Date
03 Mar 2021Category
Tax, Employer SolutionsOur Employment Tax team delve deeper, exploring the key announcements of the 2021 Budget.
Employment Tax announcements from the 2021 Budget |
Extension of furlough arrangements
This measure will ensure employees are no worse off than currently but will increase the cost burden for the business as the scheme winds down to 30 September. The key question is whether businesses will be able to continue employees in the same numbers where trade up take is sluggish with increasing employee cost. |
Extension of working from home expenses
This is a welcome and not unexpected extension to the relief for the cost of equipment to enable employees to work from home. The Statement is however silent on whether the £6 per week allowance, to cover ancillary heating, lighting, broadband costs is to continue to be allowed to be claimed post 6 April. The original extension of this relief was to end on 5 April 2021. One would hope that although this has been excluded from the statement this further relief will remain available. |
Flexibility for businesses attracting and engaging apprentices
These are welcome additions to current arrangements intended to encourage more apprentice uptake and flexibility across employers. |
National Living Wage changes
Again this is an extension to bring further employees within scope in the 23-25 age range. |
Taxpayer Protection Taskforce
This feels like a significant statement with the reviews carried out to date justifying further investment into reviews in this area. We are seeing a lot of HMRC enquiries. Businesses should be on higher alert that the chances of review are likely to increase significantly. |
IR35 implementation
This provides certainty around the implementation of IR35 changes in the private sector for medium and large businesses. Looking at the Budget reference to enablers of tax avoidance this may well mean that exotic schemes designed to sidestep IR35 will come under detailed HMRC scrutiny. |
Want to know more?
Across all areas of Tax, our experts have been commenting on their "first thoughts" of the 2021 Budget announcements. To read more, please use the following links:
Have you been affected by the Budget?
If you have any queries regarding the Budget 2021 announcements and the impact they may have on you or your organisation, please get in touch with your usual Azets contact or a member of our Employment Tax team.
Watch our webinar
On 4 March 2021, our expert advisors explored the technical issues arising from the 2021 Budget and provided a practical assessment of the key announcements and their impact for both businesses and individuals. As ever with the Budget, the devil was in the detail. Our presenters also highlighted issues the Chancellor may not have made obvious in his address to Parliament.
To watch our webinar recording and download a copy of our slides, click here.