Anna’s Accountancy Alerts – February 2020

Coronacrisis, accounting, bill payment and new normal

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.

Conditions: –

  • 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.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.