New Tax Year Updates 2020/21

The Budget has recently been announced heavily focused on the current Coronavirus / COVID-19 situation.

Statutory Sick Pay

Firstly, the sick pay rules will be temporarily changed so that Statutory Sick Pay is paid from day one, rather than day four. The weekly amount will continue to stay at £94.25 per week, rising to £95.85 per week from April 2020.

This Statutory Sick Pay (SSP) can be reclaimed by small businesses with up to 250 employees. The procedure of how to claim back the full amount is yet to be revealed, but we are closely monitoring changes to report of the updates.

Employment Allowance

Currently businesses can claim £3000 per annum to reduce their Class 1 National Insurance contributions. This will rise to £4000 from April, provided your Class 1 liability is below £100,000. Please note associated companies will be linked and therefore only one PAYE scheme can claim. For clarification on this, please do give us a call on 01773 813562.

Company Cars and Vans

The company van benefit charge and the van and car fuel benefit charge will increase from the 6th April 2020 by the Consumer Price Index. This means that the flat-rate van benefit charge will increase to £3,490, car fuel benefit to £24,500 and the flat-rate van fuel benefit charge will increase to £666.

Off Payroll Working IR35

As this is an increasingly in depth topic at the moment, please see our News Updates page for more details.

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