Chancellor Rishi Sunak has today unveiled his budget, setting out the U.K. government's plans for 2021/2022, announcing new measures in a bid to help U.K. businesses and jobs through the global pandemic.
The main workplace-related announcements are as follows:
Coronavirus support
- The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021, continuing to pay up to 80% of employees' wages. However, employers will be asked to contribute 10% in July and 20% in August and September, as the CJRS is gradually phased out.
- 600,000 more self-employed people, of whom a large percentage have lost their jobs to the pandemic, will become eligible for government help, as the access to grants will be widened.
- The U.K. national minimum wage (at full rate) will increase to £8.91 an hour from April 2021.
Employment taxation
- There will be no changes to the rate of income tax or national insurance.
- The personal income tax allowance will remain the same at £12,570 from April 2022 until 2026.
- The higher rate income tax band will remain unchanged at £50,270 from 2022 until 2026.
Amongst other significant announcements made, the Chancellor confirmed that corporation tax will increase from 19% to 25% in 2023, with an exemption in place for smaller businesses (who have profits of less than £50,000) and the rate tapered for companies with profits of less than £250,000.
We expect that further information on each of the announcements will be published by the Government on their websites. The detailed, 106-page report can be found here.
Originally Published by Armstrong Teasdale, March 2021
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