New Employment Allowance (EA) Rules Revealed
From 2020/21 employers whose Class 1 National Insurance (NI) bill was £100k or more in the previous tax year won’t be entitled to the EA.
The EA reduces an employer’s NI bill by up to £3k.
Long-Service Award Perk
Employers can reward employees with tax and NI-free perks for long service.
Exemption even applies to the director of a one-man company or, if it is your company and you employ your spouse.
- Must be for an employee with 20 or more years of service with the same employer.
- It is not cash or vouchers that can be easily converted into cash e.g. premium bonds.
- Does not cost the employer more than £50 for each year of service, and
- Can only apply if there are at least 10 years between each gift (if more than one gift is made to the same employee).
New Minimum Wage Rates For 2020/21
Significant rise – The government has announced a 6.2% rise in the national living (NLW) and national minimum wage (NMW) rates to take effect on 1 April 2020.
Rates – From 1 April the NLW for employees aged 25 and over rises from £8.21 to £8.72 per hour. The changes to NMW hourly rates are:
- Employees 21 to 24, from £7.70 to £8.20
- Employees 18 to 20, from £6.15 to £6.45
- Employees 16 to 17, from £4.35 to £4.55
For apprentices who are 18 or younger and those in the first year of their apprenticeship, the hourly minimum rate changes from £3.90 to £4.15.