HR Updates

What The Budget 2021 means for UK Businesses

Chancellor Rishi Sunak delivered his Budget yesterday, 03 March 2021. The announcements all pointed to prioritising restoring the economy, supporting both jobs and businesses. There are key considerations for business leaders, particularly those who are benefiting from using  “furlough” and will need to continue to use the scheme until their sector recovers and staff return to full working.

We’ve outlined a few key elements that may affect UK businesses. All business owners need to be aware of these points.

Extension to the Coronavirus Job Retention Scheme

As expected, a further extension to the Coronavirus Job Retention Scheme, also known as the Furlough Scheme has been announced. There will be the requirement for businesses to start paying towards the scheme as in previous reiterations of the scheme, which can be seen in the table below of the amounts required to be paid and when.

May June July August September
Government contribution: wages for hours not worked 80% up to £2,500 80% up to £2,500 70% up to £2,187.50 60% up to £1,875 60% up to £1,875
Employer contribution: employer National Insurance contributions and pension contributions Yes Yes Yes Yes Yes
Employer contribution wages for hours not worked No No 10% up to £312.50 20% up to £625 20% up to £625
For hours not worked employee receives 80% up to £2,500  80% up to £2,500 80% up to £2,500 80% up to £2,500 80% up to £2,500

Other key announcements include:

Extension to VAT cuts
An Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.

Extension of apprenticeship hiring incentive
Extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000.

£7 million to go to apprenticeship programme 
£7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.

£126 million to go to traineeships and placements
Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.

Contactless payment increase 
More than doubling the legal limit for single contactless payments, from £45 to £100

Businesses will continue to reclaim 2 week SSP
Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.

Increase to Corporation Tax
To balance the need to raise revenue with the objective of having an internationally competitive tax system, the rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70% of actively trading companies, will continue to be taxed at 19% and a taper above £50,000 will be introduced so that only businesses with profits greater than £250,000 will be taxed at the full 25% rate.

Cuts to company taxes when they invest new equipment
Beginning April 2021, the new super-deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment. This is worth around £25 billion to UK companies over the two-year period the super-deduction will be in full effect.

As further detailed guidance is released on each of the applicable points, we shall share these with you. If in doubt, please contact your lead consultant, who is already working with you. No need to be alone through these challenging times, call our office now for HR or H&S support and advice.

Never alone and Stronger together with Park City.

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Saul HunnaballSaul Hunnaball
15:44 12 Aug 22
We have worked with Park City for our HR and Health and Safety support for many years now and have always received an excellent service.Carley is our Consultant and she is always so helpful, as are... her colleagues when she is unavailable.I would highly recommend Park City.read more
Lea CuttingLea Cutting
08:31 27 Jul 22
Park City have worked with us for many years, advising and guiding us regarding HR and Health & Safety, along with supplying valuable training.We work with many people in several areas of expertise,... Sara Godfrey, Jennie Galione, Ashley Williams, Sam Parcell, Stephanie Devans, Poppy Hayhoe.They build confidence within our company and are always available with support and advice.They provide a consistent, professional, hands-on service, second to none!Thank you from DH Industries Limited.read more
Vikki PringleVikki Pringle
11:12 20 Jul 22
The team at Park City offer us the right level of service needed to confidently run a small business. They keep us up to date with UK policy HR requirements, help us manage any staff changes or... issues and policy documents. The team are informed, friendly and remain professional in my experience.read more
Tracy MeadTracy Mead
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The DS Group have been working with Park City now for a number of years and we have found their HR services to be invaluable. The service received is always to the highest professional standards and... they have assisted our business in becoming more efficient and effective in all HR matters.My consultant Sam Parcell is always on hand to help answering any questions quickly and professionally and she offers vital guidance, advice and support to us.We as a company will continue to use Park City’s services for many years to come and we cannot recommend them enough!Tracy Norton-Mead, Operations Director at the DS Group.read more
Katie HerbertKatie Herbert
13:35 07 Jul 22
We have worked with Park City for almost 10 years and have built up a great professional relationship over the years. The team are so friendly and helpful, and nothing is ever too much of an ask for... any of them. Our main HR contact is Carley, who is lovely, and she is very prompt in dealing with any queries we have regarding our 100+ staff. We would highly recommend their services for any local business.read more
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