 6 April 2021 to correct CIS deduction amounts...
whether they uphold this commitment. ● Reciprocal social security arrangements – New guidance is available which helps in checking which country’s social security contributions must be paid, where a worker from the UK is working in the European Union, Norway, Iceland, Switzerland or Liechtenstein (http://ow.ly/8fg130rtHj2). ● Right to work checks – Guidance is available on changes to right to work checks following the end of the transition period (http://ow.ly/8Zdu30rtHjt).
Note the change to age 23 for the minimum/living wage.
index figure for September 2020, which was 0.5%. Additionally, the statutory payment rates for 2021/22 have been confirmed. The statutory weekly payments for parental leave will increase to £151.97 per week, and statutory sick pay will be uplifted to £96.35 per week. Tackling CIS abuse In early 2020, HMRC launched a consultation which focused on the issue of abuse within the construction industry scheme (CIS) (http://ow.ly/ yEWQ30rtHPc). In recognition that essential taxes revenue is being missed in this industry, HMRC will be granted new statutory powers effective 6 April 2021 to correct CIS deduction amounts incorrectly claimed by sub-contractors in their RTI employer payment summary returns. In addition, there are modifications to the previous rules on the cost of materials, deemed contractors, and an extension to the scope of the CIS false registration penalty. n
NICs relief for employing veterans Following an election manifesto pledge to “reduce [NICs] for employers if they employ ex-Service personnel”, the government published a consultation (http://ow.ly/fnqs30rtHvX) which explored the more intricate details of providing businesses that employ veterans with an employer’s NICs holiday. What is known is that for the first tax year of the policy’s implementation (2021/22), there is no real time information (RTI) solution so employers will need to pay the associated NICs and then claim this relief the following tax year. From 2022/23, an RTI solution will be established (see page 9 for further information). Thresholds and rates In the 2020 Spending Review, it was confirmed that both tax and class 1 NICs thresholds would be increased for tax year 2021/22, in line with the consumer price
Minimum wage increases Within the 2020 Spending Review,
delivered in November, it was revealed that the national living wage and national minimum wage limits would increase for pay reference periods commencing on or after 1 April 2021. The government accepted the recommendations made by the Low Pay Commission in relation to the new hourly rates, which are as follows: ● individuals aged 23 and over: £8.91 ● 21–22-year-olds: £8.36 ● 18–20-year-olds: £6.56 ● 16–17-year-olds: £4.62 ● apprentices: £4.30. The daily accommodation offset will increase to £8.36.
Payroll update
ONLY £192+VAT* FOR MEMBERS
Duration Two consecutive half days
Delivery Online
CPD 7 points
Updated every seven days**
This focused course represents the single best opportunity to be briefed and updated on changes affecting payroll.
This course covers: ● The Coronavirus Job Retention Scheme (CJRS) and other developments as a result of Covid-19 ● Tax and NI contributions ● Operating Pay As You Earn (PAYE)
● Statutory pay and leave ● Statutory deductions ● Expenses and benefits ● Pension ● Employment rights and other matters
* Non-members price £384+VAT
** Correct at time of publication. Course materials checked and updated every seven days.
Book online at cipp.org.uk/training , email enquiries@cipp.org.uk or call 0121 712 1044 for more information.
cipp.org.uk CIPP_UK
cipp.org.uk
@CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 68 | March 2021
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