HMRC has confirmed that payments made to individuals instructed to self-isolate by NHS Test and Trace will not be subject to employer or employee Class 1 National Insurance (NI) contributions. Employers will also not be required to pay Class 1A NI contributions in relation to the payments. It was announced on 20 September 2020, that from 28 September 2020, individuals who are on low incomes and have tested positive for coronavirus, or have been advised by Test and Trace to self-isolate, would be entitled to a support payment equating to £500. This would be available in scenarios where employees cannot work from home and so would have lost income as a result of adhering to self-isolation guidelines. This applies to those who live in England, and who are receiving at least one of the following benefits:
Universal Credit
• •
Working Tax Credits
• Income-related Employment and Support Allowance • Income-based Jobseeker’s Allowance • Income Support • Pension Credit • Housing Benefit
Ordinarily, payments of this nature would be classed as earnings, and so would be liable to both employee and employer Class 1 NI contributions. As local authorities will be responsible for making the payments, they would have to consider this when making payments to eligible individuals, and employers would also need to ensure that they paid employer Class 1 NI contributions on the gross amount received. To avoid these administrative burdens for the one-off payment, a measure has been implemented to ensure that payments of this nature are not subject to NI contributions.
This measure will take effect from 22 October 2020.
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Prime Minister confirms three-tier approach to tackling coronavirus 13 October 2020
Prime Minister, Boris Johnson has confirmed that the Government’s new plan of action for containing the spread of coronavirus will involve a three-tier approach, which will see cities categorised into one of three risk categories- medium, high or very high. Certain businesses will be forced to close, including pubs, bars, betting shops, gyms, leisure centres and casinos, in the areas identified as being on the very high Covid-19 alert level. It is these businesses that will be able to access the extended Job Support Scheme (JSS), under which the Government is offering to pay staff for two-thirds of their usual salary, up to a maximum of £2,100 per month. The only region that is currently on the very high alert level is Liverpool City, and the new lockdown restrictions will need to be observed from Wednesday 14 October. Areas that are already under additional local restrictions will automatically be placed into the high alert level, which means that any household mixing indoors is banned. The majority of areas in England will, however, be placed on the medium alert level, which means that they must abide by the current restrictions, such as the rule of six and the 10pm curfew for hospitality establishments.
It has been confirmed that all retail outlets, schools and universities can stay open.
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Applications for SEISS grant two to close on 19 October 2020 19 October 2020
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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