Payroll
employment of armed forces veterans. The holiday will exempt employers from any NICs liability on the veteran’s salary up to the UEL. Prior to a digital service being available to employers from April 2022, transitional arrangements will operate. The government will consult on the design of the exemption. ● Employment allowance – Those employers eligible to claim the employment allowance will be able to reduce their class 1 NICs liability by up to £4,000 in 2020/21.
scheme uses relief at source or the net pay arrangement. Views will be sought on how the two systems could be aligned. ● Lifetime allowance – The lifetime allowance for pensions accruals and savings in a registered pension scheme will be set at £1,073,100 from 6 April 2020. ● Annual allowance – From 6 April 2020, the annual allowance adjusted income limit will increase to £240,000; the threshold income limit will be set at £200,000; and the minimum tapered annual allowance will reduce to £4,000. ● Collective money purchase pension schemes – Legislation will be amended so that these schemes can operate as registered pension schemes. Various leave entitlements ● Neonatal leave and pay – The government intend to create an entitlement to up to twelve weeks’ paid leave for employees whose babies spend a minimum of a week in neonatal care. ● Carers’ leave – The government will consult on a new in-work leave entitlement for employees with unpaid caring responsibilities, such as for a family member or dependents. This will help individuals to balance their caring responsibilities with work, particularly women who disproportionately undertake unpaid caring activities. COVID-19 A key part of the Budget announcements and measures concerned supporting people and businesses in the UK affected by the coronavirus (‘COVID-19’) pandemic. ● Statutory sick pay (SSP) – SSP is to be available to eligible individuals diagnosed with COVID-19 and to those who are unable to work because they are self- isolating in line with government advice. This is in addition to the change previously announced by the prime minister that SSP will be payable from day one instead of day four for affected individuals. Workers who are advised to self-isolate for COVID-19 will be able to obtain an alternative to the fit note by contacting NHS 111, rather than visiting a doctor, if their employer requires evidence. Further details are to be released. The government will bring forward legislation to allow small- and medium- sized businesses and employers to reclaim SSP paid for sickness absence due to COVID-19. Eligibility criteria include the
Weekly Monthly Annual
Period
following: up to two weeks’ SSP can be claimed per eligible employee off work because of COVID-19; and only employers with fewer than 250 employees can claim (determined by the number of employees as at 28 February 2020). Although employees will not need to provide a fit note from a general practitioner, employers should maintain records of staff absences. The eligible period for the scheme will commence the day after the day when amending regulations on the extension of SSP to self-isolators come into force. The government will work with employers to set up the repayment mechanism for employers as soon as possible Workers not eligible for SSP, such as the self-employed or those earning below the class 1 NICs lower earnings limit, can claim universal credit or contributory employment and support allowance. ● Support with tax affairs – All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HM Revenue and Customs’ ‘time to pay’ service. Those concerned about being able to pay tax due to COVID-19 can contact helpline 0800 0159 559 for advice and support. n ...able to obtain an alternative to the fit note by contacting NHS 111, rather than visiting a doctor...
Band
Lower earnings limit Primary threshold
£120 £520 £6,240
£183 £792 £9,500
Secondary threshold
£169 £732 £8,788
Upper earnings limit
£962 £4,167 £50,000
National minimum/living wage New national minimum rates apply from the first pay reference period beginning on or after 1 April 2020; see table. Economic conditions permitting, the government’s intention is that the national living wage (NLW) will be extended to all workers aged 23 and over in April 2021, and to workers aged 21 and over by 2024. The remit of the Low Pay Commission will include a revised target for the NLW of two-thirds of median earnings by April 2024. Based on current forecasts, this would be over £10.50 per hour.
National minimum/living wage Age 25 and over
£8.72 £8.20 £6.45 £4.55
Age 21–24 Age 18–20 Age 16–17 Apprentices
£4.15 Accommodation offset (daily) £8.20
Pensions ● Tax relief on contributions – The government has announced a call for evidence this spring on how to address the different outcomes for lower earners, depending on whether their pension
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| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
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