HR Updates - Changes from April, 2021

• IR35 

Changes to the off-payroll tax legislation, IR35, which was due to be implemented in April 2020, have been deferred to 6 April 2021. This means that you should identify any self-employed consultants in your workforce who offer their services through a limited company (personal service company). They should use the government online tools to ascertain if there will be an obligation on the company to deduct income tax and national insurance contributions at source when paying the contractor.

• Statutory minimum wage increases
• From 1 April 2021 the national living wage (NLW) will increase from £8.72 to £8.91 per hour and will apply to workers age 23 and above (whereas it currently applies to those age of 25 and above).

• The national minimum wage (NMW) rates will also increase from 1 April 2021:

• from £8.20 to £8.36 per hour for 21 to 22 year olds
• from £6.45 to £6.56 per hour for 18 to 20 year olds
• from £4.55 to £4.62 per hour for 16 and 17 year olds
• from £4.15 to £4.30 per hour for apprentices.

Please contact me on 07968 325271 with any questions.