The Government has closed a loophole which allowed employers to make furloughed staff redundant on reduced pay under the furlough scheme. The new law kicked in on 31 July 2020 to ensure furloughed workers who are made redundant receive redundancy pay based on their normal wage. Employees who are made redundant after more than two … Continued
MPs: Let opted-out workers re-enrol earlier into pensions
Employees who opted out of their workplace pension due to COVID-19 should be encouraged back into saving sooner than auto-enrolment rules would usually allow, a Government committee has said. Under current auto-enrolment rules, employees aged between 22 and state pension age who earn more than £10,000 a year are automatically enrolled into a workplace pension … Continued
Government clarifies furlough scheme stance for employers
Only employees who have been furloughed for at least three weeks on or before 30 June 2020 are eligible for the final phase of the scheme. Employers had until 10 June 2020 to place any workers on the job retention scheme if they wanted to take advantage of it until 31 October 2020. Jeremy Coker, … Continued
COVID-19 postpones off-payroll extension to the private sector
The Government has delayed extending the controversial off-payroll working rules to the private sector, as the UK fights to contain the coronavirus pandemic. Hot on the heels of announcing a £350 billion support package for struggling businesses, the Treasury pulled the plug on the extension less than three weeks before it was due to kick … Continued
Rollout of Off-Payroll Rules to the Private Sector Gets The Green Light
The Government is to press ahead with extending the off-payroll rules to the private sector next month, following the publication of a controversial report. From April 2020, every medium and large private-sector firm in the UK will become responsible for setting the tax status of any contractor they use, as is the case in the … Continued
Employers to pick up the bill for 6.2% national living wage increase
The hourly national living wage rate for over-25s will increase from £8.21 to £8.72 for 2020/21. The Low Pay Commission published recommendations for the new rates, which kick in from 1 April 2020. The national living wage is the Government’s minimum wage for over-25s. The minimum wage for under-25s will also rise. Workers aged between … Continued
Small Employers Risk Losing the Employment Allowance in 2020
Plans to remove the employment allowance for large employers from April 2020 could impact on smaller firms. This allowance provides employers with a reduction to their national insurance contributions (NICs) bill of up to £3,000. Employers that claim the allowance can carry it forward from one tax year to the next, but that will stop … Continued
Automatic Enrolment Minimum Contributions Increase On 6 April 2019
Employer duties By law, the total minimum contributions your organisation must pay into its staff workplace pension schemes increase on 6 April 2019. You need to be ready for this increase, and make sure you’re set up to pay the correct amounts into staff pension schemes – so you comply with the law, and your … Continued
New Payslip Rules From 6 April 2019
From the 6th April 2019 there will be new rules which will change how you issue payslips to workers. Previously, only your staff classed as employees needed to get written itemised payslips. You didn’t need to itemise payslips for any staff classed as workers. The difference between employees and workers An employee is someone who … Continued
Auto-enrolment Fines Rise 146%
Fines issued to employers that fail to comply with their auto-enrolment responsibilities have more than doubled over the last two years, a report from the Pensions Regulator shows. In 2017/18, there were 36,137 fines issued to employers for not complying with the requirements of auto-enrolment – up from 14,707 such penalties in 2016/17. The Pensions … Continued