Now that we have confirmation that a Budget will be delivered in March 2021, how significantly will the delay impact you and your company?
The most popular response was for those that stated that the delayed Budget will have a substantial impact on them, with 33% selecting this option. This was followed by 28% who confirmed that they expected to see information normally provided at Budget presented at the Spending Review, which Rishi Sunak delivered on 25 November 2020. We did receive details relating to the National Living Wage (NLW) and National Minimum Wage (NMW) rates for April 2021, information regarding public sector pay and confirmation about an increase to tax thresholds for next tax year from the Chancellor.
23% of respondents revealed that the later date of the Budget would have a marginal impact on them, with the remaining 16% confirming that this would have no impact whatsoever.
The previous Budget was also held later and delivered in March 2020. The team posted the exact same question back in February 2020, and it appears that views have changed dramatically since then, as 42% felt that the delay would have a moderate impact on their payroll department, and 32% expressed that they couldn’t see that it would have an impact at all. Only 26% of respondents were concerned about there being a significant impact on their payroll department.
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New CIPP Quick Poll: Spending review announcements 2 December 2020
Chancellor, Rishi Sunak delivered the Spending Review on 25 November 2020, and within the announcement, information was provided about various updates that will affect the work of payroll professionals next tax year.
The National Living Wage (NLW) and National Minimum Wage (NMW) rates for use from 1 April 2021 were confirmed. There was also an update in relation to the pay for those working within the public sector – so a pay rise will be awarded to more than one million NHS workers, but there will be a freeze on pay rises for the rest of the public sector for tax year 2021-22. There will, however, be a guaranteed pay rise of at least £250 for the lowest paid individuals working in the public sector, which will impact approximately 2.1 million workers. The other key announcement of interest to payroll professionals related to the fact that the Income Tax Personal Allowance and the Higher Rate Threshold will increase in line with the Consumer Price Index (CPI) figure for September 2020. Additionally, this figure will be used as the basis for establishing what the National Insurance (NI) limits and thresholds, and the rates of class 2 & 3 NI contributions will be for tax year 2021-22. The CIPP’s Policy and research team would like to hear from you, in relation to which update will impact your payroll department most substantially, so we have posted a Quick Poll on the CIPP’s News Online page for you to answer. We appreciate that payroll professionals are extremely busy, especially at the given time due to all of the measures introduced by the government to help businesses and employees through the outbreak of coronavirus, so we really appreciate the time taken to complete the Quick Poll. It should take less than a minute to make your selection.
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Of the measures announced at the Spending Review, 49% confirm that increases to National Minimum Wage rates will impact their payroll department most substantially 16 December 2020 Following on from the Spending Review, which was delivered by Rishi Sunak on 25 November 2020, the CIPP’s Policy team wanted to gauge which of the measures announced would have the most significant impact on payroll departments.
In order to do this, the team posted a Quick Poll on the CIPP’s News Online page, which asked:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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