Accountancy practice in Farnborough specialising in large trade companies
Measures to support businesses to manage employment and staffing issues 
 
Employment costs 
 
Legislation is to be enacted to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) that is paid for sickness absence due to COVID-19. There are certain criteria that has to be met for you to be eligible for this. 
 
These criteria include: 
 
• The refund will cover up to 2 weeks’ SSP per eligible employee who has been of work due to COVID-19. 
• Employers with fewer than 250 employees will be eligible. Employers will be able to reclaim expenditure for any employee who has claimed SSP as a result of COVID-19 
• Employers should maintain records of staff absences, but employees will not needs to provide a GP fit note 
• The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible. 
 
Employment allowance to increase by £1000 
 
The Chancellor announced an increase in the Employment Allowance from £3,000 to £4,000 to protect small businesses from the rise in minimum wage. From next month, companies will not have to pay Employer National Insurance Contributions on the first £4,000 of their annual bill. 
 
Changes had already been announced that the allowance is only available where, from 6th April, the Class 1 National Insurance bill of the business or charity was below £1000,000 in the previous tax year. 
You cannot claim the Employment Allowance from April 2020 if: 
 
• You’re the director and the only employee paid above the secondary threshold 
• You employ someone for personal, household or domestic work (i.e. a nanny or gardener) – unless they’re a care or support worker 
• You’re a public body or business doing more than half your work in the public sector (i.e. local councils and NHS services), unless you are a charity 
• You’re a service company working under IR35 rules and your income is the earning of the intermediary (i.e. your personal service company, limited company or partnership) 
• Class 1 National Insurance contributions (NICs) liability are at, or above, £100,000 in the tax year of the claim. This includes connected companies. 
• If the business exceeds the de minimis state aid threshold. 
Tagged as: COVID-19
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